Digital Payments for Rent is finally coming to the Dubai Property market.
We have been collecting rent on behalf of clients for over 18 years and the standard way rent is paid in Dubai is 1-4 cheques in advance. Very rarely have landlords accepted 12 pre signed cheques for rent and very often tenants in Dubai are paying the full year rent in advance in one cheque.
This is all set to change with a new joint initiative from Emirates NBD and the Dubai Lands department.
Although it has been standard practice in most European property markets for decades the ability to set up what ostensibly will be a direct debit from the tenant account to the landlord account is going to make a huge difference to the Dubai rental market.
Headlines often focus on the uber expensive rents you can find in Palm Jumeirah or Emirates Hills where rents can be as high as AED 3-5 million per annum and of course these tenants can pay in one go but in reality the majority of the market is for the working family who will appreciate being able to make these guaranteed monthly payments direct from their accounts shortly after their salaries go in.
Once this direct debit is set up then both parties know that there will be no further issues and administration errors that may cause problems. For example irregular signatures or lost cheques can add an enormous amount of stress and wasted time so anything that streamlines this process is going to be a huge benefit for all parties and I am sure my property management department cannot wait to start implementing it.
Another bonus to the new system will be the banks opening accounts for non-resident landlords enabling them to be independent of third parties such as managing agents. Although Edwards & Towers property management has been running for over 18 years and our credibility is high in the market it goes without saying that not all management companies are as ethical. This new system will give many landlords peace of mind that their rent is not in danger of evaporating and a confident market place can only be good in the long run as investors will increase their investments if they are assured of rents being paid in a timely fashion.