Legal notices being issued to property owners in Dubai on 2020 service charge payments

Property owners

Property owners in Dubai: Property management companies confirmed that legal notices are to be issued to the homeowners who haven’t paid the service charges in the first six months. They have received the regulator’s approval to send notices after the service charges drop off by 50-60 percent in the first six months.

Any further delay in the collection of fees will result in Creating problems in the quality of maintenance. If homeowners keep delaying the payments, necessary penalties will also start occurring, said the CEO at one of the leading owners association management companies in Dubai.

According to the legal notices, homeowners will be given 15 days to clear their dues. The property management companies have to get a clearance from the Real Estate Regulatory Authority (RERA) before issuing the notices

Once the notices are issued, homeowners will have limited relaxation for trying to delay payments. They will have the only option of quicken the matter in front of authorities and pursue any other legal options.

Service charges disputes have been sharpening in recent months more particularly after the pandemic hit the world. And it created a situation where property dealers have seen a decline in their personal income.

OA company head said that this is not the way property management works. Nonpayment of the fees has accumulated so much and deteriorated the property upkeep.

Dubai

On the part of property owners, they have requested to RERA to look into their concern about service charges. the owner of a unit at a high-rise in JVC (Jumeirah Village Circle) said that they have asked RERA for forensic audits in how the service charges rates are fixed and how the fund collected used in the last years.

OA company sources say that trying to reduce the service charges and then expecting services to be the same or even improving is not feasible. One option can be trying to reduce the utility charges, which represents the 30-50 Percent of the charges.

If that doesn’t happen then the only thing they can do is to rationalize the workforce in the company. The challenge is here is not to compromise on the value of assets. In the final, reducing costs will take time and the transition would be painful for all the players.

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