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Service Charge (Dubai)

A service charge in Dubai is an annual fee levied by a building's master developer or owners' association to cover the cost of maintaining common areas — including lobbies, pools, gyms, security, and landscaping. Service charges are the legal obligation of the property owner (the landlord), not the tenant. Any contractual attempt to pass service charges to the tenant is technically void under RERA's standard contract principles, though it is not uncommon for landlords to attempt this.

Law No. 27 of 2007 (Ownership of Jointly Owned Properties in the Emirate of Dubai), MOLLAK System

In Depth

Service charges in Dubai are regulated by the Owners' Association Law (Law No. 27 of 2007) and are administered through the Real Estate Management System (MOLLAK), run by RERA. Each unit is assigned a service charge rate based on the unit's share of the building's common areas (measured in terms of percentage of total floor area).

The obligation to pay the service charge belongs to the person registered as the owner in the DLD property register — i.e., the landlord, not the tenant. The Annual General Meeting of the Owners' Association sets the annual service charge budget, which RERA must approve.

Some tenancy contracts include clauses requiring the tenant to pay service charges. While RERA's standard contract does not include such clauses, they are not uncommon in privately drafted contracts. Tenants should review any such clause carefully: if the service charge is substantial (some Dubai buildings charge AED 20–60 per sq ft annually), this can add tens of thousands of dirhams to the effective annual cost of the tenancy.

If a landlord fails to pay service charges, the Owners' Association has the right to restrict building access or services for the delinquent unit. In some cases, this has led to tenants being locked out of building facilities because of their landlord's unpaid charges — a situation the tenant can raise at the RDSC.

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