Dubai homeowners still to get the measure of new system to determine property sizes
▶ Residents query how service charges are calculated after some are surprised to learn their fees rose
New rules governing the community service charges paid by Dubai homeowners have led to some residents receiving bills of more than Dh1,500.
The system used to calculate the size of a property changed this week, Dubai Land Department said.
The revamp relates to how balconies and terraces are measured and included in a property’s size.
A pilot run of the changes was carried out in several communities and for many property owners the costs went down.
But some said they were charged higher fees.
Service charges generally cover maintenance and the upkeep of communal areas. In some cases they can also include air conditioning.
The charges are paid by owners or landlords, not renters.
Indian businessman Harsh Nahar, 41, said he paid Dh14,200 last year in service charges for his apartment in The Greens.
He said the size of the property was recalculated from 69 square metres to 97.5 square metres to include his groundfloor terrace.
He received an email explaining the changes and a bill from Emaar for Dh1,576 extra for this year.
“Emaar said the Land Department recalculated the size of the property and I had to pay the new charges,” he told The National.
“The outdoor area is closed off and there is nothing there except a light.
“There is nothing connecting it to any community area that may incur additional charges.”
Other property owners in The Greens received similar bills.
“We have the same problem: Dh600 added to each quarterly bill. This is in addition to the annual fee which I have paid,” one owner wrote in a Facebook community group.
But many other owners benefited from the changes, being charged less after their homes were remeasured.
Sean Corron, 27, a programmer for a government department, has a two-bedroom apartment in The Views.
His service charges were reduced from Dh5,385 per quarter to Dh5,160, saving him Dh900 per year.
He said he bought his apartment for Dh1.75 million in August last year and was paying about Dh27,000 a year in service charges.
“I only found out through The Greens Facebook forum. I have no idea what the service charges are paying for exactly,” he said.
“When I checked my Emaar One mobile app, I noticed my fees have actually dropped for this last quarter.”
As part of the changes, all landlords and homeowners must sign up to a new payment app called Mollak, launched by the land department’s regulation agency, Rera.
In a four-month trial, 1,240 buildings and 89 property management companies enrolled.
The system will be rolled out across the city from January.
That means payments will be made to that system instead of a community management company or developer, with property owners to receive a breakdown of what their service charges are spent on.
Marwan bin Ghalita, chief executive of Rera, said homeowners in the pilot should not have had an increase in their bills or been charged more by their developer.
He said residents would not be penalised simply because they have outdoor space as there are “no services on it, such as air conditioning or other utilities”.
“From the financial audit we have done, we know the overall service charges will come down. The system will create more transparency,” he said.
Mario Volpi, leasing manager at Engel & Volkers and a property columnist for The National, said more clarity was needed on the changes.
“Any new rules designed to improve the lives of property owners are welcome, but why a balcony or terrace should make any difference to service charges is not clear,” he said.
“Although agents are not the first to be informed of changes from Rera and the land department, none of this has been communicated to us.”
When I checked my Emaar One mobile app, I noticed my fees have actually dropped for this last quarter SEAN CORRON Homeowner in The Views