The level of technological advancement in Dubai in the domestic, commercial, and government sectors is simply remarkable. The same goes for the Dubai real estate sector, as the Dubai Land Department (DLD) has streamlined everything involved in real estate transactions. From legal documents to property verification to home rental payments Dubai, everything is fully organized.
Tenants can make home rental payments in Dubai via different methods. Let’s have a look at them and other important things you should know about home rental payments Dubai. However, before that, it is important to understand the rental contracts types in Dubai.
Rental Contracts Types in Dubai
Dubai home rental payments vary based on the terms outlined in the tenancy agreement you have entered into. Landlords and tenants have the flexibility to include particular clauses regarding rental payments within their contracts. However, those clauses must be according to the RERA tenancy laws in Dubai.
Having a legal agreement in place serves as a base to develop a strong relationship between landlords and tenants. Additionally, it is the tenants’ responsibility to fulfill their obligation to make timely rental payments while also enjoying the property rights given to them.
Coming back to rental contract types, there are two major types of rental contracts in Dubai—fixed contracts and no contracts.
1. Fixed contracts
Most commercial or residential properties in Dubai operate under fixed rental contracts. In these contracts, landlords and tenants mutually agree upon terms and conditions for a specified duration. Subsequently, tenants or landlords must register the signed lease agreement on Ejari.
Under the fixed-term rental contract, tenants are obligated to pay their rent by the due date. Failure to do so gives the landlord the right to take legal action. Additionally, the aggrieved party can also initiate legal proceedings by filing a rental dispute with RERA for contract violations.
Furthermore, failure to pay home rental payments Dubai is a breach of contract and may lead to a tenancy eviction notice. In order to avoid all that trouble, it is better to make timely home rent payments on time.
2. No Contract
New expats awaiting their residence visa mostly find short-term rentals a convenient option. Renting on a monthly or daily basis in Dubai doesn’t require having a formal contract or registration with RERA or Ejari. Additionally, these short-term rentals offer flexible payment options, including daily, weekly, or monthly rental payments in Dubai.
Home Rental Payments Dubai—How Can You Make These Rental Payments?
It is important to note that there are several modes of rental payments in Dubai, but the landlords may not like all of them. In fact, some aren’t even recommended for tenants as well.
For example, few tenants prefer cash payment, but generally, it isn’t accepted by many. What’s more, cash payments without any solid proof may be difficult to prove in court later. Similarly, many landlords don’t prefer monthly payments as well.
Let’s have a look at different modes of home rental payments Dubai.
1. Single Cheque Home Rental Payments in Dubai
In Dubai, tenants have the option to pay rent through a single cheque or multiple post-dated cheques. Some landlords prefer a single cheque as it covers the entire year’s rent and is dated for the day when the landlord hands over the keys to the tenants.
Although this method provides security for landlords, it may not always be convenient for tenants. That’s because it isn’t easy to pay a lump sum amount in advance.
However, it is key to note here that paying the full annual rent amount upfront can give tenants an advantage during rent negotiations. Opting for a single cheque payment might result in lower rent compared to breaking down payments into monthly, quarterly, or bi-annual installments.
2. Multiple Cheques
Alternatively, tenants can divide payments into two, four, or six cheques annually, reducing the financial burden. These post-dated cheques can be handed over to the landlord upon receiving the property keys. However, tenants may have less room for negotiation with this payment method.
3. Direct Debit Rental Payments in Dubai
Another option for home rental payments in Dubai is through direct debit, which allows tenants to use their credit cards. The Ejari system is integrated with a Direct Debit System, which makes it the preferred mode of payment.
This initiative has been established through a partnership between the DLD and Emirates NBD bank. It enables account holders to pay rent via direct debit, reducing errors and delays associated with cheques.
In this method, tenants can choose to pay rent in two, four, or six installments, with the flexibility to set payment dates. Direct debit mandates are collected from tenants by landlords, which makes rent collection and payment easier for both sides.
This digitized approach aligns with the Dubai Government’s vision to minimize paper usage. Both landlords and tenants benefit, as landlords no longer need to handle post-dated cheques, and tenants gain a flexible payment option.
Frequently Asked Questions
How rent is paid in Dubai?
You can make home rental payments in Dubai through direct debits, single cheques, and multiple cheques.
What is the security deposit for rent in Dubai?
In Dubai, the tenant has to pay a security deposit equal to
- 5% of total annual rent for unfurnished properties
- 10% of total annual rent for furnished properties
Can I pay home rent in cash in Dubai?
Yes, tenants can pay the home rental payments in Dubai via cash but it isn’t a commonly used or preferred method.
Can I pay my rent monthly in Dubai?
Yes, you can pay rent monthly, but generally, landlords or owners do not prefer monthly home rental payments in Dubai. Also, monthly payments may weaken the tenant’s position during contract negotiations.
Summing it up
Direct debits, single cheques, and multiple cheques are some common methods of home rental payments in Dubai. Every method has its own perks and drawbacks.
If you are looking to rent out a property in Dubai, consulting registered real estate brokers in Dubai is the best way to find the most suitable and budget-friendly options.