Service and utility charges for property in Dubai: what they are and how to pay them

A good property broker in Dubai should not only guide you through the entire buying process, but also have an excellent understanding of the market. Many investors are interested in the question: what service and utility fees you have to pay if you buy an apartment in Dubai. Let's look into the problem together.

What are service charges

These are mandatory payments that the property owner has to make for the maintenance of the residential complex. Developers in Dubai try to provide future owners not only with accommodation, but also with all sorts of ‘bonuses’. Therefore, inside the complexes usually build everything necessary for a comfortable pastime (and sometimes even more!). For example, in Dubai it is considered normal to have a swimming pool, a children's room, a fitness room, etc. Many residential complexes also include their own cinema, a tennis or golf court, a coffee shop in the lobby, a common meeting room and other useful ‘chips’.

However, not everyone realises that this convenient infrastructure is not included in the price of the property, you have to pay for it separately. The service fee includes the costs of cleaning the territory, maintenance of elevators and security systems, maintenance of swimming pools and sports facilities, concierge service, payment for security. In general, the more amenities a residential complex has, the higher the service charge.

How often you need to pay

Service charges are usually paid once a year, depending on the managing company's policy. It is important to ensure that the ‘comfort charge’ is paid on time to avoid problems and to avoid the possibility of fines or restrictions on the use of public spaces in the apartment complex. All these payments are mandatory. Even if you do not live in the residential complex, you still need to pay the bills.

Amount of service charges

The amount of service charges depends on several factors:

• the prime location of the neighbourhood in which the property is located;
• area of the property;
• the level of services provided in the complex.

The amount of the service charge will not come as a surprise to the investor. It is specified in advance in the contract. On average in Dubai, the annual service charge starts from AED 9000. If you do not want to pay large sums, it is worth considering the purchase of a townhouse or villa. Usually, they have much lower service charges.

Utility charges

Another additional expense when buying an apartment that you can't do without. Once your residential complex is commissioned, you need to connect to the Dubai Electricity & Water Authority (DEWA)*. If this is not done - the apartment will remain without electricity and water supply.

There are two pieces of news for investors in Dubai: good news and bad news.

The good news is that you don't have to pay for heating - Dubai's climate can cope with ‘heating’ on its own. The bad news is that you can hardly save money on this, because you have to pay for the air conditioning system, which is in any apartment.

When buying a home, you should pay attention to the type of house. If it is chiller free, the air conditioning charge will be automatically included in the DEWA utility bill. If the house type is not chiller free, you will have to pay for air conditioning separately. Also do not forget about the internet connection.

Example: for a standard one-room apartment, the utility bill is approximately 330-404 AED per month. If you want to find out the exact amount of your payments, use the tariff calculator on the DEWA website.

What documents are required to connect

You can connect utility services both online and offline.

• If you are a property owner, you will need a document that proves ownership.
• For Dubai residents - Emirates ID.
• A copy of your passport (for everyone).

There will be additional charges to pay when you connect. For example, account activation includes a deposit ( AED 2000 per apartment), payment for the meter and its connection (from AED 130). If you want to open an account offline, you will have to go to a DEWA centre.

How to pay utility bills

There are several ways to pay for utilities. The easiest way is to use the DEWA app. You can also pay on the website, in cash at Etisalat ATMs or activate auto payment.

What to do in case of a breakdown

Firstly, do not panic!

If the breakdown is in the common area, you should call the plumber on duty.

If the breakdown occurs in the apartment, there are two solutions. Those who live in a new building are usually given a 12-month warranty from the builder. In this case, the master will come free of charge. After the warranty period expires, you will have to call a specialist from a private company yourself.

Who pays the service and utility charges

Many investors wonder: if I rent out an apartment, who will pay all the charges? It should be understood that service charges always ‘hang’ on the owner. If the investor rents the apartment for a long term, all utilities will be paid by the tenant.

Conclusion

Service charges

• To be paid by the property owner.
• To be paid once a year.
• Required to be paid even if you do not live in the complex.
• They include the costs of cleaning the territory, maintenance of lifts and security systems, maintenance of swimming pools and sports facilities, concierge service, security guards, etc.

Utility charges

• If the owner rents the apartment, the utilities are paid by the tenant.
• They are paid on a monthly basis.
• This includes water, light, air conditioning, etc.

*DEVA is the authority that handles electricity and water in Dubai.