For most tenants, paying rent through post-dated checks has been the norm. But a new service through direct debit is a more efficient way of doing this. Here’s what you should know about it.
Are you still using post-dated checks to pay your monthly rent in Dubai? A new system introduced by the Dubai Land Department (DLD), in collaboration with the UAE Central Bank, has streamlined this process through a direct debit feature that was introduced this year.
Dubai’s Noqodi Ejari service now allows tenants to pay their house rent through direct debit – and it’s designed to be a safer and more convenient payment system for rents. Here’s what you should know about it and why you should consider using direct debit for your rental payments.
The system can be set up easily according to the installment terms agreed by the tenant and landlord. Once it’s set up, recurring payments are automatically deducted from the tenant’s account.
Instead of writing and physically handing over post-dated checks, you can now set up automatic payments from your bank account through the Ejari direct debit system. This makes the process safer and more efficient as it eliminates various problems associated with post-dated checks such as:
With the auto-debit system, tenants don’t have to worry about security-related issues as all transactions are automatically executed and logged by the system. Landlords and property management companies, on the other hand, no longer have to bother with collecting and storing physical checks and are assured that all payments are deposited on time.
Tenants need to ensure their accounts have sufficient funds during the due date to avoid any issues. In cases where there are insufficient funds, the Noqodi system will attempt to take the payment three more times. If all attempts fail, the tenant will be notified and may be subjected to fees or other legal action.
It is understandable that for most tenants, the post-dated check is still their preferred mode of payment. But given the trend in online payments nowadays, this system may be gradually phased out. Visit Noqodi’s official website to sign up for this service and start enjoying the benefits of a more efficient, secure, and flexibility way of paying your monthly rent.
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