Dubai cracks down on late rental payments with certificate system

Real estate authorities in Dubai have announced a new certificate system to crack down on late rental payments and other disputes.

The Rental Good Conduct (RGC) Certificate service is available via the Rental Dispute Centre (RDC) app and allows users to check on the history of a landlord or tenant.

Users can see if a rental case has been filed against them to avoid legal problems such as a travel ban or the seizure of their accounts or property.

In addition, tenants can see if a case has been filed against a prospective landlord, or vice versa, and make an informed decision about whether or not to sign the contract.

“The new service implements the initiatives offered by the centre to reduce rental disputes and was initiated following the monitoring of several cases where a tenant rents a unit and only pays the first instalment of the agreed total cost,” said director of the RDC judge Abdulqader Mousa.

“At the end of the contract, the same person rents another unit and repeats the act in other properties, exposing the leaser to severe losses. This service will assist real estate management companies in finding rental information of a person they intend to contract with and avoid such mishaps.”

Mousa said the data provided would not violate confidentiality laws and would cover both individuals and companies.

Real estate firm Allsopp & Allsopp’s CEO argued the system would offer more clarity to landlords and tenants.

“What the good conduct certificate will do is give either party a little background on the other to help with their decision-making process and it will also greatly encourage both landlords and tenant to conduct themselves in the correct manner, as failure to do so could affect them in the future,” said Lewis Allsopp.

“Another important aspect could come at the negotiation stage. If a Landlord has an excellent standing, then they may be able to command for a higher rental amount for their property. On the flip side, if a tenant has an excellent rating then a Landlord maybe more open to an offer as they feel they will be getting a reliable and trustworthy tenant.”

The certificate system comes under wider Dubai government plans to integrate new technologies into services.

In May, Dubai Land Department announced plans for a digital platform that would move property transactions online and reduce the need for interactions with agents.

Read: Dubai gov real estate platform aims to cut out agents

Abu Dhabi also said earlier this week it would be making it easier for landlords to evict tenants that fail to pay rent on time.

Read: Abu Dhabi makes it easier for landlords to evict tenants