Dubai tenants will now have to go through credit checks before renting properties. Dubai Real Estate Centre (DREC), a property development and management company, has set a new benchmark in the real estate sector of the emirate. It is planning to use scores and reports compiled by Al Etihad Credit Bureau (AECB) in order to assess tenants’ eligibility and financial strength. DREC, which operates under the baner of ARM Holding, has become the first private real estate company in Dubai to use AECB’s reports. The company currently manages more than 3,200 residential and commercial units across the UAE.
Those renting a property for the first time or renewing their existing tenancy contracts with DREC will need to maintain good credit scores. Tenants who have better scores will be given more competitive rental payment options. Chief Executive ARM Holding, Mohammad Al Shehhi said, “DREC will use the AECB credit reports and credit scores to better assess the risk associated with new tenants fulfilling their payment obligations and renewals of existing tenancy contracts.”
He added, “The DREC’s establishment of this quality control and risk assessment standard is demonstrative of our overall approach to ensure equitable and ethical business practices and protect our investors.” He said this move would help DREC work with “like-minded organisations.”
Chief Executive AECB, Marwan Lutfi said, “We believe this is the start of a positive transformation within the property rental sector whereby tenants will undoubtedly receive added benefits for maintaining a high credit score and a good credit history. Mature international real estate markets use credit scores as a key factor when determining renter’s eligibility and we are delighted that DREC is exhibiting such maturity, which will ultimately benefit their portfolio of clients in Dubai.” The AECB assesses credit risks by collecting information on UAE residents from various sources, such as banks, financial institutions and telecom operators.