Residents of Abu Dhabi will soon have the option to break down annual rent into monthly payments instead of providing one or more post-dated cheques, thanks to the launch of a new digital payment platform supported by the emirate's real estate authorities.
Launch of the RNPM Service
Advanced Real Estate Services (ADRES), which collaborates with the technology company UAE PropTech Keyper, announced that pilot projects have already begun with three of the largest landlords and property managers in Abu Dhabi. The first residents and landlords are expected to be connected to the system in the fourth quarter of 2026.
The service, named Rent Now, Pay Monthly (RNPM), has the support of the Abu Dhabi real estate authorities and aligns with the emirate's goal of fully digitizing rental payments while offering residents who meet the requirements the option to spread the annual rent over months.
Operating Mechanism and Fees
Under this model, tenants will make monthly payments using a debit or credit card through the platform, while landlords will continue to receive income according to the lease agreement terms. ADRES clarified that this is a payment facilitation model, not a credit service, so it does not fall under the scope of the UAE Central Bank's Debt Burden Ratio (DBR).
A service fee ranging from 4.75% to 12% of the annual rent will be applied, with the amount depending on factors such as the initial payment terms and tenant eligibility.
Potential Market Impact
Real estate specialists believe that this initiative could increase rental affordability, especially for young professionals and newcomers in Abu Dhabi who often find it difficult to make large upfront payments. Simriddhi Singh from Scope Hauser Real Estate noted that the concept is likely to be more beneficial to tenants than to landlords, but she believes owners will adopt it if the payments remain reliable.
She added that this model could be particularly useful for residents working on project contracts or those who prefer not to tie up large sums of money in advance. Abdulrahman Ibrahim Abu Faraj, CEO of Scope Hauser Real Estate, stated that the platform can significantly expand the pool of potential tenants by removing one of the biggest barriers to renting.
He emphasized that many tenants do not have large amounts of cash available. For example, if an apartment rents for 100,000 dirhams, and the landlord only accepts two payments, the tenant will need 50,000 dirhams upfront. This sometimes forces people to look for cheaper housing or landlords offering more flexible payment terms.
Abu Faraj noted that the system could be particularly attractive to young professionals looking to rent in prestigious areas like Saadiyat Island, where annual rent often exceeds 150,000 dirhams, as well as to expats moving to the capital who may not yet have immediate access to their savings.
Implementation Questions Remain
Despite welcoming the initiative, brokers stated that more details are needed before implementing the system. Abu Faraj highlighted one key question: how disputes will be resolved if tenants stop making monthly payments after landlords have already received the agreed rental amount.
He suggested that an escrow-like mechanism would be necessary to protect both parties. He added that the process is not yet fully clear, but they have seen successful operation of similar systems in other countries. He also advised that the platform should integrate with existing Abu Dhabi real estate systems for proper record-keeping of rentals and resolving any future disagreements.
The cost of the service may also influence its adoption. While Singh believes a commission of around 4.75% is unlikely to deter many tenants, Abu Faraj warned that fees approaching 12% could make this option less appealing. He commented: 'If someone pays 100,000 dirhams in rent, it effectively becomes 112,000 dirhams.' He concluded that at a higher commission rate, it would definitely deter some people, but he believes many tenants would still agree to a moderate payment in exchange for improved cash flow and the ability to avoid large upfront rental payments.
