Tenants of residential units in Dubai and Sharjah demanded monthly payment facilities instead of annual payment in four installments, to meet the consequences of the Corona virus.
They told «Emirates Today» that owners and real estate companies refuse to allow them to pay the rent monthly, indicating that the monthly payment will reduce the financial burden under the current circumstances, especially with the reduction of salaries in some of the companies that they work with.
For their part, real estate company managers explained that the reasons for some companies 'adherence to the four-payment system is due to bank obligations and avoiding the accounting burdens of the monthly payment, noting that there is a difference in the companies' positions regarding the payment of rent facilities.
Financial burden
In detail, the tenant Karim Saif said that paying the rent of the house for three months in one payment represents a financial burden on him in light of the current conditions resulting from the repercussions of the spread of the Corona virus, calling on the owners and real estate companies to allow the monthly payment of rent to reduce the financial burden on the tenants.
For his part, the tenant, Youssef Ibrahim, stated that some real estate companies refuse to allow tenants to pay in accordance with the monthly system, indicating that the payment of rent in four installments is not commensurate with the current financial conditions that made the income of many tenants greatly affected by the consequences of the "corona".
Refusal
Tenant Mahmoud Sayed Ali stated that real estate companies refuse to contribute to offering initiatives to reduce rents under the conditions of "Corona", in addition to that they refuse to facilitate the monthly payment of rents, considering that this will not cause them any financial damage and will not reduce their financial returns, but rather It will support ease of payment for tenants who will not be able to pay large sums according to the annual payment systems in four installments, especially with school dues and other financial obligations.
Commitments
Tenant Hazem Ismail, the landlords and real estate companies, also demanded that tenants be given monthly payment facilities, instead of insisting on refusing to give discounts and imposing a payment system for four installments, indicating that with his salary being reduced in the company he works as a result of the effects of Corona, it became difficult for him to pay The value of three months in one payment, especially with multiple financial obligations, including those related to bank funds or school installments and others.
He emphasized that the monthly payment would ease the financial burden on him, and facilitate the payment of the rent.
Operational policies
For his part, General Manager of Awad Gargash Real Estate Company, Raad Ramadan, said that allowing monthly payments to tenants instead of paying in four installments depends on the operational policies of landlords and real estate companies, noting that one of the reasons for some companies' adherence to the refusal of the monthly payment is their association with obligations Financial to banks require obtaining liquidity during payment collection times.
Ramadan pointed to the possibility of having facilities from some companies or owners during the current circumstance as an exceptional circumstance, explaining that this depends on the ability of companies to convert their work mechanisms into monthly collection systems for payments.
contrast
In turn, the director of real estate at Al-Walid Investment Company, Mohamed Turki, said that there is a difference in the markets regarding the process of accepting the monthly payment, as there are a number of companies working on studying the case of each tenant separately, and according to the conditions of the tenants, they are granted payment facilities. .
Turki attributed the reasons for some real estate companies' refusal of the monthly payment demands, to the presence of bank and financial obligations on those companies that are compatible with the payment systems, in addition to allowing the monthly payment although it provides facilities to the tenants, but on the other hand it requires the companies to have different accounting systems than the applicable Currently, by intensifying the accounting work systems in the monthly collection, following up on the introduction of checks to banks, and the obligation of tenants to pay.
Flexible systems
In the same context, the director of the «W Capital» real estate company, Walid Al-Zarouni, considered that there are no significant barriers hindering the transformation of a large number of companies to allow tenants with monthly payment systems to face the repercussions of the spread of the Corona virus on them, especially since that system is not strange, as There are some companies that offer it, and there are real estate companies in several countries in the region that operate in it.
And that companies that follow flexible systems in this exceptional circumstance, and in a way that supports the tenants' position in the face of financial burdens, will have positive effects on their reputation in the market, and increase their attractiveness to attract new tenants.
Exceptional circumstances
The CEO of Somm Real Estate, Sufyan Al Salamat, said that the position of owners and companies regarding allowing monthly payment systems for rent varies from one company to another, but he pointed out that in the presence of exceptional circumstances such as the current conditions resulting from Corona, which Its effects are reflected on the entry and salaries of tenants, as it is natural that there is exceptional flexibility in granting some affected tenants monthly payment facilities, especially as they are appropriate to the circumstances of the current stage, which may reduce the financial burdens of tenants, and thus increase the chances of commitment to pay rents without faltering.
He added that there are companies that allowed monthly payment and others that converted payment systems to two months instead of three months, calling on other companies to take similar flexible positions if this does not conflict with their financial obligations and accounting systems.
Companies that study the case of each tenant separately, to be given payment facilities.