Dubai property service charges: What the published figures cover

When someone quotes a Dubai building’s service charge per square foot, ask for the budget year, the property use and the unit’s latest invoice. The rate is useful for comparing buildings, while the invoice and statement show what was billed to that unit and what remains unpaid. The Dubai Land Department (DLD) Service Charge Index expressly excludes arrears. If you are buying, that distinction matters because a current annual budget and the balance on the seller’s account answer different questions. DLD’s public Service Charge Index

Identify the charge and what it funds

Dubai’s jointly owned property law provides for owners to pay an annual share toward managing, operating, maintaining and repairing common parts. Think of the entrance, corridors and shared equipment identified in the building’s governing documents. The law bases the owner’s share on the unit area recorded in the Property Register under the approved calculation method. Ask the manager which parts of the building are covered and where responsibility passes to the individual owner. The distinction matters when a defect affects both a private unit and a shared system. Jointly owned property law, Article 25

The same law separately describes usage charges for common facilities in a master project. If an invoice or sales quote has a building charge and a community line, ask whether the figures are already combined in the approved calculation or need to be considered separately. Ask the manager for the applicable project and period. Two buildings in the same neighbourhood can have different budgets and responsibilities, so a quote from one tower gives you only a starting point for questions about another. Jointly owned property law, Articles 26 and 27

Separate those approved common costs from electricity, water or cooling billed directly to your unit, as well as repairs you arrange inside it. If you see a cooling line, ask whether it covers the shared system, your unit’s capacity or consumption, or some other charge. The name alone may tell you little about how it was calculated. Ask the manager to show you which document supports the amount before adding it to a purchase or ownership budget. RERA’s guidance on classifying outstanding balances

Find the approved budget for the right unit and year

Open DLD’s Service Charge Index and choose the project search if you are comparing buildings. Use the exact project, the relevant use and the year. An office and an apartment in the same development can require different usage selections. If the development has multiple towers, compare the name in the result with the building on the title deed or offer. Note which budget year you selected and the date you ran the search. Keep the result with your other purchase documents so you can check it again if a quote changes. Project, usage and year search · DLD’s service charge guidance

For an identified unit, the title deed route asks for the certificate number and year, the property type and the budget year. The certificate year identifies the document. The budget year identifies the charge period you want to examine. They can differ. If the lookup does not return a result, check both years and ask the manager to confirm the registered name and approved budget. Treat an empty search as a question to resolve before putting a figure in your budget. Title deed lookup fields

DLD explains that Mollak supports service charge approvals, invoices and approved payment channels. The jointly owned property law requires RERA approval before the management entity collects common charges within its scope and provides for a temporary budget where necessary. If the manager gives you a forecast or a proposed figure for the next year, ask whether it is approved and which period the current invoice covers. That helps when a sale happens near a change in budget year. DLD on Mollak approvals and invoicing · Budget approval under Article 27

Reconcile the rate, the invoice and the statement

Ask for three records when you are checking an amount. Start with the approved charge for the project and period. Then find the invoice for your unit and compare its dates, area and charge lines with the approved calculation. Finally, get a statement of account showing earlier invoices, payments, credits and the balance as of a stated date. If you paid recently, look for the entry matching the receipt before assuming that the figure on an earlier statement is still due. RERA’s balance verification circular

For example, suppose an approved rate is AED 14 per square foot and the verified chargeable area for the unit is 850 square feet. If that rate applies to the whole confirmed area for the year, the annual charge in this example is AED 11,900. Suppose the invoice you are checking is for one of four equal billing periods and shows AED 2,975. The statement also includes AED 1,200 brought forward from an earlier period and records a payment of AED 500. The resulting outstanding balance is AED 3,675. The published annual charge and the outstanding amount are both meaningful, but they describe different things. The example uses hypothetical amounts and billing dates. DLD’s unit charge calculation guidance · Index arrears exclusion

If your own invoice does not match a simple rate-times-area estimate, ask which figure in the calculation differs. Check for a different period, the area used by the manager, a separate charge or a credit. If the area includes a balcony or other element and you cannot reconcile it, ask for the approved calculation for the unit. Avoid carrying a rate from one document over to an area from another until you know the units and area basis match. If you compare one quote in square metres and another in square feet, first bring them to a common basis or compare the verified annual totals directly.

