Across jointly owned buildings, EGSH helps owners and tenants navigate these rules, coordinate with Dubai Land Department (DLD), the Real Estate Regulatory Agency (RERA) and the Rental Disputes Centre (RDC), and complete the required procedures correctly.
In Dubai, “service charges” and “usage charges” in jointly owned properties are annual amounts that fund the operation, maintenance, and repair of common areas, and they must be approved by RERA before they are collected. Because leases sometimes shift these costs between landlord and tenant, confusion often arises over who should pay, whether the amounts are correct, and how to challenge unapproved or excessive demands.
This article explains how Dubai service charges law works in practice: the legal definitions of service and usage charges, who is responsible to pay under Dubai Law No. 6 of 2019, how charges are calculated and collected through systems such as Mollak, how to handle service charge disputes with landlords, which authority you approach for complaints, and what risks arise if payments are not made.
What Are the Service and Usage Charges in Dubai Jointly Owned Properties?
In jointly owned real estate in Dubai, “service charges” are annual financial charges approved by RERA and collected from unit owners to cover the costs of managing, operating, maintaining, and repairing the jointly owned property. This covers the shared parts of the building or community, not the private space inside an individual unit.
“Usage charges” are also annual financial charges approved by RERA and collected from owners to cover the management, operation, maintenance and repair of common facilities in the wider master project. These are sometimes called master community charges and relate, for example, to shared landscaping, access roads or community facilities serving several buildings.
Jointly owned property service charges and joint-service charges typically include a combination of: security and cleaning of common areas, maintenance contracts (for lifts, fire systems, HVAC in common zones), utility bills for common areas, administrative and management fees, building insurance premiums, master community (usage) charges and contributions to a reserve fund for major future repairs. The exact mix and level of these charges differ from one project to another, depending on the services provided, the size of common areas and the size and number of units sold.
These charges are distinct from regular in-unit utilities such as electricity and water billed by the utility provider. Those individual consumption charges are usually paid by the party actually using the unit (often the tenant), whereas service and usage charges relate to the building's or community's shared structure and facilities.
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Who Is Legally Responsible to Pay: Owner, Tenant or Developer?
Dubai Law No. 6 of 2019 on jointly owned real estate properties is the key law governing Dubai service charges. Article 16(b), as applied by the DLD, provides that, unless the unit's lease agreement states otherwise, the owner is liable to pay the service and usage charges. This means the legal default is that the property owner, not the tenant, must settle these building-related charges.
In all cases, the owner is not discharged from liability to pay service and usage charges if the tenant fails to pay them. Even if a lease says the tenant should pay some or all of these amounts, the management entity still looks to the owner for settlement; any recovery from the tenant is then a matter between landlord and tenant under their contract.
The RDC has also confirmed that the owner is obliged to pay charges for jointly owned real estate, including chiller (district cooling) charges for common areas, unless the lease provides otherwise. This distinction matters because cooling charges for shared lobbies or corridors form part of jointly owned property costs, whereas any separate cooling charges billed directly for in-unit consumption are typically treated like other personal utilities tied to use of the flat.
Law No. 6 of 2019 further states that every owner must pay to the management entity the owner’s share of the annual service charges, calculated based on the ratio of the area of that owner’s unit to the total area of the jointly owned real property, using a method approved by the Director General of DLD. This proportional approach also applies to developers while they still own units.
Developers have specific obligations as owners. They must pay their share of annual service charges for unsold units. In addition, where a sale or reservation contract provides that the developer will pay service charges on behalf of the purchaser for a period, the developer is bound by that agreement and must settle those amounts with the management entity. Purchasers should therefore review their sale contracts to understand whether any such arrangement exists and when it ends.
From a practical standpoint, the lease can redistribute costs between landlord and tenant – for example, by stating that the tenant will reimburse part of the approved common area service charges – but this does not change the owner’s primary responsibility towards the management entity. Both parties should therefore read the lease clauses on building charges carefully before signing.
