Dubai is among the very few states that make you bid farewell to ancient practices for good. Living in a world of digitally accessible procedures means that paying rent via cheques looks outdated. So, the Dubai government has started an online payment system for rental transactions.
As a component of the partnership with the Emirate NBD and Dubai Land Department, rental payments will be digitized with the Central Bank of the UAE’s direct Debit System. Therefore, internet banking will soon become the new norm.
Why Invest in Dubai Properties?
This Emirate boasts higher rental yields than lots of other real estate markets in the world that have been existing longer. On average, investors can reap gross rental yields between 5% to 9%. Not only this, the property prices per square foot are lower than lots of global cities, making Dubai a budget-friendly address to possess prime real estate.
The properties of Dubai tend to all types of preferences, needs, and tastes. Whether you are a working professional, a student, with a partner, or a family, you can find tons of options regarding architecture, configuration, and address.
Moreover, if you prefer a direct approach to owning a property, Dubai properties are ideal as no middleman is involved. By eliminating an agency and broker from the home buying procedure, the hands-on technique becomes swift and straightforward.
Most Dubai developers enable buyers to book their preferred units online from their official website. Matter of fact, the cost of properties increases if you depend on a real estate agency or broker to search for your ideal home. If you are looking to invest in real estate then you should visit www.luxuryproperty.com.
For instance, brokers can charge you a 2% agency fee. Some agencies also add a 5% VAT charge which can surge the cost. While these additional fees are negotiable, the extra cost might be difficult for buyers on a strict budget.
What is The Goal Behind Moving To Digital Rental Payments?
Dubai Land Department and Emirates NBD are proud to join hands by offering ease for lots of people. While landlords and investors won’t be managing the post-dated cheques, tenants can enjoy the freedom of rental payment options.
It is also a component of the government’s regime as a technique for a paperless society. This is a collaboration that will help streamline the methods engaged with the real estate market.
Best Perks of Making the Rental Payments Online
Previously, anyone owning a home in Dubai Marina or any other establishment could only market their property through an online portal to interested buyers so that they could have a virtual tour. This helped those gain tenants for their properties in less time, enabling them to amplify the returns. Surprisingly, the latest trend has got its hands on rental payments too.
The digital payment technique is an upgrade for the real estate innovation in the Emirate as it has previously transformed the country’s property market dynamics. And although no specific date is submitted for the introduction of the digital system, the fame is undeniable.
Ahead, there is a brief guide on how the future system will transform rental payments. So, let’s go through this quickly.
1. Benefits for the Foreign Investors
Successful foreign investors wanting to buy a property in Dubai can enjoy the perks of digitized rental payments. Moreover, they can flawlessly achieve a non-resident account with the Emirate NBD, which will help to accommodate the purchase of the rent collection and process.
For extra convenience, the foreign investors will enjoy complete help from a committed relationship management team to witness a hassle-free account opening venture.
2. A Stable Income For the Landlords
Currently, there is a prominent growing trend of providing monthly rental payments and other schemes. Apart from the investors, landlords will feel that the digital payment technique is a better option.
Smaller portions mean that landlords will be assured of a stable income stream. Plus, it helps them to fulfill the bank’s repayment schedule.
3. The Supremacy of Cyber Security
Security affairs offered by the Dubai government can never be doubted, whether cyber or physical. The latest policy makes sure that the whole bank transaction will meet the highest quality of the finance industry. Furthermore, it is a powerful financial resource that the Central Bank of the Emirates backs up.
In addition to this, online payment decreases the risk connected to cash fraud or cheques. The reason is that the cloud-based online options secure the consumer data. It is perhaps a wonderful way to shield the tenants and their landlords.
4. Solidify the Property Management Operations
Uncertainties such as a lack of balance, cheque bouncing, and cash loss are not possible with online rental payments. Afterward, this online system issues a confirmation receipt to make the task for the property manager by manually developing the receipts.
In each aspect, adding a digital payment solution will help streamline the process by allowing everyone to remain on the same page.
5. An Affordable Automation
When landlords manually gather the rental payments and then quickly visit the bank, they unintentionally waste their funds and time. Similarly, depositing cash and making payment receipts in the bank takes plenty of time.
Therefore, automating the whole process is a productive technology and a more feasible method for tenants to save their precious time and money.
6. Record of the Payments
This digital payment technique will offer a quick status update on the portal. By doing so, tenants will receive a notification of their task. The collection of online rental payments comes with a digital receipt, and if it is linked to your property management software, all the important details will be updated in your accounting module.
7. Scheduling Reminder for Payments
Most of the tenants usually forget to pay their rent on time. In this situation, the online application will send a reminder to your electronic device. Sending such nudges nearer to the due date will guarantee a fast rent collection.
As opposed to this, manually sending these reminders takes up immense time. An online payment solution with an automated reminder system makes sure that the tenant is punctual with their dealings.
Summing it Up
As the Dubai real estate market is ready to outperform the global market, digitization of rental payments will become another achievement. Plus, with all businesses coping in the world is slowly shifting to automation, the city has also stepped forward with the rental payments.
So much manual clutter will be avoided after switching to the online banking system. Moreover, it will be a proud addition to the city’s remarkable networking.
Therefore, if you are deciding to shift to Dubai in the near future, being acknowledged about the basics will hold immense value prior to signing a tenancy contract.