Tenants now can pay their Rents Directly through Noqodi Ejari Direct Debit Service (DDS)
EJARI (Dubai’s Real Estate Rental online registration system) is now “fully integrated” with a direct debit system (DDS). As reported last year (July 2022) by Khaleej Times , the Dubai Government’s open about the new scheme. This kind of system benefited both landlords and property management companies – who will no longer have to manage post-dated cheques manually – as well as tenants, who can avail of flexible payment plans.
The automated and digitized using the Central Bank of the UAE’s Direct Debit System (UAEDDS), means that tenants can make payments through their bank accounts instead of issuing cheques. And allows the Tenants to sign an authorisation form for instalment payments.
His Excellency Sultan Butti bin Mejren, Director General of DLD (Dubai Land Department) stated during his interview last July 2022 and quoted, “The real estate industry in the UAE is one of the best and most competitive in the world, and as part of our mission to present a regulatory environment in service of tenants and property owners, we have partnered with Emirates NBD in line with our efforts to fully digitalise our services as per the Dubai Paperless Strategy. Such collaborations will help facilitate and streamline the processes involved in the property market by employing progressive machinations on the path towards replacing the legacy systems in place.”
This Initiative that the Dubai Government’s implemented will attract more Investors from overseas, where Individual Investors from Overseas looking to purchase property in Dubai can also open non-resident savings accounts with Emirates NBD, and manage purchase and rent collection through them.
A Real Estate experts once said that this Ejari-DDS link, is the “beginning of the phasing out of physical cheque payments”. Dubai is continuing to move forward with current times while implementing a solid regulatory system in place.” The system also aligned of the Dubai 10X initiative that was mentioned before by the Dubai Government’s vision “Go for PaperLess and Ecosystem campaign.
Dubai’s annual rent are typically paid in two, four, six or even 12 months instalments using post-dated cheques.
“Obviously, for a very long time, cheques have dominated the payment system, with direct debits not previously being available. In other markets globally, we see direct debits dominate the payment methods in the rental market, so we expect a positive impact here, both for tenants and landlords. Importantly, landlords can also feel more secure, with each transaction having to be approved by the tenants’ bank, which is connected to the Central Bank”. -Real Estate Expert Property Head said.