Dubai, October 04: A growing number of residents are looking for short-term tenancy contracts amid widespread job insecurity, estate agents say.
The familiar system of year-long leasing is giving way to an increasing number of short-term tenancy contracts, as residents worry how they will pay the rent if they suddenly lose their jobs.
A single bounced cheque can often spell jail, a fact Asian expatriate Adhil Khan is well aware of.
“Everyone is concerned about the future of their jobs. That is why I am also looking for a place to live for the short term,” he said.
“Once you are in a short-term contract, you have more options.”
In the last two months, estate agents have noticed a spike in the number of people looking for short-term rentals.
By catering to the new demand, property firm Better Homes has boosted its occupancy rates from 65 per cent to 93 per cent, said Martha Fitzharris, assistant operations manager.
“A lot of our clients want to rent on a month-to-month basis because they have either lost their jobs or their current jobs are unstable,” she added.
A YouGov survey this April found that 74 per cent of professionals working in Dubai were concerned about job security.
Vincent Easton, director of sales for Engel and Volkers, said that tenants were less willing to give a year’s worth of rental cheques to a landlord — even if there was the possibility to pay in 12 instalments. “People are nervous about putting cheques down that they may not be able to honour if they lose their jobs,” he said.
“Instead they would rather take up two- or three-month contracts, even if it is at a premium.”
Websites such as Dubizzle are filled with adverts from prospective tenants seeking rental contracts for two or three months.
Several of those contacted by Khaleej Times said that they were either suffering job insecurity or had planned to leave the country in less than a year.
Lynette, an American mother, said that although her annual contract had just expired, her husband was due to be relocated out of the country in the next four months. “If there was no short-term rental option, we would have to leave straight away,” she said.
However, others were looking for temporary places to live because of delays in construction of homes that they had bought.
One resident, Ellouise Cole, said that she was forced to rent for temporary periods because she wasn’t sure when her property in Victory Heights would be completed.
“I have received five letters from the developer so far, each delaying the completion date,” she said. “At the moment I don’t know when it will be ready; it could be January or February.
“But for now I can’t be tied into a year-long contract.”
–Agencies