Dubai integrates real estate online registration system Ejari with direct debit system of Central Bank

Dubai has integrated the real estate online registration system Ejari with a direct debit system of the Central Bank, thus, allowing landlords to debit rent from the tenant’s account directly, doing away with the need for post-dated cheques.

But one big question for tenants making monthly, quarterly or half-yearly payments is whether they will continue with their existing payment method.

Real estate brokers and property management firms say that the landlords and the tenants will mutually agree to whatever methodology suits both parties. Some industry executives suggest that the new system will lead to a more common practice of monthly or quarterly payments.

According to HP Aengaar, CEO at Asteco, the frequency of payments are to be agreed upon by the parties and forms part of the lease agreement.

According to Betterhomes, single cheque payments are on the rise as the power has shifted to landlords, with an annual increase of six per cent in Dubai.

Anisha Sagar, head of property management at Allsopp & Allsopp, said the beauty of this system compared to the European or UK model is that the direct debits are determined by the agreement made on the payment schedule between the owner and tenant.

He believes that landlords would be more comfortable with the new system.