What's in this guide
Service charges are the largest recurring cost of owning in Dubai, and the one owners feel least able to influence.
In fact, Law No. 6 of 2019 gives you specific rights — to information, to scrutiny, and to escalation. Most owners never use them because nobody tells them they exist.
1. How the number is actually set
Understanding the process tells you where the leverage is.
- The Owners’ Association (or the management company acting for it) prepares an annual budget.
- It is submitted to RERA through the Mollak system, with the previous year’s audited actual spend.
- RERA reviews and approves a rate in dirhams per square foot.
- Owners are invoiced, and funds route into regulated accounts.
Two consequences worth holding on to:
- A charge that has not been approved through Mollak is not properly levied. You are entitled to ask whether the building is registered and the budget approved.
- The budget is compared against actual spend. Persistent over-budgeting is visible to RERA, which is why the audit matters.
2. What you are entitled to see
As an owner, you can reasonably request:
- The approved budget, broken down by line item — not a single total
- The previous year’s audited accounts
- The reserve (sinking) fund balance and what it is earmarked for
- Confirmation the building is registered on Mollak
- Notice of general assembly meetings, where the budget is discussed
Ask in writing. A polite, specific email requesting the line-item budget and audited accounts is far more effective than a phone complaint — and it creates the record you will need if you escalate.
3. How to judge whether the increase is fair
Before challenging anything, do three checks:
- Compare to the DLD Service Charge Index. Your building’s approved rate is published. If the invoice exceeds the approved rate, that alone is a question.
- Benchmark against similar buildings. Comparable age, height and amenities in the same area. A rate materially above peers needs a reason.
- Look at what changed. Legitimate causes exist — insurance repricing, a chiller replacement, a genuinely underfunded reserve catching up, new statutory requirements.
Sometimes the increase is justified and the building was simply underpriced before. That is worth knowing too — because a building that under-collects for years is storing up a special levy. See our service charges guide.
Send Ali the building and the notice. He will compare it against the approved index rate and comparable buildings, and tell you whether it is defensible or worth challenging.
4. Special levies, and why they happen
A special levy is a one-off charge for major works — facade, lifts, plant replacement — when the reserve fund cannot cover it.
They are legitimate. They are also a symptom: a properly funded reserve should absorb predictable long-cycle works without a surprise assessment.
If one lands:
- Ask for the scope of works and the quotes obtained — plural
- Ask why the reserve was insufficient
- Ask whether payment can be staged — often it can
Before buying into an older building, ask about the reserve fund balance. It is one of the highest-value questions in Dubai property and almost nobody asks it.
5. How to escalate properly
- Write to the Owners’ Association / management company. Specific, documented, requesting the budget and accounts. Give a reasonable deadline.
- Raise it at the general assembly. Owners collectively have standing that an individual email does not. If several owners share the concern, coordinate.
- Complain to RERA. RERA regulates Owners’ Associations and Mollak. Bring documents: the invoice, the approved rate, your correspondence, and the comparison.
One thing not to do: stop paying. Arrears attract penalties and block DLD transactions on your unit — meaning you cannot sell or refinance. You would be damaging your own position while the dispute is unresolved.
Pay under protest if you must, in writing, and escalate in parallel.
6. Frequently asked questions
Can I dispute service charges in Dubai?
Yes. Start by requesting the line-item approved budget and audited accounts from the Owners’ Association in writing, compare against the DLD Service Charge Index and similar buildings, then escalate to RERA with documentation if unresolved.
What is a special levy and do I have to pay it?
A one-off charge for major works when the reserve fund is insufficient. They are legitimate, but you can request the scope, the quotes obtained, an explanation of the reserve shortfall, and staged payment.
What happens if I refuse to pay service charges in Dubai?
Late fees and formal notices, followed by restriction on DLD transactions for your unit — meaning you cannot sell or refinance until arrears are cleared. Pay under protest in writing and escalate separately.
What documents can I request from my Owners’ Association?
The approved budget broken down by line item, the previous year’s audited accounts, the reserve fund balance and its earmarked purpose, and confirmation the building is registered on Mollak.
How do I know if my service charge is too high?
Compare it to the RERA-approved rate on the DLD Service Charge Index and to buildings of comparable age, height and amenities in the same area. A rate materially above peers requires justification.
What should I ask about the reserve fund before buying?
Its current balance and what major works are anticipated. A building with an underfunded reserve and ageing plant is one special levy away from costing you a year of rental income.
Facing a charge that does not look right?
Send Ali the invoice and the building. He will check it against the approved rate and comparable buildings, and tell you whether you have a case worth pursuing.
Sources & verification. Rights and process per Law No. 6 of 2019 on Jointly Owned Real Property, administered by RERA through Mollak; rates published via the Dubai Land Department Service Charge Index. General information, not legal advice. Figures reflect the position as at 24 August 2026 and can change — always confirm current rules with the relevant authority before you commit.