UAE-based digital real estate investment management platform Keyper, has officially announced a Rent Now Pay Later (RNPL) service, in bid to ease the financial burden for Dubai residents.
Under this, tenants will be able to pay their annual rent in monthly installments using a credit card.
Keyper said it will make it easier for tenants to manage their finances and enjoy a seamless rental experience while earning reward points from their credit card.
Set for launch in July, RNPL will be a first-of-its-kind offering in Dubai, said the company, adding that it has built this product to meet the current needs of tenants and landlords in the region.
Under this innovative payment approach, tenants will gain financial flexibility by spreading their rent payments over 12 months instead of the current 1-to-4 checks market standard, where they pay 3-to-12 months in advance.
Monthly rent will be charged to the tenant's credit card, ensuring timely payment. Once a tenant has accepted their new monthly rent, they will go through a simple approval process and be digitally onboarded to the Tenant Dashboard.
Tenants will be able to easily track their payments, add new credit cards, and access their tenancy contract through their personalized Tenant Dashboard, it added.
On the new service, Omar Abu Innab, Co-Founder & CEO of Keyper, said: "We recognize that Dubai is ready to leapfrog other global hubs by enabling tenants to digitize their rental experience and align it to the tenants’ income schedules. Traditional check payments are outdated, prone to errors, and do not provide a good user experience for tenants or landlords."
"We have designed our RNPL service to address these pain points and to enable our customers, tenants and landlords, to better manage their finance with ease," he noted.
In addition to benefiting tenants, Keyper said its RNPL service is also beneficial to landlords.
By allowing tenants to pay their rent in 12 installments, landlords are likely to experience improved tenant retention rates and reduced default rates. The seamless monthly rent payments through tenants' credit cards reduce the risk of late or missed installments.
"Landlords also have the option, through the Keyper Investor App, to receive an upfront payment for the annual rent at a discounted rate, which gives them immediate access to cash flow while eliminating their default risk," explained Innab.
Currently, Keyper is launching a waitlist for tenants to sign up, providing them opportunity to join their pilot programme. This phased approach will allow Keyper to provide a high-quality experience for all tenants and landlords, he added.
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