A New Direct Debit Mechanism Allows Tenants To Agree On Monthly Rent Payments

  • by admin
  • 1 month ago
  • Dubai Real Estate, Real Estate Dubai,
  • 1
Direct Debit Mechanism

The Revised Rental Agreement Will Result In Monthly Or Quarterly Payments Becoming Increasingly Prevalent.

Dubai has integrated the Central Bank’s direct debit system with the Ejari real estate online registration system. Enabling landlords to debit rent straight from the tenant’s account and do away with the requirement for post-dated checks. However, a major concern for tenants who make monthly, quarterly, or semi-annual payments is whether they will keep using their current form of payment.

According to real estate agents and property management companies, landlords and tenants will mutually agree on a way that works for both of them. Some business leaders predict that the new method will make monthly or quarterly payments more typical. The frequency of payments must be agreed upon by the parties and is a component of the leasing agreement, according to HP Aengaar, CEO of Asteco.

Direct debit mandates for both monthly and quarterly payments have been implemented. We have urged landlords to think of the direct debit mechanism. As being well suited for monthly payments because it lowers the likelihood. That cheque will be returned owing to inconsistent signatures, overwriting. Moreover, the dreaded necessity to buy a new chequebook, according to Aengaar.

Monthly direct debits will lessen some of strains on payment duties for renters in regions where rents are rising noticeably. In addition, we believe for many landlords, the guarantee of regular payments being received is a win for both sides. He said. Betterhomes claims that single cheque payments are increasing since landlords now have more control, with a 6% annual increase in Dubai.

The advantage of this approach over the European or UK models. According to Allsopp & Allsopp’s head of property management, Anisha Sagar, is that the direct debits are established by the agreement reached on the payment schedule here between owner and tenant. He thinks the new system would make landlords feel more at ease.

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