Pay rent by direct debit in the UAE with Asteco
Did you know that you can pay rent via direct debit in Dubai? The option is also available in the rest of the UAE thanks to Asteco. Asteco (also known as Asteco Property Management), one of the leading property management companies, offers a Direct Debit System in the UAE for property payments. Post-dated cheques have been the traditional rent payment method in the UAE. But now, tenants can pay rent by direct debit with Asteco, simplifying the process for the parties involved.
This digital payment method is one of the ways that new real estate technology like PropTech has transformed the dynamics of the UAE property market.
How to pay rent by direct debit in Dubai by Asteco UAE
Launched in 2013, the Direct Debit System is a digital payment method introduced by the UAE Central Bank. Simply put, it’s a safe and convenient method to make regular payments, whether it’s fixed or variable amounts.
The company’s direct debit system allows tenants to pay rent by direct debit with Asteco in the UAE. Even today, writing post-dated rent cheques is a common practice in the UAE, that Asteco deems outdated in a rapidly transforming digital world. Paying rent through direct debit is secure, efficient and fully automated. More importantly, it allows tenants in the UAE to deposit payments into the landlord’s account on an agreed frequency – whether it’s quarterly or monthly basis.
Bounced cheques in the UAE can have legal repercussions. So Asteco’s direct debit system can be a reprieve for all parties.
The digital payment method was introduced by the company a few years ago. It has been successfully integrated into Asteco’s property management software and has been met by approval from landlords. It also means that tenants can easily pay rent via direct debit in Dubai and other emirates without hassle for properties managed by Asteco.
Recent Updates
The company is licenced by the UAE Central Bank as the originator of the Direct Debit mandate in Dubai. This allows landlords more protection since it disallows tenants to cancel payments or close their accounts without approval.
Asteco is now in a partnership with Direct Debit AE to ensure the process’s compliance with UAE Central Bank regulations. This allows the company to be alerted when funds have been received or if there is a return. The latter scenario may indicate an insufficiency of funds in contractual payments, thereby allowing landlords to register a legal complaint. The tenant, unit origin and payment is also identified.
How do tenants and landlords sign up for direct debit payments in the UAE?
The first step requires the landlord to agree to use direct debit payments for rent on their properties in the UAE. Then, instead of post-dated cheque(s), the tenant goes for a one-time-setup when signing their tenancy contract.
Once it’s set up, tenants will then be able to pay rent through direct debit. Payments will be debited from the tenant’s current or savings account – or even their credit card – on the agreed dates and frequency and deposited into the landlord’s account.
What are the benefits to pay rent by direct debit in Dubai and the rest of the UAE?
Post-dated rent cheques can create an issue for tenants. Having to pay in lesser frequency means taking out loans or saving up large amounts to meet rent obligations. Direct debit payments for tenants in Dubai and other emirates can ease their cash flow, since it requires smaller, more frequent payments. It’s also a much-needed relief for those who are new to the UAE or have an outstanding bank loan. It’s easier to pay rent by direct debit with Asteco.
Landlords benefit from the direct debit payments for rent too. It allows them to hold at least two month’s worth of rent at all times — one month’s advance and the other as a security deposit.
The smaller and more frequent payments mean landlords have the assurance of a stable income stream. It also helps landlords and developers meet banks’ repayment schedules. There’s already a growing trend for developers to offer monthly payment terms, among other schemes.
Make sure that you are aware of the pros and cons of short term and long term rentals in Dubai and other emirates before you commit!
How secure will I be if I pay rent by direct debit with Asteco?
The Direct Debit rental payment system is a robust financial tool backed by the Central Bank of the UAE. Signing the concerned document with Asteco registers the tenant with the Central Bank as well. The alternative payment method is also well established in other countries.
Rent payment through direct debit in Dubai and other emirates is now more secure than ever for those who have implemented the system.
For more information about the benefits of Direct Debit for landlords and tenants, visit Asteco’s official website. It can also be a helpful source if you are wondering how to pay by direct debit in Dubai.
ABOUT ASTECO
Paying rent by direct debit in Dubai and other emirates is possible now thanks to Asteco. The real estate services company has an impressive track record of delivering quality in a timely manner. Asteco currently operates in Dubai, Al Ain, Jordan, Abu Dhabi and Sharjah.
Asteco is the leading real estate firm and property services company in the UAE, which has been in the industry for more than 30 years. They provide an array of services including development consultancy, valuation services, sales and leasing services, and asset and property management services.
FAQs
Paying rent via direct debit in Dubai. How does it work?
In order to do so, tenants must first register their rental contracts on the emirate’s Ejari system and provide their banking details to their landlords. It is the landlords who will initiate the direct debit setup. This is how tenants can pay rent via Ejari direct debit in Dubai.
Can you use a prepaid debit card to pay rent?
Yes, provided that there are sufficient funds in the account to cover the payments.
Do you pay rent monthly or yearly in Dubai?
Tenants in Dubai are expected to commit to a year-long tenancy contract. They can either agree to pay the amount in full or two to four–month payments.
Is there a maximum direct debit amount?
You are allowed to set a maximum and minimum amount while setting up direct debit.
Can I pay rent via bank transfer?
Yes, it is possible to do so. Ask your landlord for the option.
Can you still pay via cheque?
Not all landlords have adopted the direct debit system. So yes, it might be possible to pay rent via cheques.
How to pay rent in Dubai?
Paying rent in Dubai is among the many costs of living in the emirate. Tenants can pay their dues for fixed rental contracts via multiple or single cheques and direct debit. It’s up to landlords which option they choose when tenants want to rent a property in Dubai.
That is all about paying rent by direct debit by Asteco. Are you a tenant in the UAE? Then you must consider tenancy renewal fees before your contract is up. Also make sure that you are aware of the hidden costs of renting a property in Dubai.
Also from dividing a dinner bill to sending cash in an instant, FastPay app by Emirates NBD is your mobile solution for seamless cashless transactions.
And stay tuned to MyBayut for more insights into the UAE real estate market!
