The cheque system explained
In Dubai, tenants traditionally pay with post-dated cheques. These are cheques bearing a future date that the bank cashes on the agreed date. A tenancy of AED 80,000 per year is, for example, paid in four cheques of AED 20,000, each dated at the start of a quarter.
The number of cheques is negotiable and influences the rent. Payment in one cheque (the full annual rent in advance) typically secures a discount of 5–10%. Two cheques is most common, and four cheques is standard for most tenants. Six or twelve cheques is sometimes accepted, but at a premium.
Risks of bounced cheques
A bounced cheque was previously a criminal offence in the UAE. Since the 2022 legal reform it is handled as a civil matter, but the consequences remain serious. The bank charges AED 100–1,000 in fees for a bounced cheque.
As a landlord, you can file a complaint with the Rental Dispute Settlement Centre (RDSC) following a bounced cheque. The RDSC can order the tenant to pay, issue an eviction order or attach assets. The procedure typically takes two to four weeks.
Augusta Properties monitors all cheque dates and takes immediate action upon non-payment to protect your interests.
Modern payment alternatives
An increasing number of landlords and tenants are moving to digital payment methods. Direct bank transfer is the most common alternative, with the tenant transferring monthly or quarterly to your account.
Platforms such as Dubai REST (the official app of the Dubai Land Department) allow rent to be paid and received digitally. Some property management firms also offer payment by credit card or direct debit, although processing fees of 2–3% apply.
We always recommend a combination: cheques as security in the contract, with the option of digital payment. This provides both legal protection and practical convenience.
Rental disputes and the RDSC
The Rental Dispute Settlement Centre (RDSC), part of the Dubai Land Department, handles all rental disputes in Dubai. Common cases include non-payment of rent, disputes over rent increases, unauthorised subletting and end-of-contract disputes.
The fee for filing a case with the RDSC is 3.5% of the annual rental value, with a minimum of AED 500 and a maximum of AED 20,000. The procedure is relatively fast: most cases are handled within two to four weeks.
In the event of non-payment, the RDSC can issue an eviction order, after which the tenant has 30 days to vacate. Augusta Properties handles all legal proceedings on your behalf and has extensive experience with the RDSC.
Our rent collection service
Augusta Properties manages the entire rent collection process: receipt and safekeeping of cheques, monitoring of payment dates, administrative follow-up on late payment and, where necessary, legal action through the RDSC.
You receive a monthly financial statement showing rent received, outstanding amounts and any actions taken. Rental income is transferred after receipt to your home-country or UAE bank account.
Through professional management of rent collection, we minimise arrears and protect your cash flow.