The Dubai Land Department (DLD) announced on January 27 that tenants in Dubai can now pay their rent by direct debit.
As the registered tenancy contract, Ejari, has now been integrated with the Noqodi Direct Debit system, this will be applicable to tenants in Dubai, claims DLD. The central bank of the UAE’s Direct Debit System (UAEDDS) offers UAE citizens an automated payment option to enable recurring payments from their bank accounts. Noqodi is the digital payment channel for Dubai government services.
The new procedure will be more practical for tenants and is anticipated to lessen the use of actual cheques.
Will rental payments now only be paid via direct debit?
When the Direct Debit System for rent was first introduced by DLD in July 2022, it was only open to tenants who had bank accounts with specific financial institutions or who resided in homes where the developer or property management company had put in place systems to make it possible for tenants to pay their rent via the Direct Debit System.
The Ejari system may be used more widely now that it is connected to UAEDDS because it would be a more practical choice for renters, landlords, and property management firms.
Cheques that bounce due to incorrect signatures and those with names and numbers wrongly written or formatted on them are both frequent problems.
Additionally, it might be troublesome for tenants when landlords are absent or live overseas because cheques must be physically delivered.
All of the mentioned problems could be effectively resolved with an automated system for collecting rent payments.
When can one start paying rent through Direct Debit?
You can only switch to direct debit payments if you are already paying your rent with post-dated cheques and your lease is up for renewal.
Property managers will be able to submit all the required payment details when establishing a new contract or renewing an existing one. A link to amend the tenant’s bank information and sign the Direct Debit form will then be sent to them through email. The form will be finished, uploaded, and forwarded to the bank for approval.
Will one be able to pay rent in monthly installments?
The installment plan must be agreed upon by both the landlord and the tenant.
The installment payments will be made at the same intervals as physical cheques or as specified by the landlord.
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