The new rental agreement will result in monthly or quarterly payments becoming more prevalent.
Dubai has integrated the real estate online enrollment system Ejari with a direct disbenefit system of the Central Bank, therefore, allowing landlords to disbenefit rent from the tenant’s account directly, doing down with the need forpost-dated cheques.
But one big question for tenants making yearly, daily or partial-monthly payments is whether they will continue with their being payment system.
Real estate brokers and property operation enterprises say that the landlords and the tenants will mutually agree to whatever methodology suits both parties. Some assiduity directors suggest that the new system will lead to a more common practice of yearly or daily payments.
According to HP Aengaar, CEO at Asteco, the frequence of payments are to be agreed upon by the parties and forms part of the parcel agreement.
“ We’ve seen both yearly and daily direct disbenefit authorizations put in place. We’ve encouraged landlords to consider the direct disbenefit medium to be immaculately suited towards yearly instalments as it reduces the probability of returned cheques due to irregular autographs, overwriting and the dreaded need to order a new chequebook, ” said Aengaar.
“ To ease cashflow on tenants in areas where rents are adding significantly, yearly direct disbenefits would palliate some of the pressures on payment scores, and we believe for numerous landlords, the assurance of regular payments being entered is a positive for both sides, ” he said.
According to Betterhomes, single cheque payments are on the rise as the power has shifted to landlords, with an periodic increase of six per cent in Dubai.
Anisha Sagar, head of property operation at Allsopp & Allsopp, said the beauty of this system compared to the European or UK model is that the direct disbenefits are determined by the agreement made on the payment schedule between the proprietor and tenant.
He believes that landlords would be more comfortable with the new system.