Typical Responsibility Split in Practice
The following table summarises, in simplified form, who is normally responsible for key categories of charges under the DLD laws, before considering any special lease clauses:
| Type of Charge / Issue | Default Responsibility Towards Management Entity | Common Contractual Allocation Between Parties |
|---|---|---|
| Common-area service charges | Owner | May be passed on fully/partly to tenant under lease |
| Usage / master community charges | Owner | Sometimes included in rent or recharged to tenant |
| Chiller for common areas | Owner | Can be indirectly recovered via rent or service fee clauses |
| In-unit utilities (DEWA, in-unit chiller, etc.) | Not a service/usage charge; billed by provider | Typically paid directly by tenant using the unit |
| Service-quality complaints | Owner (as unit owner) files with DLD channels | Tenant often raises issues via landlord or building management |
| RDC jointly owned property disputes | Usually owner (or management entity) as party | Tenant may be involved if lease allocates payments |
This table illustrates why many service charge disputes Dubai residents face arise not from the law itself, which is clear about owner liability, but from how individual leases attempt to share or pass on those costs.
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Typical Dispute Scenarios Between Landlords And Tenants
One frequent scenario is where a tenant receives a demand to pay all service charges directly to the building management, but the lease is silent or unclear. Service charges remain the owner’s legal responsibility unless the lease clearly states that the tenant must bear them; even then, the management entity will still consider the owner as the responsible party if payment is not made.
Another common area of disagreement is chiller charging. A tenant may argue that chiller charges demanded through the service charge bill are for common areas and should be paid by the landlord, while the landlord insists all chiller costs are the tenant’s responsibility. The DLD and the RDC have clarified that charges for jointly owned property, including district cooling for common areas, are the owner’s obligation by default unless the lease explicitly provides otherwise.
Service quality often triggers disputes as well. Tenants may complain about poor cleaning or maintenance of lobbies and facilities, yet still be asked to indirectly contribute to service charges through their rent or a separate fee. Owners pay service and usage charges to fund these services, and if an owner considers the service level inadequate, they can file a complaint via the Real Estate Violations System in the Dubai REST application, the official platform for such issues.
A further scenario involves investor owners challenging an increase in jointly owned property service charges they consider excessive compared with previous years. Because RERA must approve service charges before they are billed, owners can check the officially approved level for their building using the Service Charge Index on DLD’s website or through the Dubai REST app. If the amount demanded exceeds the approved amount, this provides a clear basis for objection.
How Are Service Charges Approved, Calculated and Collected?
RERA plays a central role in regulating jointly owned property service charges and usage charges in Dubai. Management entities are not allowed to claim service charges from owners until the proposed charges have been reviewed and approved by RERA. DLD has stated that if owners are requested to pay unauthorised service charges, legal measures will be taken against violators, reinforcing the requirement to rely only on approved figures.
Once RERA has approved the annual budget and service charge level for a project, these charges are administered through the Mollak system, launched by the Dubai Land Department and operated by RERA. Mollak jointly regulates properties and their service charges, monitors payments, and enforces governance standards for property management companies. It also issues electronic service-charge approvals and quarterly invoices to unit owners based on their respective shares.
Service charges must be paid into regulatory bank accounts approved by RERA, not into private or unregistered accounts. Owners are notified of the amount due by email or text message from the Mollak system and can pay using several approved electronic channels, including Noqodi wallet, credit card, net banking or bank deposit. This controlled payment flow is designed to ensure that funds collected are used for the maintenance and operation of the building as approved.
The calculation of each owner’s share, as set out in Law No. 6 of 2019, is based on the ratio between the area of their unit and the total area of the jointly owned real property, following a method approved by the Director General of DLD. Owners can therefore expect their invoices to reflect this proportional share; if they own more than one unit, each unit will have its own calculated contribution according to its size.
