Landmark property agency is now offering rent payment with credit cards for units in Dubai’s Discovery Gardens, a method formerly uncommon on the Dubai property market.
The acceptance of credit card payments depends on how many annual payments a tenant wishes to make.
The tenant has the option to pay the whole year’s rent by credit card. All credit cards are accepted in this offer. No discounts will be given if a one-year off payment is made by card.
However, banking experts say that this offer has to handled with care, because credit cards are risky financial instruments nowadays.
First, it needs a huge overdraft facility on the credit card, and even if the overdraft is repaid in monthly installments from the tenant’s salary, accumulating interest will make this payment scheme an expensive exercise.
Second, not every bank might agree to book a full-year rent payment on a credit card because this form of payment indicates that a tenant could already be struggling with other payments and has a higher likelihood to default.
However, for start-ups first quarterly payment by credit card could easy some financial pressure.