Now tenants no longer have to submit post-dated rental cheques in Dubai. A new landmark agreement to this effect has been announced early this week, eliminating the need for tenants to submit post-dated rental cheques.
The new system is ‘readily available’ and can be accessed by ‘landlords and tenants’, revealed an Emirates NBD spokesperson to the media.
Landlords will now receive a one-time direct debit mandate signed by tenants, which allows Emirates NBD to debit the rental from the tenant’s account or credit card. The rental is recovered by the landlords using automated system, provided with the digital banking channel.
As per the deal signed between Dubai Land Department (DLD) and Emirates NBD bank, the rental cheque payments are automated and digitized using the UAE Central Bank’s Direct Debit System (UAEDDS). It benefits landlords, tenants and property management companies and, eliminates the need to manage post-dated cheques manually.
Annual rentals in Dubai are usually paid in two, four or six instalments through post-dated cheques. Now, to avail the new service, the landlord will have to visit Emirates NBD and register for the service. The landlord will collect only signed direct debit mandates from tenants, instead of cheques, and all those mandates will have to be registered with the help of the landlord’s sponsoring bank.
The service is not applicable to only Emirates NBD customers. Landlords can register for the UAEDDS service with any bank that offers it.
However, Emirates NBD is one of the major banks with digital capabilities offering end-to-end direct debit service. While landlords can register for this service through their Emirates NBD account, tenants can use accounts or credit cards of any bank in the UAE.