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How do service charges work in Dubai?

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Service charges fund the common areas of a jointly owned building or community. Under Law 6/2019 the management company proposes an annual budget, RERA approves it through the Mollak system, and owners are invoiced per square foot of their unit — typically in two or four instalments. The owner, not the tenant, is liable, and unpaid charges block clearance certificates and most community move-in permits.

Who sets the amount?

The RERA-licensed management company (or the master developer's community-management arm, such as DHCM or ECM) prepares a budget audited and approved in Mollak. The rate is published per square foot by community on the DLD service charge index, so you can compare your invoice with the approved rate for your building.

What does it include?

Cleaning, security, landscaping, pool and gym, lifts, chiller or district-cooling capacity charges in some towers, insurance, reserve fund contributions and management fees. Master-community charges may be billed separately from building charges.

How do I check and pay?

Invoices are issued only through Mollak to a regulated account; pay through the management company's portal or bank. Check the approved budget and rate on the DLD index. Owners can request the audited accounts and raise concerns with the owners' committee (advisory under Law 6/2019).

What happens with arrears?

The management company can refuse a clearance certificate, which blocks resale, and community managers require settled dues before issuing tenant move-in permits. Under Law 6/2019 unpaid charges can be pursued through the RDC with a lien on the unit.

How Leasifys helps

Record the invoice as a recurring expense with the rate × square feet check, see it in the unit's yearly P&L and split by owner share, get reminders before due dates, and estimate a budget with the service-charge estimator.

Try the calculator

Information from the laws and official portals as at the date shown, not legal advice. Check figures on the official channel before acting.

Sources

Frequently asked questions

Can the landlord pass service charges to the tenant?

Only if the contract says so explicitly; by default they are the owner's cost. Many contracts pass through cooling consumption but not capacity charges.

Why did my charge go up?

Budgets change yearly with RERA approval; district-cooling and reserve-fund lines are the usual drivers. Compare the approved rate per square foot on the DLD index.

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