Renters Have 3 Payment Options Available Through An App.
Since 2019, residents of numerous areas in Dubai have been able to pay their rent without a cheque. Managing 15 neighborhoods, Dubai Holding Asset Management handed out the payment option. When it released the “DubaiAM Life” app, according to a senior executive at the firm. Remraam, Layan, Ghoroob, Shorooq, Ghoroob Square, Dubai Wharf, Manazel Al Khor, and Al Khail Gate are among the communities serviced by the program.
Ahmed Al Suwaidi, managing director of Home Communities at Dubai Holding Asset Management, spoke to Khaleej Times. Following the announcement by Dubai authorities of a system. In which rental cheque payments are automated and digitized utilizing the UAE Central Bank’s Direct Debit System (UAEDDS). According to the agreement reached between Dubai Land Department (DLD) and Emirates NBD bank, tenants can choose from the program. Which eliminates the requirement to submit post-dated rental cheques.
“More than 21% of our residents pay (rents) entirely without using a cheque. As more people become aware of the advantages and ease that come with this digital option. Payments made using the app have generally increased dramatically this year. Nearly 87 percent of the payments made in FY 2021 in H1 2022 were done via apps, according to Al Suwaidi. Since the program’s implementation, the real estate asset management organization has gotten rid of nearly 10,000 checks.
The representative explained that there are three ways for residents to pay using the app. Post-dated checks, credit or debit cards, or paying their first installment with a card and the remainder with post-dated cheques. He claims, “The traditional cheque model is being replaced by direct debit with a variety of payment terms, and this transition is reflected in the app. Where residents can even use UAE Pass to sign their contracts and related documents.”
Monthly, bimonthly, and quarterly payments are all acceptable methods of rent payment. He noted that the rent payment without a cheque is optional. We acknowledge that post-dated cheques are still widely used in the area. Therefore, tenants who are less accustomed to the direct debit system may choose to pay by cheque instead. Al Suwaidi stated that there is a charge for both bounced rent cheques and unsuccessful direct debit transactions.
Advantages of Electronic Rent Payments
Digital payment methods like recurring credit cards and direct debit, according to him, “actually overall payment procedure for residents.” They do away with the need to individually manage post-dated cheques, lowering the stress that comes with it and storing all relevant data and papers in one handy location. Additionally, it permits greater transparency and security overall and offers more flexibility for both tenants and individual landlords or property managers like us, he continued.
When asked whether he envisions a time when rent cheques are obsolete in Dubai, Al Suwaidi responded. “Digital revolution is a fact influencing all businesses, including the real estate sector… I would not be shocked if, in the future, rent payments became outdated given how quickly technology is advancing and changing to better suit the demands of individual users.
As stated by our leadership, eliminating them will also be a significant step toward a paperless economy and support Dubai’s commitment to high-quality life and resident contentment.