No more rent cheques: Dubai’s new direct debit system for tenants, landlords explained

No more rent cheques: Dubai’s new direct debit system for tenants, landlords explained

A landmark agreement announced in Dubai that eliminates the need for tenants to submit post-dated rental cheques is now in effect. The new system, announced earlier this week, “is readily available” and can be accessed by “landlords and tenants”, an Emirates NBD spokesperson told Khaleej Times.

“Landlords can now get a one-time direct debit mandate signed by tenants, allowing Emirates NBD to debit the rental from the tenant’s account or credit card. Landlords can recover the rental using the automated system provided with the digital banking channel,” the spokesperson explained.

Under the agreement signed between Dubai Land Department (DLD) and Emirates NBD bank, rental cheque payments are automated and digitised using the UAE Central Bank’s Direct Debit System (UAEDDS). It benefits landlords, property management companies and tenants by eliminating the need to manage post-dated cheques manually.

Annual rents in Dubai are typically paid in two, four or six instalments via post-dated cheques.

How to avail of the new service

The bank’s spokesperson explained the procedure to subscribe to the UAEDDS service:

“The landlord would need to approach Emirates NBD and get registered for the service. Instead of collecting cheques, the landlord will collect signed direct debit mandates from tenants and register all those mandates with the