Ask what goes into the reserve and the operating budget

Dubai’s jointly owned property law provides for a separate cash reserve for emergency expenses or replacing common equipment. Ask the manager which line is the reserve contribution and what the rest of the approved budget is intended to cover. A contribution toward replacing shared equipment can appear in a year when the replacement itself does not take place. If you are comparing budgets across years, ask about changes in recurring costs, the reserve and any specific approved work. That can help you distinguish a lasting increase from a line tied to a particular budget. Jointly owned property law, Article 30

When comparing two properties, ask for approved figures for the same budget year and check which charges are included in each. If one quote includes a reserve contribution or community charge and the other excludes it, add the missing amount if it applies before comparing. Keep bills that vary with your use of the unit in a separate column. You can then compare the cost of owning the two units without counting a shared service twice or assuming you will use the same amount of cooling in both.

Confirm the balance and the allocation before a sale

If you are buying a resale, ask for a recent statement and check the date it was prepared. If the balance includes an earlier invoice, ask what period it covers and have the parties agree how it will be settled before transfer. If the seller already paid an invoice that extends beyond transfer, ask whether any reimbursement is agreed and record the basis and dates. RERA’s guidance for auditors checking balances distinguishes the transfer date on resales from the handover notice date on initial sales. Those dates help identify which period an amount belongs to. Get the final allocation in the sale paperwork. RERA guidance on balances and transfer dates

Ask for the next bill date as well as the annual total. A charge budgeted at about AED 1,000 a month for comparison may be invoiced in larger amounts on fewer dates. Confirm who will update the owner details with the manager and where the first bill will be sent. Keep the transfer documents, current statement and any agreed adjustment together. If a later invoice carries an old balance, those records give you the dates and evidence you need to ask the manager to reconcile it.

Use the verified invoice and payment channel

DLD says owners can pay through approved channels after receiving a Mollak notification. If paying into the regulatory bank account listed on the invoice, DLD says to send the payment slip to the management company. Confirm payment instructions with the manager using contact details you already know if a message asks you to use a different account. Save the receipt and check that the payment appears on the next statement. If it is missing, provide the unit reference, invoice, date and receipt so the manager can trace it. DLD’s Mollak payment instructions

Compare changes between budget years

Keep the previous year’s approved figure and compare it with the current one for the same unit. If the amount rises, ask the manager for a breakdown that explains the change. Start with the approved rate and chargeable area, then check whether the same items are included. A higher annual charge could reflect a different operating budget or reserve contribution. A higher account balance could instead reflect an old invoice or a payment that has yet to be credited. Comparing annual charge with annual charge gives you a better starting point than comparing the amounts due on two unrelated statements. DLD budget-year lookup and arrears exclusion

Suppose an apartment’s annual charge moves from AED 11,900 to AED 13,600. The difference is AED 1,700, or about AED 142 per month when averaged for budgeting. If the new statement says AED 5,000 is due, that figure may cover a particular invoice and earlier entries. Ask for the statement lines rather than attributing the entire difference to the new budget. The due date is the important number for cash flow, while the annual charge helps you compare the building with another one.

If the manager and your records show different balances, start with the first line on which they differ. Send the invoice number, the period and any relevant receipt. Ask for a revised statement if an entry is corrected, and check that the adjustment appears in the running balance. If you are checking the amount for a purchase, ask for an updated statement close to the transfer date so the parties can see recent bills and payments before settling their agreed shares. RERA’s guidance on reconciliation and adjustments

For a building comparison, set the statement balance aside after you have checked it. Keep the approved annual charge, the payment schedule and any separately billed services in the comparison. For a transfer, bring the statement balance back into view alongside the seller’s receipts and the agreed allocation. Using the two views together helps you budget for the property you are buying and settle the specific account that comes with the transaction.