21% of Dubai’s tenants are still unaware of e-checks

Residents of several populated areas of Dubai have been paying rent without a check since 2019. A senior official of Dubai Holding Asset Management, who runs 15 communities, said that the company had introduced e-payment when it launched the "DubaiAM Life" application.

Communities covered by this scheme include: Remraam, Layan, Ghoroob, Ghoroob Square, Shorooq, Dubai Wharf, Manazel Al Khor, and Al Khail Gate.

The government of Dubai recently announced a system in which payments on rental checks are automated and digitized using the direct debit system of the UAE Central Bank (UAEDDS). Tenants can choose this scheme, without having to submit rental checks with a subsequent date, in accordance with an agreement signed between the Dubai Land Department (DLD) and Emirates NBD bank.

More than 21% of residents still pay rent in the old-fashioned way, without a receipt. In general, payments via the app have increased significantly in 2022, as people realize the benefits and convenience that this digital option provides. In the first half of 2022, app-based transactions accounted for almost 87% of payments for fiscal year 2021.

The real estate asset management company has liquidated more than 10,000 checks since the introduction of this scheme.

Ahmed Al Suwaidi, managing director of residential Complexes, Dubai Holding Asset Management, said that residents had three payment options through the app: postal date checks, credit or debit card, or partial payment with their own card, and the rest with postal date checks. Direct debit with multiple payment terms replaces the traditional checking model, and this transition is built into the app, where residents can sign their contracts and documents with the UAE Pass.

He explained that non-cash payment of rent is not mandatory: "We recognize that the use of checks with a subsequent date is still a common practice in the region, so tenants who are not so familiar with the direct debit system can choose to pay based on a check."

Digital payment platforms such as direct debit/re-credit card facilitate the overall payment process for residents. They eliminate the need to manually manage receipts with a subsequent date, reducing stress while keeping all the necessary information and documents in one convenient place.