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What to Do if You Dispute Service Charges or Service Quality
The first step in any service charge disputes Dubai owners face is to verify whether the charges demanded are RERA-approved. Owners can obtain official information on approved common services charges for their building or project through the Service Charge Index on the DLD website or via the Dubai REST application. Comparing an invoice with this index helps distinguish a legitimate increase from an unauthorised amount.
Next, both landlords and tenants should review their lease agreement. Any clause dealing with “service charges”, “usage charges”, “chiller charges” or “common area fees” will show how the parties have agreed to allocate costs between them, even though the owner remains primarily liable vis-à-vis the management entity under Article 16(b). Clear wording reduces the scope for disagreement if the landlord later seeks reimbursement from the tenant.
If something appears incorrect, the party receiving the demand should contact the building management and, where relevant, the landlord in writing. They can request a breakdown of the charge components, confirmation that the total matches the RERA-approved schedule and clarification of how any tenant contributions have been calculated under the lease. Many misunderstandings can be resolved at this stage when the parties see the official approval documents.
Where the issue is not the amount but the level of services provided – for example, persistent poor cleaning, inadequate security or delayed maintenance – unit owners can submit complaints about low service levels through the Real Estate Violations System available in the Dubai REST application. Enquiries on procedures can also be directed to DLD’s website or call centre. Tenants usually channel such complaints through their landlords or directly to building management, but the formal complaint to building management is typically made by the owner.
If a dispute persists over the amount or payment of common-area service and usage charges in jointly owned properties, the competent authority is the Rental Disputes Centre. DLD has confirmed that these cases fall under RDC’s jurisdiction rather than the general Dubai Courts. RDC provides e-services that allow owners, management entities and other parties to register first-instance lawsuits and appeals related to joint ownership issues via DLD’s website, service centres or the Dubai REST app. EGSH can assist clients in preparing the required documentation and coordinating submissions through these official channels.
Non-Payment Risks and Support Options for Owners
The DLD has publicly warned that non-payment and accumulation of service and usage charges can lead to serious enforcement measures. If arrears continue to build, the management entity may initiate procedures that may ultimately result in the sale of the real estate unit to settle outstanding service and usage charges, in accordance with the mechanisms provided in the jointly owned property framework and overseen by the relevant authorities.
To reduce the build-up of arrears and the number of Rental Disputes Centre service charge cases, RERA has introduced the “Tayseer” initiative under DLD. Tayseer offers flexible payment solutions, including a minimum six‑month payment plan, to help property owners settle currently outstanding service fees. This tool is aimed at owners who are willing to regularise their position but need structured instalments rather than facing immediate legal escalation.
In parallel, RDC’s automated services allow parties to file and pursue jointly owned property disputes electronically. Through RDC e-services, unit owners or management entities can submit cases, upload documents, and track progress without repeated in-person visits, which supports faster, more transparent resolution. Early engagement with these systems helps keep disagreements procedural rather than confrontational.
From a practical perspective, owners should treat service and usage charges as essential obligations tied to preserving their property’s value. When financial difficulties arise, contacting the management entity promptly, exploring options such as Tayseer, and seeking guidance from centres like EGSH before arrears escalate will usually yield better outcomes than waiting for enforcement action.
Key Takeaways on “Who Pays What”
Under Dubai Law No. 6 of 2019 and Dubai Land Department guidance, owners are primarily responsible for jointly owned property service charges and usage charges, including chiller costs for common areas, unless a lease expressly allocates some of these costs to the tenant. Even where the lease does so, the owner remains legally liable towards the management entity if the tenant does not pay, turning any non-payment into a contractual issue between landlord and tenant rather than with the building.
Valid jointly owned property service and usage charges in Dubai must be RERA-approved, visible on the Service Charge Index, and invoiced through the Mollak system to RERA-approved regulatory bank accounts. Unapproved or unexplained demands can be challenged using DLD’s digital tools, the Real Estate Violations System and, if necessary, the Rental Disputes Centre for formal disputes.
By keeping leases clear on cost allocation, relying on official systems, and seeking procedural support from service centres such as EGSH when needed, both landlords and tenants can more predictably and lawfully determine who pays service charges in Dubai.
