UAE Property: ‘Are landlords allowed to demand a year's rent in one cheque?’

Tenants can offer a slightly higher rent or security deposit in exchange for more cheques or monthly payments. Pawan Singh / The National

Question: Why do landlords still insist on one or two-cheque rental payments when I’m paid monthly? Isn’t this unfair to tenants? DH, Abu Dhabi

Answer: This is a frequent concern and it's obvious why tenants feel it’s unfair. The reason lies in the structure and risk profile of Dubai’s rental market. Many landlords prefer fewer cheques (one, two or maybe four) because it reduces administrative burden and gives them greater security in a market where tenants often leave the country or jobs can change.

I've heard tenants comment on many occasions that they have been mystified about the large sums of money they have spent upfront on rent. Here are some key points and what tenants should know.

From a legal position, there’s no law that mandates the number of post-dated cheques a landlord must accept. The practice is market-driven.

The reason this one-cheque payment persists is down to the fact that landlords face risks. Non-payment of rent through bounced cheques can lead to travel bans, building management issues and vacancy losses for tenants. I would advise you to do the following in order to get yourself a better deal.

Propose four cheques instead of one but be prepared to show stable employment or rental history. Offer a slightly higher rent or security deposit in exchange for more cheques or monthly payments. Use the fact that newer platforms exist (apps allowing monthly payments) as part of your discussion, showing you’re aware of alternative solutions.

However, I would be wary if a landlord demands one cheque unnecessarily or uses it to lock you in unreasonably. You should always question the fairness of the deal, especially if you’re renewing and now have some rental history or if the market has softened.

Paying one cheque upfront is still routine in many parts of the UAE, but that doesn’t mean you’re without negotiating power. Approach it as a negotiable term, not a fixed rule. If you’re confident in your stability, you may be able to secure more cheques, improving flexibility for you while still satisfying the landlord’s concerns.

Q: I keep hearing about huge service charge or maintenance fees in some towers, while rents keep rising. Are landlords to blame for high rents or is it these service charges forcing the issue? CK, Dubai

A: This debate shows up consistently on online forums, especially on platforms such as Reddit. I saw one post recently saying that a 1,100 square feet two-bedroom apartment in Dubai Marina demands as much as Dh22,000 ($5,990) a year in service charges, which equates to roughly Dh1,800 per month.

The reality is that owners and landlords are paying service charges approved by the building’s owners association as per the Dubai Land Department or Real Estate Regulatory Agency regulations.

If service charges climb, landlords often pass those costs (or at least a portion) to tenants through rent increases or possible reductions in incentives. This is important to understand because in some buildings with large-scale amenities (pools, gyms, valet, 24/7 security, luxury finishes, etc.) service charges can become a significant cost to the landlord, thus reducing net yield for them.

What can you do to mitigate this scenario? Check the service charge schedule before signing any rental contract. If charges jumped 30 per cent to 40 per cent last year, ask for justification. Always compare similar buildings because two adjacent towers with equal rents could differ in their service charges, so try to understand why.

Use the renewal time to renegotiate. If the building maintenance or amenities have declined (poor cleaning, broken pool or withdrawn facilities, etc.), you have stronger grounds for a smaller rent increase.

My advice to you would be that landlords are not the sole drivers of high rents; operational costs and service charges also play a major role. Tenants who understand this dynamic can negotiate more effectively or choose buildings where service cost-rent balance is healthier.

Mario Volpi is senior vice president of investment advisory at Allegiance Real Estate. He has worked in the property sector for more than 40 years in London and Dubai. The opinions expressed do not constitute legal advice and are provided for information only. Please send any questions to [e-mail]