Dubai tenants now have an alternative to paying rent through post-dated cheques. The Dubai Land Department (DLD) has introduced the option for tenants to make rent payments via direct debit, as stated in a circular issued on January 27, 2023.
The DLD has integrated the registered tenancy contract, Ejari, with the Noqodi Direct Debit system. Noqodi serves as the digital payment channel for Dubai government services, while the Direct Debit System, operated by the UAE’s Central Bank (UAEDDS), facilitates automated payments through tenants’ bank accounts.
This new payment process aims to provide tenants with a more convenient option and reduce the reliance on physical cheques, according to real estate experts interviewed by Gulf News. The integration of Ejari with UAEDDS could lead to wider implementation, benefiting tenants, landlords, and property management companies.
Thomas Poulson, the leasing director at haus & haus Real Estate, highlighted common issues associated with cheques, such as bouncing due to irregular signatures and mistakes in the wording of names and numbers. Additionally, the physical exchange of cheques can be inconvenient when landlords are traveling or residing abroad. An automated system like direct debit offers an efficient solution to these challenges.
To transition to direct debit rent payments, tenants currently using post-dated cheques can make the switch during the contract renewal process. Property managers will collect the necessary payment information and provide tenants with an email containing a link to update their bank details and sign the Direct Debit form. Once completed, the form will be uploaded and sent to the bank for confirmation, explained Niral Jhaveri, head of property management at Betterhomes.
Regarding rent payment installments, Jhaveri noted that the frequency of installments would be determined through mutual agreement between tenants and landlords. It can align with the existing schedule of physical cheques or follow a different arrangement established between the parties involved.
Dubai tenants now have the option to streamline their rent payments through direct debit, offering a more convenient and efficient method compared to traditional cheque payments.