Dubai is a global attraction for travelers and corporations because it is the ideal cosmopolitan city. If you are a visitor visiting the Emirate, it is all wonderful, but living in this rich metropolis is a very other experience.
The DLD (Dubai Land Department) and its regulatory arm, RERA (Real Estate Regulatory Agency), have made the process of buying property in Dubai more easier. However, property buyers in Dubai should be aware of the Dubai property service charges, which are extra costs when buying an investment property. Let’s take a look at what service charges are and how to calculate them on a property.
A PROPERTY SERVICE CHARGE IS WHAT?
A property service charge covers the costs of property management, maintenance, operation, and repair. The property owner or any registered property management company authorized by the owner to operate on their behalf shall collect the Dubai property service costs.
Property owners are required to pay service charges under Dubai Law Number 6 of 2019 Concerning Ownership of Jointly-Owned Property. The area of the owner’s unit in relation to the total area of the shared property is used to compute the owner’s share of the service charge. To make this procedure easier, DLD launched the Mollak System, an online gateway for tracking service costs on jointly-owned assets.
Aside from property service costs, the property owner must set aside a’sinking fund’. This fund serves as a reserve fund that is set aside to offset changes in service prices. The sinking fund is also utilized for costly maintenance work such as refurbishment, external cladding, safety system maintenance, air conditioning system maintenance, and so on.
WHO ARE THE DUBAI PROPERTY SERVICE CHARGES APPLIED TO?
Property service costs apply to all property owners in Dubai. It is applicable to all sorts of properties in Dubai. Service costs differ between properties since they are determined by a variety of factors, including:
- Project Type: The apartment in a building, including any terraces, balconies, etc.
- Property Location: Where is the property located?
- Property Usage: The reason for which a property is purchased. It might be used to construct a residential villa, a business office, a retail store, and so on.
- Property Size: The overall area of a property.
HOW TO CALCULATE PROPERTY SERVICE CHARGES IN DUBAI
Property service charges in Dubai are determined per square foot. The following services are often covered by the service costs received from an owner:
- Services
- Utility Services
- Maintenance
- Insurance
- Master Community
- Reserved Fund
- Management Services
The service costs on a property can be calculated through many channels, including the Dubai REST App and the DLD website.
CALCULATE SERVICE CHARGES ON PROPERTY USING THE DLD WEBSITE
To calculate the service costs on a property using the DLD website, follow the instructions provided below.
CALCULATE THE SERVICE CHARGES USING THE ‘TITLE DEED NO.’
- Open the website and choose ‘Title Deed No.’ from the drop-down menu.
- Enter the certificate number, year, property type, and budget year.
- When you click Calculate, the results for service costs will be presented.
USE THE ‘SERVICE CHARGE INDEX’ OPTION TO CALCULATE THE SERVICE CHARGES:
- Open the webpage and choose ‘Service Charge Index’ from the drop-down menu.
- Enter the project’s name, the intended use, and the year.
- When you click Calculate, the results for service costs will be presented.
USE THE ‘SELECT ON MAP’ OPTION TO CALCULATE THE SERVICE CHARGES:
- Open the webpage and select ‘Select on Map’ from the drop-down menu.
- Find the place where you want to find the service prices. When you click on the desired location, the project name, use, and year will be showed.
- When you click Calculate, the results for service costs will be presented.
DUBAI REST APP CALCULATES SERVICE CHARGES ON PROPERTY
To determine the service charges on a property using the Dubai REST App, follow the procedures outlined below.
- Open the Dubai REST App and select the ‘Services’ option from the bottom bar.
- Select ‘Service Charge Index’ from the Services pane.
- You will be prompted to either manually enter the property data or locate it on the map.
- After entering the information, click the ‘Search’ button.
- On display will be the results of the service fees that apply to the specified property.
WHAT HAPPENS IF THE PROPERTY SERVICE CHARGES ARE NOT PAID?
According to Article 32 of Dubai Law No. 6, if an owner fails to pay their share of service costs, the Management firm will request payment within 30 days via a written notice issued by RERA.
Failure to pay the necessary sum within the time frame specified will result in a financial claim being issued against the owner. In order to recover the service charges, the execution judge may order a public auction of the unit owned by the defaulting owner.
That’s all there is to it when it comes to Service Charges on Property in Dubai and how to calculate them. If you own property in Dubai, you should be aware of all the additional charges associated with property acquisition. Whether you are selling, renting, or buying property in Dubai, you must be aware with the Dubai real estate market’s rules and regulations.
