Rent in Dubai can now be paid via direct debit, according to a circular shared by the Dubai Land Department on Monday.
An announcement was made in July 2022 by Dubai Land Department (DLD) that tenants would soon be able to pay rent via direct debit using the Central Bank of the UAE’s Direct Debit System (DDS).
Dubai’s Ejari system, which is used for real estate rental in Dubai, is now ‘fully integrated’ with the Direct Debit System (DDS).
How can you pay rent in Dubai via Noqodi Direct Debit system (UAEDDS)?
According to the Dubai Land Department, the Direct Debit System (UAEDDS) will facilitate recurrent payments from residents’ bank accounts.
During the contract creation or renewal process, tenants and landlords can customize the rent payment schedule. Upon agreement, tenants can arrange recurrent payments via direct debit to landlords, according to a manual issued this week by DLD.
“This document is a manual to define the steps that are needed to be followed to set up a DDS in Ejari and Noqodi,” the DLD said.
So instead of cheques, the landlord may collect signed direct debit mandates from tenants.
The DDS allows tenants to sign an authorisation form for instalment payments. The Ejari-DDS link could be the “beginning of the phasing out of physical cheque payments”.
A better system for for landlords and tenants
The DDS benefits tenants, landlords, as well as property management companies. The landlords and property managers won’t have to deal with post-dates cheques, and tenants will have more flexible payment options.
Additionally, it is part of Dubai’s larger vision to become a paperless society.
What happens in cases of payment failure?
In cases of payment failure, Noqodi will make three retry attempts as per the manual. If the payment doesn’t take place, the tenant will be contacted.
If the payment still doesn’t happen, “legal action” will be taken. Real estate firms could also levy fines on the tenant.
The DLD manual states that ‘stop payments’ will not incur any charges. Dates of payment cannot be amended currently, but the facility will be made available in phase two.
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