It's a high moment to stop hunting down rents and take advantage of this automated rent collection method to enhance operating efficiency and improve client satisfaction.
In a new agreement between Dubai Land Management and Emirates NBD, rent cheque payments will soon be automated and digitized using the UAE Central Bank's Direct Debit System (UAEDDS), meaning tenants don't need to submit deferred rental cheques. Instead, they can make payments through their bank accounts instead of issuing cheques.
On the other hand, landlords can receive a one-time direct debit authorization signed by tenants, allowing Emirates National Bank Dubai to deduct rent from the tenant's account or credit card. In addition, landlords can recover rent using the automated system with a digital banking channel.
"Emirates NBD is delighted to partner with Dubai Land Department on these strategic initiatives that will help in providing landlords and tenants with an easier, automated rent collection and management system as well as facilitate property purchases by new non-resident investors" said Hesham Abdulla Al Qassim, Vice Chairman and Managing Director of Emirates NBD.
This is not the first time that Dubai tenants have been able to pay their rent through direct debit or online banking. In 2018, Real Estate Services Dubai Asteco provided a digital payment service to tenants that allowed them to pay rent through direct debit after collaborating with NBF.
This method will benefit owners and property management companies on the one hand, as they will no longer have to manage old checks manually.
Furthermore, tenants will benefit from flexible payment plans, which also help them manage the rental budget better along with other monthly expenditures.
Besides, new arrivals to Dubai will also benefit, as it will be easier to rent a property because they won't have to wait for a checkbook to be issued.
The new initiative aligns with the Dubai Government's vision of paperless ecosystems and the Dubai 10X initiative.
To benefit from this service, the owner needs to go to Emirates NBD and register for the service. Then, instead of collecting cheques, the owner will manage the direct debit authorizations signed by the tenants and register all these mandates with the assistance of the sponsoring bank.
Owners can also register for the UAEDDS service with any bank that provides the service, not just Emirates NBD. This service is considered non-mandatory. However, the system provides automatic, hassle-free, and reliable cheque alternatives.
Emirates NBD also revealed that foreign investors looking to buy properties in Dubai would be able to open a savings account for non-residents in the future. This will help facilitate the real estate purchase and allow them to pay the property manager or collect rent appropriately. In addition, overseas real estate investors will get the support of a relationship management team to help them open their accounts.
Abdullah AlAjaji, Driven Properties founder and CEO, said: "If this initiative will not affect any legal proceedings for unpaid rents and is as strong as filing a case for a bounced cheque; then, landlords will prefer to adopt it to avoid issues such as irregular signatures, misplacement of cheques, or not depositing them on time."
A date for the launch of the new digital system has not been given.
Stay tuned to the Driven Properties blog for more UAE updates and achievements this year and beyond.