RERA plans service charge regulation for Dubai landlords

Industry experts say it will help tenants signing a new lease for property in Dubai

anne whittingham

I am an owner in EG Rose building I have a small studio. Damac properties are charging me half my rental income on service charges. I want to contact Rera but do not know how to go about this. Damac properties were very late with the handover of their development but the service charges are outrageous it is no wonder some home owners are not paying them can anyone advise me on what to do.


It is quite true. Every year they find new types of charges. I have brought an apartment in Abu Dhabi from them. Apart from high service charges they charge demand fees and separate cooling fees even though they have no meter for the apartment. This year they have introduced another fee as a parking maintenance fee of over AED1600. If you buy such properties always be ready with a lawyer for everything or accept whatever they say from time to time.


RERA is biased. RERA was formed to protect the developers and not individual investors.

Mad at the situation

RERA is a big issue for investors as any action they take is just to squeeze them further from any possibility to stand to developers. If RERA wants to correct something, they should start by obliging developers to comply with the laws, audited books, register HOA to manage the place in full transparency and then if the landlords don't pay service charges, the HOA will deal with them as they have no excuse. What RERA is doing is standing by developers against investors and this will push back genuine investors. Same old story since 2007 and nobody is willing to do anything. The market will stay in hands of speculators and dodgy money. this will bring another market crash in the next year. The market is stll immature and not safe for long term investment. RERA should either act in the right direction or accept full responsibility for the continuous collapse of the RE in Dubai.

alaa maha

The problem is in Nakheel and how they are handling the issue. I am sure Emaar has the same issue with landlords defaulting on their service fee but you don't hear about it as much.. Emaar can afford to survive without these payment but Nakheel are squeezing every penny they can from their investors...


The problem is not Nakheel it is with lack of enforcement of the laws which are in place, the Landlords have to pay their maintenance charges (debts) and if they cant then their debts should be handled as other debts are handled in the Emirates!

Paolo C

Sorry for Rera, I don't trust their word more than I would trust a service charge calculation of any developer in Dubai. Service charges are basically a hidden extra income for developers. No one can ever question and no developer has ever shown bills to prove their expenses. Let's be clear. UAE is a tax free country but its' full of hidden fees and small robberies.

Natasha Collier

I too am a property owner in dubai, international city. I am facing huge problems with Nakheel at the moment in trying to receive my title deeds. I need advice and quickly. Nakheel have reccently billed me a huge bill for Service Charges dating back years since i bought the property and when i query them on them they have nothing to say apart from contact RERA. I cannot obtain my deeds until these charges are paid, i have never once received invoices for these charges and i feel they have no right at this stage to charge me. It really is frightening how they have landed me with this bill now..
Can anyone advise me on this issue and also on trying to obtain title deeds.
I understand people saying about the tenants but please understand as a landlord who invested in dubai, these charges are out of order and way too high for any landlord to pay when rents are so low and also when no invoices are sent from the company. PLEASE help me....


WHY do we need to dump our hard earned money, and literally beg helpless? Cash is the king, better we take whatever we get and move on. Too risky for migre return, hidden agenda is on to acquire back.


cases of default on service charge for maintenance are on the rise and all that OA can do is to restrict access to the pool, gym & some other minor facility. In modestly finished & modestly priced projects residents are not addicted to use common facilities. So defaults could rise resulting in ghost towers/projects with adverse impact on the real estate market which just picking up after the 2008 collapse.
Stricter punitive measure like preventing access to the flat is necessary and inescapable.
Simultaneously, the rate at which service charge is levied needs to be scrutinized and made affordable.


This will not benefit tenants as many owners will just lock the apartment and will refuse to rent. This will increase the rental cost in Dubai and make some areas ghost towns. Developers will be badly hit as their shops will have no more customers and they will close. developers wil loose on rentals as well. Empower and Dewa will loose on income. just another bad move from RERA.


Depends on the owner. Those who dont want to rent are already not doing so. You do realize that by not renting out their properties, landlords lose out on rental income, and effectively own a negative yield asset, right? Some may be stupid enough to do so (or wealthy enough to weather the negative yield), most wont.


RERA is not fir to investors or any small player in Dubai market. They are always protecting developers against their obligations. They make statements about regulating the market but they don't act when a developer doesn't comply. What is the origin of all issues in Dubai RE market? the answer developers. They sold the apartments but impose the manager, the security, the maintenance, the cleaning company and the service charges. They don't disclose anything to owners. And RERA approves their service charges without questioning them. Other emirates have a law and they implement it. Only Dubai is not implementing the laws. This will have an impact as investors will sell in Dubai and buy in another emirate. RERA was the first to issue the law and is the last to implement it. the disfunctioning at RERA is every day more obvious

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