What are service charges in Dubai and who pays them?

Service charges are annual charges paid by a proprietor for the management and upkeep of a building or development including lift maintenance, garden maintenance, security, pools, utilities in shared areas, maintenance and cleaning.

For jointly owned property in Dubai (Law 6 of 2019) the share of each proprietor is calculated in relation to the size of their unit in the building.

Service charges are paid by the proprietor and not the occupier unless stated within the lease, where in the case of non payment by the occupier the proprietor is still liable.

Only service charges approved by RERA may be charged by a property manager. Unpaid service charges may be referred to the Rental Disputes Centre.

Prior to purchasing property it is important to refer to the DLD Service Charge Index available on the Dubai REST app or on the DLD website to ascertain the approved service charge for the building. Service charges can differ significantly between buildings and can have a direct impact on the return on a rental investment.