Direct Debit is an automated transfer of rental funds from the Tenants bank account on a specified date to the Landlord’s bank account, without the need for presenting a cheque or cash to the bank to clear funds or be rejected due to a signature irregularity issue.
Asteco are now licensed by the UAE Central Bank to act as the Originator of a Direct Debit mandate which ensures that a Tenant cannot close their account or cancel any payment instructions without our approval to do so. This limitation will afford the Landlord a greater level of security in payment delivery.
In order to setup this procedure in accordance with the UAE Central Bank regulations, Asteco have partnered with Direct Debit AE to facilitate this. One of the advantages of this allows Asteco to be notified immediately when the required funds have been received on schedule or if there is a return of funds, which should only occur in the event of insufficient funds to honor contractual payments and identified with a unique code identifying the payment/tenant/unit origin. In the event of non-completion of payment, this is treated the same as a returned, unpaid rent cheque and a process can be initiated whilst unpaid, to lodge a police case against the Tenant for the arrears.
The strategy that Asteco have devised and implemented to manage payments would result in the Landlord holding two months’ worth of rent in hand at all times as One month rent value as security deposit and One month rent in advance. This will ensure that the landlord is in funds at the time of vacating or pre termination of the agreement.
We believe that this innovation continues to show that Asteco strive to deliver exceptional service and product that exceeds that available in our market place. We also believe that the introduction of Direct Debt rental payment will assist Tenants in being more prepared to meet their rental obligations through secure monthly payments and also assist Landlords in a more efficient manner in the prediction and management of income cash flow.