Homeowners in Dubai can no longer delay service charge payments
RERA NOTICE ASKS HOMEOWNERS TO PAY CHARGES
Business Editor
Homeowners in Dubai cannot delay paying their 2020 service charges any longer — the regulator has issued notice that all such payments need to be made up to date.
“The Real Estate Regulatory Agency will work closely with all community management companies and master-developers to come up with measures to take the necessary steps to collect fees to ensure your community’s well-being,” the notice states. “Everyone should cooperate and commit to pay the fees due to avoid any legal consequences in accordance with the procedures of Law No. 6/2019 of jointly own ownership.”
Need to pay up
In its notice, Rera clearly states why homeowners need to come up with their share. “Without necessary funds in your community accounts, critical services to your community may be at a risk of disconnection and disruption. This may ultimately impact you and your property.”
It’s thus important “your payments towards your community’s service fees are paid on time and in full.”
For property owners, it’s as clear a directive as any. “It appears as if regulators are now signalling that the “holiday period” on service fees is effectively over,” said Sameer Lakhani, Managing Director at Global Capital Partners. “And that OA [owners’ association] companies that have been struggling to collect fees will now be empowered with a legal recourse once again. This is a welcome step for OA companies to be sure, but leaves landlords facing the prospect of low — and even negative — yields as people vacate properties.
Lakhani’s mention of “legal recourse” is particularly valid. OA management companies have to get prior Rera approval to send legal notices to homeowners who have repeatedly
This is a welcome step for OA companies to be sure, but leaves landlords facing the prospect of low — and even negative — yields.”
Sameer Lakhani | Managing Director at Global Capital Partners
defaulted on service charge payments.
With the latest notice to pay up, the path has been cleared to take all possible legal options to pursue defaulters.
Property management companies say their hands are tied as well — “If we do not get those timely payments, there’s no way the property/community upkeep can be maintained to bare minimum expectations,” said a source. “Eventually, when standards slip, it will only be OA management companies that will be blamed. “Everyone understands the pandemic has disrupted peoples’ lives and livelihoods … but properties still need their upkeep. To ensure that, service charges need to be paid.”