Dubai: Tenants prefer online bank payments over cheques as rents rise

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

Waheed Abbas

Published: Mon 29 Apr 2024, 6:00 AM

Last updated: Mon 29 Apr 2024, 8:52 PM

Tenants are increasingly requesting landlords to pay rent via online bank transfers rather than cheques.

This facility is also offered by property owners to some of those new Dubai residents who have not yet obtained their chequebooks.

This means that online payments are increasingly replacing cheque payments, especially if the mutual trust between the two parties has grown over the period.

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“Landlords are increasingly seeking higher prices. Tenants commonly request to pay via bank transfer rather than cheques, which appears logical once a relationship is established and there's trust without the need for physical cheques. In some cases, parties negotiate the number of payments or notice period to provide tenants with more flexibility if they plan to buy or relocate,” said Jacob Bramley, leasing manager at Betterhomes.

Jacob Bramley

In early 2023, Dubai’s real estate rental online registration system Ejari was “fully integrated” with a direct debit system (DDS) of the Central Bank of the UAE, eliminating the need for tenants to submit post-dated rental cheques.

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

Alina Adamco, head of sales at Metropolitan Homes, said that new Dubai residents may request to keep utilities in the landlord’s name until they obtain their Emirates ID or may ask for bank transfers if they haven’t received their chequebook.

“Landlords without UAE bank accounts are now open to receiving rent via international transfers, provided clear instructions are issued through their registered email address. Recognising situations where tenants may lack a chequebook, landlords are increasingly accepting direct bank transfers or even third-party cheques, ensuring timely payments through cashing or replacement on the due date,” she added.

Alina Adamco

Karun Luthra, vice president for global operations at Foremen Fiefdom, said landlords are adopting online rent payment systems, maintenance request portals and communication platforms to improve tenant convenience.

Seeking maintenance

Luthra added that tenants commonly request clear maintenance procedures, pet policies, subletting terms and information about rent increase limitations as per Rera regulations when signing new or renewal tenancy contracts.

Karun Luthra

He said smart home features like digital locks and thermostats are becoming popular among tenants which provide them with more control over their living environment.

In more established communities, Jacob Bramley said tenants and landlords may agree to some maintenance work upon renewal. “For example, they might agree to upgrade the kitchen, bathrooms, or even add a swimming pool.”

Paul Kelly, operations director at Allsopp & Allsopp Group, said tenants seem to be requesting more maintenance and restoration works, which again is natural as people are looking to get more as they are spending more due to rental rise.

Paul Kelly

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