Understanding PDC (Post-Dated Cheque) Management

Post-dated cheques remain the most common rent payment method in the UAE. Proper PDC management is essential for smooth property operations.

How PDC Works in UAE Rentals

Tenants typically provide 1-12 cheques at lease signing:

  • One cheque: Full year's rent
  • 2-4 cheques: Quarterly payments
  • 12 cheques: Monthly payments

More cheques often command higher rent as it provides flexibility to the tenant.

PDC Collection Best Practices

At Lease Signing

  • Verify all cheque details
  • Check bank name and account
  • Confirm cheque numbers
  • Ensure proper dating
  • Store securely

Recording

Document for each cheque:

  • Cheque number
  • Bank name
  • Amount
  • Date
  • Associated lease

Deposit Schedule

  • Calendar all deposit dates
  • Set reminders 3-5 days before
  • Deposit promptly on date
  • Track clearance status

Handling Bounced Cheques

A bounced cheque is serious in UAE:

  • Contact tenant immediately
  • Understand the reason
  • Request replacement cheque
  • Consider legal options if needed

Legal Implications

  • Can file police case
  • Criminal offense in UAE
  • May affect tenant's banking
  • Leverage for rent collection

Cheque Replacement

When to request replacement:

  • Bounced cheque
  • Tenant changes banks
  • Lease renewal
  • Amount changes

Digital Alternatives

Modern options emerging:

  • Direct debit authorization
  • Online payment platforms
  • Bank transfer arrangements
  • Digital payment apps

ProperLE tracks all PDCs with automated deposit reminders and bounced cheque alerts.

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