Understanding Service Charges in Dubai Properties

 These are approximate values and may change depending on the building’s age, facilities, and management.

How to Check or Verify Service Charges

You can check and verify the approved service charges through the Dubai REST app or the

Mollak system by:

1.Searching for your building or community

2.Viewing the current approved service charge rate

3.Reviewing the breakdown of fees

This transparency helps prevent overcharging and allows for proper budgeting.

Can You Dispute Service Charges?

Yes. If you believe the service charges are unjustified, inflated, or not reflected in the actual services provided, you have the right to:

• Request a detailed breakdown from the Owners Association or Management Company
• Raise the issue through the Mollak platform
• File a complaint with RERA or the Dubai Land Department

Service Charges and ROI: Why They Matter for Investors

Service charges directly affect your net return on investment (ROI), especially if you are a buy-to-let investor.

Example:

Let’s say your apartment yields AED 100,000 in rent annually. If your service charges are AED 20,000, that’s a 20% deduction from your gross income. Higher charges = lower net ROI.

When investing, consider the balance between high-quality amenities and reasonable maintenance costs.

Tips for Managing and Reducing Service Charges

1.Buy in well-managed communities with efficient cost controls

2.Avoid over-amenitized buildings if you’re focused on ROI

3.Request annual service charge reports to monitor fund usage

4.Attend Owner Association meetings to vote on key financial decisions

5.Compare similar properties in the same area for benchmarking

Know Before You Buy

Understanding service charges is crucial for anyone buying property in Dubai. These fees play a vital role in maintaining the long-term value and livability of your asset. By knowing what to expect and how to manage or verify these charges you make smarter, more profitable real estate decisions. Whether you're a first-time buyer or a seasoned investor, always factor service charges into your budget and investment projections. They may not be as visible as the purchase price, but their impact is equally significant.