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Tue 13 Jul 2010 02:40 PM

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Emaar names and shames first service fee dodgers

Lists of residents failing to pay their dues go up in Emaar project in Dubai.

Emaar names and shames first service fee dodgers
NAMING GAME: The first service fee dodgers are named and shamed by Emaar.

Emaar Properties has carried out its threat to name residents at its projects who have failed to pay service charges by publicly posting their names and addresses.

A photo obtained by Arabian Business shows the names and flat numbers of 15 residents in the Al Jaz cluster of apartments in the Greens who have failed to pay their service fees on time.

The notice reads: “We wish to remind the following owners who have Community Service Fees pending with the community. Kindly note that the non-payment of your dues affects your neighbours and the community.

“The above are requested to settle their dues at the earliest including the applicable Late Payment Fee and Debt Collection Charges. Please contact servicefees@emaar.ae for further information. We thank you for your cooperation.”

Emaar had previously described the practice as “routine” and said that it had made “concerted initiatives" to strengthen awareness among owners that service charges are an investment on the long-term value of their property.

“Informing owners about the service charges is a routine community management procedure in line with the regulations by RERA [Dubai’s Real Estate Regulatory Authority] and other concerned authorities,” an Emaar spokesperson told Arabian Business.

“Emaar is a pioneer in driving modern community management practices, and even before the recent regulations…were issued, Emaar had taken initiatives to set up interim owner committees that represent the owners. These Interim Owner Committees have been working together with the Community Management Department, and we have had a very successful track-record of cooperation from the owners in paying the service charges.”

The move by Dubai’s biggest developer comes as the emirate’s strata laws are being rolled out.

The laws - which allow property owners to play a more active role in the maintenance of their buildings – mean that there is a concern that owners of property in freehold areas could be hit by major unforeseen maintenance charges.

Under the terms of the regulations, owners have to pay routine maintenance and upkeep charges, as well as premiums to cover building insurance and an emergency reserve or ‘sinking’ fund to take care of bigger problems.

But Emaar’s move to name individuals was met with angry condemnation from Arabian Business readers, who accused the developer of lacking transparency.

“It would be better if the developers explained in detail where the monies were going, and not just send us a a statement that hides all out goings! Why do we pay so much for the security guards that happen to be part of the parent company? A proper audit needs to be done to justify the costs,” one reader commented.

“I have been part of several efforts to bring Emaar’s service charges to an acceptable standard. As of 2010 they tell me pay x dirhams, but refuse outright to give any explanation or accountability what the money is for. (except very general and sometimes wrong explanations)...As long as Emaar refuses to give the right accountability to the owners of the funds (it is not their money after all), I cannot see how the situation can be improved,” another Dubai resident responded.

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Sunny 10 years ago

I have no sympathy for either party in this... my sympathy lies with tenants who are stuck in the middle between Emaar, who will deprive tenants of any form of maintenance/customer service/replacement cards etc whilst CSF's are unpaid, and unscrupulous landlords who made hay when the sun shone and are now facing up to the reality that CSF's are taking an increasing share of their rental income.

Greg 10 years ago

I own an Emaar property owner. They are trying to charge me late payment fees for Community Service Fees (CSF), when they managed to have our pool closed for "maintenance" for over four months. They think its acceptable to do this yet not provide the service that the CSF is paid for. Does that sound fair to you?

Sunny 10 years ago

and... what was the pool closed for? I live in the Greens - the pools do close and they are cleaned and retiled. Are you suggesting they just closed it for the hell of it? If the lift stopped working for a day - would you not pay your fee? I dont think your logic is well thought through. If you are a landlord - then what about your tenant? You are contractually obliged to your tenant to pay your fee.. yet decide because the pool is being fixed, you dont want to. If the roof needed replacing - would you withold your fee for the year or so it would take?

Joe 10 years ago

When will AB print the list of people that Emaar owes money to, the hundreds who have invested in off plan properties that were never built? But Emaar says they will build ... maybe ...if they feel like it ....until then our funds are locked up or lost forever .... So how about asking Emaar for that list AB? How about it Ed??

Errant 10 years ago

Based on actual laws, Emaar has no rights to collect fees anymore. They have to appoint an Owner association with independent bank account and they should collect. Emaar is just trying to collect the money for thier pockets. RERA has to stop them if they really want to appear as the regulatory body looking after Dubai Proeprty market.

Anonymous 10 years ago

You can "what if" all day long. Emaar is wrong in not communicating with their owners and providing full transparancy when it comes to timely repair & maintenance issues....end of!

Greg 10 years ago

Sunny.... Please read my comment again before getting on your high horse and being quite as insulting as you have just been. I OWN and LIVE in my property in The Greens. I was pointing out that Emaar have a duty to fulfil the obligations for which CSF is paid. And that in this instance they have failed massively. A FOUR month pool closure is not standard maintenance. Oh yes, and I checked every day to see if workers were or had been on site. A total of ten days over the period. Really. I'm staggered by your response.

Kelly 10 years ago

This is an excellent idea. I wonder can ALL businesses post their list of bad debtors, the amount and how long the debt is overdue. Many years ago, UK SME's did exactly that in the London Evening Standard and it certianly got things moving. I wonder would the Gulg News, National, Kaleej Times, Al Bayan etc be prepared to champion small business owners case for the same. Come on free Media, lets us know.

Fernando 10 years ago

It appears that the Flagship Company Emaar & Many others in UAE are operating inconsistently. If the UAE is to build investor confidence & be true to its core vison, priciples & values companies such as Emaar must lead the way and contribute to the great vision of UAE. Instead of panic, inconsistency, lack of transparency Emaar should take a step back.....review its vison, mission, core values & guiding principles & realign with customer focus; Emaar's Mission, Vision, Strategy, Values are Corporate Mission Our mission is to transform Emaar into a one-stop, global solution provider for lifestyle, including homes, work, play, leisure, retail, health, education, finance, industry and more. Emaar of tomorrow will become synonymous to "Quality Lifestyle across the Globe" Corporate Vision Our vision for Emaar is its transformation into one of the most valuable lifestyle developers in the world beyond real estate development. Corporate Strategy To become one of the most valuable companies in the world, Emaar will adopt a strategy of business segmentation to create different business clusters functioning as different growth engines. These growth engines will grow and converge into a single entity known as "The Emaar Group PJSC". Corporate Values Customer Focus Trust, Integrity & Fairness Open Communication Employee Development & Positive Work Environment Innovation, Speed & Execution Social Responsibility

Fernando 10 years ago

http://www.emaar.com/index.aspx?page=about-mission Mission, Vision, Strategy, Values Corporate Mission Our mission is to transform Emaar into a one-stop, global solution provider for lifestyle, including homes, work, play, leisure, retail, health, education, finance, industry and more. Emaar of tomorrow will become synonymous to "Quality Lifestyle across the Globe" Corporate Vision Our vision for Emaar is its transformation into one of the most valuable lifestyle developers in the world beyond real estate development. Corporate Strategy To become one of the most valuable companies in the world, Emaar will adopt a strategy of business segmentation to create different business clusters functioning as different growth engines. These growth engines will grow and converge into a single entity known as "The Emaar Group PJSC". Corporate Values For Chairman's message on Corporate Values (WindowsMedia Format) Click Here Customer Focus Trust, Integrity & Fairness Open Communication Employee Development & Positive Work Environment Innovation, Speed & Execution Social Responsibility