The rental sector of Dubai’s real estate industry is quite established. Nevertheless, tenants prioritize paying their rent. In order to control the rental market, the Real Estate Regulatory Authority (RERA) and the Dubai Land Department (DLD) have implemented a number of measures, including payments for rental homes in Dubai.
In Dubai, tenants have multiple options for paying their rent at home. Before we go over all the options available to tenants in the Emirate for paying rent, let’s clarify what a fixed contract and no contract are.
DIFFERENT RENTAL CONTRACTS IN DUBAI
The kind of lease agreement you have signed will determine the amount you pay for your Dubai home. The RERA tenancy regulations in Dubai let landlords and renters to include particular provisions about rental payments in their agreements.
A binding contract makes it easier to guarantee a positive working relationship between tenants and landlords. In addition, the renter is accountable for timely rent payments and for using the property’s rights.
In Dubai, two forms of rental agreements are typical. Let’s study about them and how these contracts specify how to pay for rentals.
FIXED CONTRACT
In Dubai, the majority of houses have fixed rental agreements. Tenant and landlord agree to terms and conditions under this contract for a predetermined period of time. Nevertheless, the signed lease agreement must be registered on Ejari by renters or landlords.
Tenants under a fixed-term renting agreement are obliged to pay their rent on time. If rent is not paid by the agreed upon deadline, the landlord may take legal action. In addition, any party impacted by a contract violation may start legal action by submitting a rental dispute to RERA.
In addition, not paying your home rent is against the terms of the lease. In Dubai, it could be one of the reasons for the eviction notice from the tenant. Tenants are therefore required to pay their rent using the approved methods.
NO CONTRACT
Short-term leases are a practical option for recent immigrants who are awaiting their residence permit. In Dubai, short-term rentals for one month or less don’t need to be registered with RERA or Ejari and require a signed contract. Additionally, these short-term rentals provide a variety of payment choices, including daily, weekly, and monthly.
MODES OF HOME RENTAL PAYMENT IN DUBAI
You will discover that most landlords in Dubai do not like to receive monthly rent payments for homes when you sign a contract. They want checks, either one or several. It is also possible to postdate these checks.
If the amount is modest, some landlords may take cash. It isn’t the recommended method of payment, though. Furthermore, with the recent agreement between Emirates NBD and Dubai Land Department, direct debit will now be a possibility. The UAE Central Bank’s Direct Debit System (UAEDDS) will enable rental payment collection since the post-dated checks will be digitalized.
Let’s go over every option for paying your Dubai rent at home.
SINGLE CHEQUE
In Dubai, some landlords accept a single check as payment for a rental property. One check, dated the day the tenants receive their property keys, represents the full year’s rent payment.
Although tenants may not always be able to pay rent in this manner, landlords benefit from the security it provides. Tenants may, however, benefit from paying a lump sum during rent negotiations. Renters who pay their rent all at once can end up paying less than those who pay their rent on a monthly, quarterly, or bi-annual basis.
MULTIPLE CHEQUES
Splitting the payments over two, four, or six checks per year is a practical and alternate payment method to a single cheque. Tenants in Dubai have less financial strain when they receive multiple checks for their house rental payments.
On the day the property is given to you, you can offer the landlords two, four, or six postdated checks. But, when paying with several checks, tenants won’t have much power to haggle over the cost.
DIRECT DEBIT
Direct Debit is connected with Ejari. According to an agreement between the DLD and Emirates NBD bank, direct debit will be the preferred method of payment for house rentals in Dubai after the DDS system is implemented. Having said that, direct debit is an option for owners of Emirates NBD accounts, credit cards, and debit cards to pay their rent.
By taking this step, check errors will be decreased and delays will be avoided. Furthermore, the ability to accept rent payments via an internet payment gateway will benefit real estate investors. The program is a component of the Dubai government’s plan to cut back on paper usage.Both sides will gain from the digital method, as tenants will have a flexible payment option and landlords or property management businesses in Dubai won’t have to worry about any post-dated checks.
Rent is typically paid by tenants in two, four, or six installments. Nevertheless, the tenant will be able to choose the payment date thanks to the direct debit system, which will lessen the need for several postdated checks. When a lease agreement is signed, or when it is renewed, the landlord and renters will decide on the dates for rent payments.
In addition, the landlord will get the tenants’ direct debit requests. The DDS system will automatically deduct the money based on the payment date from the tenant’s account, hence reducing the need for post-dated checks.