Many
people include paying rent as their first expense when creating their monthly
or annual budget. Have a discussion with your landlord about alternate methods
of paying your rent if post-dated checks are a source of concern for you.
There
are at least five distinct methods of paying rent in Dubai, however, whether
one is available to you or not depends on your landlord and the forms of
payment they accept. Here is a thorough explanation of every method for paying
rent in Dubai.
Postdated cheques
Although
there is a push to implement direct debit payments, James Perry, managing
director of Dubai-based real estate firm haus & haus, stated that postdated
checks are still the most typical form of rental payment in Dubai. Recently,
the Dubai Land Department and Emirates NBD partnered to use the Central Bank of
the UAE's Direct Debit System (UAEDDS) to automate and digitize rental cheque
payments.
The
number of cheques you must produce varies depending on your landlord, while you
can pay with a single check or numerous ones (up to 12 for a monthly
installment plan).
Bank transfers
Bank
transfers are also favoured, especially by landlords who can be headquartered
outside the UAE. Postdated checks are still the standard in Dubai. The head of
the leasing division of the property management firm Espace Real Estate in
Dubai, Emma Jayne Main, discussed all the factors that were making bank
transfers more popular among landlords than postdated checks.
"Checks
occasionally have problems, such as mismatched signatures and the potential for
bounced checks. Additionally, the bank will only give the check back to the
landlord if the owner is out of the country and the payment is due.
Credit cards
Another
option is using a credit card, but this is less common because landlords and
property management organizations need to be authorized to handle electronic
payments.
"You
can use your credit card to make a payment, but it relies on the property
management company's license," Main added.
Direct Debit
Direct
debit is being implemented in Dubai by the Dubai Land Department (DLD).
However, several property agencies, developers, and real estate firms in Dubai
already permit renters to pay rent by direct debit.
Cash
“Cashpayments for rent are also accepted, but only in very small amounts. The first
payment is typically made in cash because most landlords prefer that it be made
before handover. To ensure that the landlord has received the funds, the
initial payment must be made with a check that is dated a few days before to
the start date,” according to Main.
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