How Dubai tenants can pay rent through direct debit – here’s how
You don't need to always pay for rent via cheques - here are the other options available
Dubai: If you are a tenant in Dubai, did you know that you don't necessarily have to pay the rent through post-dated cheques? Tenants in Dubai can also pay their rent via direct debit, according to a circular issued by the Dubai Land Department (DLD) on January 27, 2023.
According to DLD, the registered tenancy contract - Ejari - has now been integrated with the Noqodi Direct Debit system. Noqodi is the digital payment channel for Dubai government services and the Direct Debit System by UAE's Central Bank (UAEDDS) provides UAE residents with an automated payment method to facilitate recurrent payments from their bank accounts.
According to real estate experts who spoke with Gulf News, the new process will be a more convenient option for tenants and is expected to reduce the presence of physical cheques.
Will rental payments now only be paid via direct debit?
The Direct Debit System for rents was first announced by DLD in July 2022, but it was only available to tenants who had accounts with certain banks or were living in properties, where the developer or property management company had systems in place to facilitate rental payments through the Direct Debit System.
Thomas Poulson, the leasing director at haus & haus Real Estate, said that with the Ejari system now being linked with UAEDDS, it might be implemented at a wider scale, as it would be a more convenient option for tenants, landlords and property management companies.
“Common issues with cheques include them bouncing due to irregular signatures, as well as incorrectly written or formatted wording of names and numbers on cheques,” Poulson said.
Also, since cheques must be physically handed over, it can be inconvenient for tenants who have landlords who are travelling or live abroad.
“An automated system to make the rent payments would be an efficient solution to all of the above common issues,” he said.
Common issues with cheques include them bouncing due to irregular signatures, as well as incorrectly written or formatted wording of names and numbers on cheques.
When can I start paying rent through Direct Debit?
According to Niral Jhaveri, head of property management at Betterhomes, if you are currently paying your rent with post-dated cheques, you can only switch over to direct debit payments at the time of contract renewal.
“Property managers will be able to enter all the necessary payment information during the renewal of tenancy contract, or when registering a new contract. The tenant will then receive an email containing a link to update their bank details and sign the Direct Debit form. Upon completion, the form will be uploaded and sent to the bank for confirmation,” she explained.
Property managers will be able to enter all the necessary payment information during the renewal of tenancy contract, or when registering a new contract. The tenant will then receive an email containing a link to update their bank details and sign the Direct Debit form. Upon completion, the form will be uploaded and sent to the bank for confirmation.
Will I be able to pay rents in monthly installments?
According to Jhaveri, the installment plan would need to be mutually agreed upon by the tenant and the landlord.
“The frequency of the installments will be the same as the physical cheques or as agreed upon with the landlord,” Jhaveri said.
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