Fintech disruptor, Cardoo, known for its success in the car rental sector, is set to shake up the real estate market in the UAE. The company’s revolutionary approach introduces deposit-free short and long-term rentals, aiming to simplify the rental process for both tenants and property owners.
In Dubai and the UAE in general, most properties require a deposit (usually for 6 months or 1 year) which is quite expensive for most people.
This move will enable more people to rent better properties and in turn provide property owners with a higher demand.
Let’s discuss more.
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The Deposit-Free Model
Cardoo’s innovative model eliminates the burdensome upfront deposits typically associated with renting a property. Property owners will receive pre-paid cards to cover payment risks, streamlining the process and reducing headaches associated with rent collection and tenant dealings.
A Win-Win Situation
Industry observers predict that this model will be a game-changer, benefiting both tenants and property owners. The elimination of upfront deposits is expected to lead to increased demand for rentals, allowing tenants to consider higher-end properties. This, in turn, boosts rental income for property owners.
Founder’s Vision
Alisher Murtazaev, Founder and CEO of Cardoo, expressed the company’s vision to revolutionize the house rental business by making upfront deposits a thing of the past. The startup plans to commence operations in the real estate sector with a focus on vacation rentals, gradually expanding into other segments.
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Immediate Impact
Drawing from the company’s experience in the car rental segment, Murtazaev anticipates an immediate 20% spike in demand within the first month of implementing the deposit-free model. Over 50% of customers are expected to upgrade their property preferences, resulting in increased profits for property owners.
So, those who were not able to rent apartments in Marina or Downtown will be able to do so without draining their bank accounts.
Challenges Eliminated
The traditional deposit system often leads to disputes between tenants and property owners, especially regarding damage claims. Cardoo’s deposit-free model eradicates these challenges, offering a hassle-free experience for both property owners and tenants.
UAE and MENA Expansion
Cardoo’s foray into the UAE’s real estate market aligns with its primary focus on the UAE and the broader MENA region for the next two years. The company aims to bring about significant change in payment processes, redefining convenience and security in the property rental segment across the region.
Seamless Experience
Murtazaev emphasized that Cardoo’s entry into the property rental segment aims to craft a seamless and stress-free experience for all involved. The startup’s success in the car rental market, working with over 90 clients in Dubai, positions it as a key player in reshaping the rental landscape.
Conclusion
Cardoo’s introduction of deposit-free real estate rentals in the UAE signifies a paradigm shift in the rental market. As the startup leverages its successful model from the car rental industry, both tenants and property owners can anticipate a more straightforward, transparent, and efficient rental experience in the ever-evolving Dubai real estate landscape.
I will be trying out this service the next time I will be in Dubai and provide feedback.
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