The Dubai real estate industry has integrated Ejari, a new online registration system, with the Central Bank’s direct debit system, allowing landlords to deduct rent automatically from tenants’ accounts rather than using post-dated checks. Both the landlord and tenant will agree on the payment method, which will be monthly, quarterly, or semi-annual, and it will be included in the lease agreement. HP Aengaar, CEO of Asteco, suggested that monthly direct debit payments would reduce the likelihood of returned checks and provide landlords with regular payments. However, according to Better homes, single cheque payments are becoming more common, with a 6% annual increase in Dubai.
The payment process for both landlords and tenants could be streamlined with the connection of the Ejari system and the Central Bank’s direct debit system. By doing away with post-dated checks, there is significantly less chance that a check will be returned owing to mismatched signatures or overwriting. This gives landlords a more dependable and safe way to get paid, which might make them more at peace with the new arrangement. Additionally, the flexible payment schedule enables tenants to select a payment frequency, such as monthly, quarterly, or half-yearly, that best meets their financial flow.
In particular, in places where rents are rising, this new methodology offers a solution for tenants who may have found it difficult to keep up with the conventional method of post-dated checks. Tenants can better manage their financial commitments with monthly direct debit payments, which might result in a stronger bond between them and their landlords.
In conclusion, the integration of the Ejari system with the direct debit system of the Central Bank offers a more practical and safe means of payment for both landlords and tenants. The two parties’ relationship may be more cordial as a result of the payment schedule’s flexibility and the guarantee of timely payments.
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