Paying Rent by Direct Debit in Dubai 2024

Do you know that paying rent in Dubai through post-dated cheques is not a necessity? Yes, you heard it right. Dubai Land Department (DLD) always makes efforts to protect the rights of landlords and tenants, and one such initiative is the payment of rent through direct debit. DLD has integrated the registered tenancy contract (Ejari) with the Noqodi Direct Debit system. It is a more convenient system to pay rent, and experts anticipate it will reduce the need for physical cheques. So, let's explore this new system and how it will benefit the tenants and landlords.

What is the Noqodi Direct Debit system?

Noqodi is a digital payment system for Dubai's government services, and the Direct Debit System (UAEDDS) is a service by the UAE Central Bank that helps residents set up automatic payments from their bank accounts for recurring bills.

How to Pay Rent via Ejari Direct Debit?

Register with Noqodi e-wallet to start paying rent via Ejari Direct Debit. Follow these steps:

• Go to Noqodi's official website
• Click "Sign Up"
• Choose "Personal" account setup
• Fill in the required information
• Provide a valid mobile number and email to link your account to
• Access your new Noqodi account

Once registered, the tenant will receive an email with a link to update their bank details and sign the Direct Debit form. The form will then be sent to the bank for confirmation.

Important Consideration

The Ejari Direct Debit system can be used when setting up a new tenancy agreement or at contract renewal. The tenant and landlord will agree on the recurring payments made during the tenancy, much like the post-dated cheque system. So, there is still flexibility regarding the number of payments a tenant will make. This means that the Ejari Direct Debit can be set up to take the rent in 2, 4, 6 or 12 instalments. The frequency and date of payments cannot be changed once the tenant and landlord agree. However, this added flexibility is expected in future.

Common Issues with Post-dated Cheques

Some common issues with the post-dated cheques which lead them to bouncing are:

• Irregular signature
• Incorrectly written or formatted wording of name
• Numbers on cheque
• Insufficient funds
• Need to hand cheques physically

The Ejari Direct Debit system is one solution to all the above problems.

Benefits of the Direct Debit System

The Noqodi Direct Debit System provides several benefits to tenants, landlords, and property managers.

• It modernises and streamlines the rental payment system.
• It eliminates any worries tenants might have about safely storing their checks until they are cashed.
• Landlords and property managers don't need to store physical checks or worry about depositing them on time.
• Tenants won't have to worry about presenting physical cheques, having their signatures match every time, or not having a chequebook.
• It is a safe and secure payment method.
• It reduces the need for eviction notices as the payments are transferred automatically.

Frequently Asked Questions

• Can I pay rent through a prepaid debit card?

  Yes, you can pay rent through a prepaid debit card.

• Can I still pay via cheque, or has DLD terminated this option?

  Yes, you can still pay your rent by cheque. Many landlords in Dubai still accept post-dated cheques.

• Are rental cheques going to phase out?

  Cheques were the main way to pay for a long time, and direct debits weren't an option. However, in other countries, direct debits are now the main payment method for rent, and we expect this will be a positive change in Dubai, too. Landlords will also feel safer because each payment must be approved by the tenant's bank, which is connected to the Central Bank.

• What happens if a tenant misses their payment because of a low account balance?

  In such an instance, three payment attempts can be made vis Noqodi. If all the attempts fail, the tenant can be contacted, and legal action can be taken against him if the issue isn't resolved.

Conclusion

The direct payment system has made renting faster and easier for everyone. As time passes, we expect the Noqodi Direct Debit system to add more features and make the system even more flexible. Most expats are used to direct debits from their home countries and find writing and tracking physical cheques difficult. DLD's initiative is great for property managers and landlords because it will reduce paperwork and manual work.