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Challenging Unexpected Service Charge Increases in Dubai: A Guide for Property Owners
In Dubai, property owners have the right to question and appeal unexpected increases in their annual service charges. Here's a step-by-step guide on how to ensure transparency, verify fee calculations, and seek resolution when necessary.
First and foremost, property owners are encouraged to familiarise themselves with the Dubai Strata Law, which mandates that every jointly owned property must be managed transparently.
To begin with, if you suspect misallocation or an unexpected increase in your service charges, you have several options. You can check the accounts yourself, hire an independent auditor (with the costs potentially being recoverable), or escalate the issue to the Dispute Resolution Committee if the AGM or EGM processes fail or you do not have access to budgets.
One crucial step is to find out whether others in your building feel the same and, if so, coordinate with other concerned owners. Group complaints often carry more weight.
Another important milestone to remember is the timeline for various property management events: you should receive the budget within 15 days of a written request, the Annual General Meeting (AGM) is held annually with a 15-day notice, and you have 30 days to file a dispute after the AGM vote.
If you own a property in Dubai, you also have the right to form an association when at least 80% of units are sold and register it with the Dubai Land Department (DLD). Owners representing at least 25% of the total unit value can call for an extraordinary general meeting (EGM) to address specific issues.
To strengthen your case, compare the accounts with neighboring communities to show how much they pay per square foot. This comparison can provide valuable insights into the reasonableness of your service charges.
The Real Estate Regulatory Agency (RERA) plays a significant role in regulating service charges in Dubai. Owners can inquire about and verify approved service fees for their buildings or communities via the Service Charge Index on the DLD website or via the Dubai REST app. This platform also enables submission of rental dispute cases and following up on any appeals or complaints.
The calculation of service charges is regulated under RERA guidelines and subject to an index that reflects changes in maintenance cost, ensuring some standardization and transparency. If owners find an unexpected increase, they can file a complaint or dispute with RERA, which acts as the regulatory body overseeing property service charges in Dubai.
To guard against unexpected or unjustified rises, owners should regularly check the RERA Service Charge Index online for approved fees applicable to their property. Accessing detailed service charge breakdowns through platforms like Dubai REST is also advisable. Engaging with your property management company or developers directly for clarifications on the calculation of service charges is another essential step.
In summary, Dubai provides a regulatory framework via RERA and DLD platforms to ensure service charge transparency and dispute resolution, empowering property owners to challenge increases and verify fee calculations effectively. By staying informed and proactive, you can protect your rights as a property owner in Dubai.
- Dubai's Real Estate Regulatory Agency (RERA) plays a vital role in regulating business activities like service charges, providing tools for owners to verify approved fees.
- If you suspect an unexpected increase in service charges in your property in Dubai, you can compare the accounts with neighboring communities to determine reasonable service charges.
- To strengthen your case when questioning service charge increases, also access detailed service charge breakdowns through platforms like Dubai REST and engage with your property management company or developers for clarifications.
- During your quest for transparency in Dubai's real-estate sector, don't forget to familiarize yourself with the Dubai Strata Law, which seeks to promote transparent management of jointly owned properties.
- In addition to checking service fees, take advantage of platforms such as the Service Charge Index on the DLD website or the Dubai REST app to inquire about and submit rental dispute cases, as well as follow up on any appeals or complaints.
- If you own a property in Dubai, you have the right to form an association with fellow owners to call for an extraordinary general meeting (EGM) to address specific issues, should 80% of units be sold and registered with the Dubai Land Department (DLD).
