Have you ever faced issues with rental cheques in Dubai? Worry no more! Tenants in Dubai now have the option to pay their rent through direct debit, thanks to the integration of the Ejari system with the Noqodi Direct Debit system. This guide will take you through this new payment method and its benefits.
Ejari, the registered tenancy contract system in Dubai, has recently been linked with the Noqodi Direct Debit system. This digital payment channel is designed for Dubai government services and is powered by the UAE’s Central Bank’s Direct Debit System (UAEDDS). The integration of Ejari with Noqodi allows UAE residents to automate their rent payments directly from their bank accounts, making the process more convenient and efficient.
Real estate experts believe that this new payment method will greatly benefit tenants by reducing the need for physical cheques. Previously, the Direct Debit System for rents was announced in July 2022, but it was limited to certain banks and properties with compatible systems in place. With the integration of Ejari and UAEDDS, this payment option is expected to become more widely available.
Thomas Poulson, the leasing director at haus & haus Real Estate, explains that issues such as bounced cheques, irregular signatures, and incorrect information on cheques can cause inconveniences for tenants, landlords, and property management companies. Moreover, tenants who have landlords living abroad or frequently traveling might find the physical handover of cheques challenging. The automated rent payment system addresses these issues effectively, making the process more efficient.
If you’re wondering when you can start paying your rent through Direct Debit, Niral Jhaveri, head of property management at Betterhomes, clarifies that tenants can switch from post-dated cheques to direct debit payments at the time of their contract renewal. During the renewal process or when registering a new contract, property managers will input the necessary payment information. Tenants will then receive 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.
As for paying rents in monthly installments, Jhaveri states that such an arrangement would need to be mutually agreed upon by both the tenant and the landlord. The frequency of installments would be the same as the physical cheques, or as agreed upon with the landlord. This means that while direct debit provides a more convenient payment method, tenants must still negotiate the terms of their installment plan with their landlord.
