Everything You Should Know About Rent Payment in Dubai

Many expats who move to Dubai rely on staying in rented properties. That said, one must learn about the essentials of renting. For instance, rental contracts, registration process and rental payment methods in Dubai. 

Below, we’ll go through the methods for rent payment in Dubai but before that let’s find out the types of rental contracts.

• Types of Rental Contracts in Dubai
• Methods for Rent Payment in Dubai
• FAQs

Types of Rental Contracts in Dubai

Paying rent in Dubai can be done in two ways. Both ways have their benefits and disadvantages depending on what the tenant is looking for. There are two types of rent agreements in Dubai: 

• Fixed Contract
• No Contract 

Fixed Contract

This is the agreement that’s preferred by a large number of landlords in Dubai. It guarantees the landlord’s safety when it comes to receiving rent payments in Dubai. In a fixed contract, the tenant and landlord for payment at a specified date. 

The signed lease agreement must then be registered on Ejari. The process to register a tenancy contract with Ejari in Dubai is quite simple. These contracts must mention the method for rent payment. After that, it must be signed by both the parties. 

Due to a fixed contract, the landlord cannot evict the tenant until the term of the lease is over which is a year from the start date. The fixed contract requires the tenant to pay the specified amount at a due date. Failure to pay will be considered a contract violation and can warrant legal action from the landlord. Before signing a tenancy contract, know your rights as a tenant in Dubai.

No Contract

This agreement is for tenants who wish to rent a residence for the short term. The payment between landlord and tenant can be agreed upon on a daily, weekly or monthly basis. 

As such, there is no formal contract required. This agreement is perfect for expats who are still awaiting their resident visas.

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Methods for Rent Payment in Dubai

Two different methods of payment can be agreed upon between the landlord and tenant. These rent payment methods must be considered when signing a contract. 

• Single Cheque
• Multiple Cheque
• Direct Debit

Single Cheque

Landlords in Dubai do not charge monthly payments. Instead, the tenant usually pays the property rent for the full year all at once. The payment is to be processed on the day the landlord hands over the keys to the tenant. 

The benefits of paying rent in Dubai via a single cheque are the following: 

• It’s easier to pay the full sum amount in a single cheque than if the payment was segmented between multiple dates. 
• It provides safety to the landlord, bolstering tenant and landlord relationship.
• The tenant has more leeway to negotiate for a decreased price if they’re paying a full sum amount. 

The major disadvantage of this agreement is that many tenants do not have the amount to pay the whole year’s rent at once. 

Multiple Cheques

In this agreement, the tenant can pay the amount on specific dates. It can be bi-monthly, quarterly or bi-annually. The benefits of this agreement are that the tenant can pay smaller amounts at due periods. Besides, it allows tenants to comfortably pay their rent in segments through multiple cheques. 

The disadvantages are:

• The segmented amount of monthly cheques might end up costing more in total than the full sum amount. 
• The tenant has less room to negotiate the price. 
• Bounced cheques can cause legal troubles for the tenants.

Direct Debit

Rent payment methods also feature a direct debit system. Tenants who have an Emirates NBD account or a debit or credit card can pay their rent through bank transfers. 

The direct debit system is highly convenient and is the preferred method of payment for most tenants in Dubai. Plus, direct debit provides ease with scheduling rent payments in Dubai.

FAQs

Rental payment methods in Dubai allow a lot of leeway to tenants. Tenants can choose between multiple different methods of payment depending on their preference. That was everything to know about rental payments in Dubai. For more on renting, check out how to rent property in Dubai like a pro.

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