By Staff writer
Dubai Municipality working on system that will reflect changes in rental value
All Dubai expat tenants and property owners are now paying the household charge, Dubai Municipality has confirmed.
First implemented four years ago, every property occupied by expats in Dubai is charged five percent of the rent or rental value (according to rental index issued by Rera) for all general civic services, which is levied through the utility bills paid to Dubai Electricity and Water Authority (Dewa).
“We have covered all residential areas in Dubai now. It was done by the end of 2014,” the head of marketing and housing fees unit in Dubai Municipality’s Finance Department, Abdulla Hashim Abdul Ghafoor, told Khaleej Times.
“But still a few accounts here and there are not reflecting in the system. So every month Dewa is checking the system and including the units that are missed,” he added.
Any changes in the rental value should be registered with the municipality’s centres at Al Twar and Al Manara, but tenants generally only make contact when there has been a decrease.
Abdul Ghafoor said they are working on a system that will either force people to update any changes, or do it automatically.
“A few honest people also are updating the system after their rents increased. But, in the future there will be a plan to somehow enforce people to come and update or do it automatically. We are working on different systems to do that,” he said.
So are the charges for renting:
1. 5% to Agent for Comm'ns
2. 5% Security Deposit
3. Min 3mths in advance Rent
4. 5% for registration of your tenancy agreement
5. 5% (I think) Housing Tax...sorry...Charge
It quite a lot to expect a Tennant to burden at the rates that rents currently are...
..........just added AED1,100 per month to my DEWA bill. It's just taxation but under a different name.
With all the costs that expats incur living in Dubai, this housing fee is grossly unfair. Around June of 2014 my DEWA rates were dramatically increased, then compounded with the housing fee, this had made my utility costs possibly the highest in the world, yet I live in an oil-rich reason. Yesterday DEWA stated that they will not decrease the fuel surcharge in Dubai although the price of petrol in down, this is also not fair. Salik charges to pay for good roads is fair, but to pay this taxation is not and I would like to see the government dissolve this unfair taxation fee.
As residents we are continuously burdened by fees and I understand some of them, but the housing fee should be abolished. With already high utility fees and charges, the housing fee has spiralled our utility costs to outrageous levels. Already houses around me are up for sale and will continue so as utility fees are no longer logical. This will have an impact on new buyers contemplating purchasing in this market. It will change the dyanamics of an entire city.
4 years ago?
I have been paying this "fee" since I went into private rented accommodation, well over 10 years ago.
What always irked me was that I was paying and others were not.
I could never work out how some were avoiding this.
Glad that anomaly is sorted finally.
After all these ever-increasing endless fees & charges, is there anyone who still thinks Dubai is a tax free haven??? Such fees & charges encourage people to spend less and save more, which definitely impact the local retail sector.
@fairness - Me to ever since it started, whereas I kept on hearing about people who had never paid! - Hardly fair.