Dealing with Bounced Cheques
A bounced rental cheque is an ordinary situation in real estate business. Tenants may end up in a NSF (non-sufficient funds) state for many reasons. The point is what landlords can get according to the laws covering these cases. We want to make sure you know all the aspects of how to minimize your losses.
Cheques are an integral part of Dubai financial system. Writing a cheque you are unable to pay for is against the law. Until recently, you would get imprisoned for this action, but recently, Dubai courts started to issue fines instead. This covers the cheques for amounts not exceeding AED 200,000.00. Below you can see the penalties tenants pay for bounced cheques:
- A cheque up to AED 50,000.00 – a fine of AED 2,000.00;
- A cheque between AED 50,000.00 and AED 100,000.00 – a fine of AED 5,000.00;
- A cheque between AED 100,000.00 and AED 200,000.00 – a fine of AED 10,000.00.
What does this reform mean for landlords?
Most debtors were afraid of going to jail. Now, a bounced cheque of the mentioned amount is successfully downgraded to a misdemeanor. Tenants are now interested in repayment. It's much easier for banks to find a solution for debt restructuring and take into account debtors’ paying capability at the same time nowadays.
Fortunately for landlords in Dubai, BSO services in real estate assets management aim to prevent them from such issues. We take care of timely rent collections along with swift payment clearance for every client. Whether you own the residential or commercial property, we assure you that all the payment aspects are under BSO's control.
How does BSO help landlords to avoid dealing with bounced cheques?
One of our advantages is an outstanding way of tenants screening before advising on any deal to our landlords. BSO works on verifying of the following information about any tenant:
- Applicant profile;
- Employment status;
- Monthly income statement;
- Rental history;
- Legal compliance.
We work with trouble-free tenants; therefore we reduce the risk of getting bounced cheques to all our landlords. Contact us today and keep yourself away from bounced cheques.