Simplifying real estate: How to make the switch from cheque to direct debit

Simplifying real estate: How to make the switch from cheque to direct debit

Thursday 23 February 2023Wed 16 Feb
Simplifying real estate: How to make the switch from cheque to direct debit

For most of us living in Dubai, when it’s time to pay rent, it can feel like we travel years back in time to the days of writing and cashing cheques.

Cheque payments have simply just always been the in thing for landlords - but as you know, the world has changed and Dubai is ready to keep up.

Let us catch you up on the new direct debit system, recently introduced by the Dubai Land Department in collaboration with the Central Bank.

You’ll be glad to know it’s super simple!

Your questions answered:

What is Ejari direct debit?

Ejari Direct Debit is a payment method that allows you (the tenant) to pay rent automatically every month through your bank account.

The Ejari system is a government-mandated system that registers all tenancy contracts in Dubai.

Read: Dubai's rental rates at an all-time high: Are mortgages a better option?

How do I make the change?

To use Ejari Direct Debit, you must first sign up for the service with your landlord or real estate agent - which can usually be done quickly by contacting them directly. Once signed up, you’ll need to provide your bank account details, and then your rent payments will be automatically deducted each month on the due date.

Simple, easy and hassle-free right?

What if my account has insufficient funds? Can I risk any penalties?

If your payment is declined more than three times due to insufficient funds, you face the risk of a late payment penalty or even legal action, if not resolved.

It's important to ensure your account is set up for automated payments to avoid any issues.

So, I can still use post-dated cheques?

Yes, but keep in mind that while many landlords may be accepting post-dated cheques as a form of payment, it is becoming less common.

It's important to check with your landlord or property manager to confirm your preferred method of payment to avoid any irregularities.

This new system is without a doubt the way forward for paying rent - and it’s something we know residents have been eager for, for many months!

If you have any questions, we have a team of experts who can guide you through the process.

Get in touch with us today - click here.

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