What are service charges and what do they cover?

Service charges are annual fees paid to maintain common areas and facilities in your building or community.

What Service Charges Cover

Common Area Maintenance

• Lobby and corridor cleaning
• Landscaping and gardens
• Parking area maintenance
• Elevator servicing
• Lighting in common areas

Facilities Management

• Swimming pool maintenance
• Gym equipment and upkeep
• Play areas
• BBQ areas
• Business centers

Utilities (Common Areas)

• Air conditioning in common spaces
• Electricity for shared facilities
• Water for landscaping
• Waste management

Security Services

• 24/7 security personnel
• CCTV monitoring
• Access control systems
• Perimeter security

Typical Costs

Apartments

• Budget buildings: AED 8-12 per sq ft
• Mid-range: AED 12-20 per sq ft
• Luxury: AED 20-30 per sq ft

Villas

• Community villas: AED 5-10 per sq ft
• Standalone: AED 3-8 per sq ft

Payment Schedule

• Usually paid annually
• Some communities accept quarterly payments
• Must be paid to homeowners association (HOA)

Example Calculation

1,000 sq ft apartment × AED 15 per sq ft = AED 15,000 per year

Important Notes

• Service charges can increase annually (typically 5-10%)
• Check service charge history before buying
• Non-payment can result in utility disconnection
• Service charges are separate from property tax-free benefits

What's NOT Included

• Your individual apartment utilities
• Internal repairs and maintenance
• Renovations and upgrades
• Parking fines
• Move-in/move-out fees

Tenant vs Owner Responsibility

• Owner is legally responsible for payment
• Typically passed to tenant in rental agreements
• Confirm in tenancy contract who pays