FAQ
Who is legally responsible for building service charges in Dubai?
Service and usage charges for jointly owned real estate are, by default, the responsibility of the property owner. Unless the lease agreement clearly states otherwise, the tenant has no direct legal obligation to the management entity for these amounts. Even if the lease places some or all of the charges on the tenant, the owner remains liable to the management entity if they are not paid.
Can my landlord ask me to pay service charges in Dubai?
A landlord can contractually agree with a tenant that the tenant will pay or reimburse, in whole or in part, jointly owned property service charges and usage charges, provided this is clearly stated in the lease. Such a clause affects the financial relationship between landlord and tenant, but does not relieve the owner of their statutory duty to the management entity, which still looks to the owner for settlement if the tenant fails to pay. Tenants should therefore review any “service charge” or “building fee” wording carefully before signing.
Are tenants required to pay service and usage charges in Dubai?
Tenants are not automatically required to pay common-area service charges or usage charges in Dubai; their responsibilities depend entirely on the lease agreement. The legal default is that the owner pays these jointly owned property service charges, but many leases for apartments in jointly owned buildings state that the tenant will bear them either indirectly through rent or directly through reimbursement. Where the lease is silent, any attempt to bill the tenant directly for such charges can be challenged under the law.
How can I check approved service charges for my building in Dubai?
You can check approved common area service charges and usage charges for your building through the Service Charge Index on the Dubai Land Department website or via the Dubai REST application. These tools show RERA-approved service charges for each registered jointly owned property project, allowing you to compare them with any invoice you receive. If the amount demanded exceeds the approved figure, you can raise the issue with the management entity and, if necessary, with DLD.
How do I complain about high or poor-value service charges in Dubai?
If you believe service charges are too high relative to service quality, first confirm that the amount matches the RERA-approved figure in the Service Charge Index. If you are unhappy with the services actually provided – for example, weak cleaning or maintenance – you can submit a complaint through the Real Estate Violations System in the Dubai REST app, which is the official DLD channel for such issues. You may also contact DLD’s call centre for guidance on the correct procedure.
How are service charges calculated in jointly owned properties in Dubai?
For jointly owned properties, Law No. 6 of 2019 states that each owner’s share of service charges is calculated based on the ratio of their unit’s area to the total area of the jointly owned real estate, using a methodology approved by the Director General of DLD. RERA reviews the annual budget and charge levels for the project, and once approved, Mollak issues quarterly invoices to owners reflecting their proportional share. This system is intended to ensure that larger units contribute more than smaller units.
What happens if I do not pay service charges for my flat in Dubai?
Non-payment and accumulation of service and usage charges can trigger enforcement procedures by the management entity through the mechanisms provided under the jointly owned property framework and referred to DLD and the Rental Disputes Centre. If arrears remain unresolved, DLD has indicated that the unit can ultimately be sold to settle outstanding charges. Owners facing difficulty should therefore engage early with the management entity or initiatives like Tayseer to avoid escalation.
How to file a service charge dispute at the Rental Disputes Centre?
For disputes over common area service charges and usage charges in jointly owned properties – such as disagreement over the amount, allocation or non-payment – you can file a case with the Rental Disputes Centre, which has jurisdiction over these matters. Cases can be registered through RDC e-services available via DLD’s website, service centres or the Dubai REST application, where you upload the lease, invoices, proof of payment and any correspondence. EGSH can help you organise the required documents and submit the application correctly through the relevant channels.
Explained by
Muneer Juma Al Balushi
Real Estate Registration Trustee Consultant
Muneer Juma Al Balushi has six years of experience in the real estate registration system of the Dubai Land Department. He specialises in accurate, secure, and legally compliant property registration.
This article is intended to provide general information based on official UAE sources, and does not constitute personalised legal advice. Before acting, applicants should verify the current rules and fees directly with the relevant authority or an authorised service centre.
