How service-charge rates are set and approved
Management companies prepare a budget, RERA reviews it, and the rate per sqft is published in Mollak. Owners can challenge it.
Service-charge rates in Dubai aren't set by individual landlords — they go through a regulated process under Law No. 6 of 2019 (Joint Ownership of Property law) and oversight by RERA's Mollak system.
How it works
- The appointed Owners Association management company (or developer-appointed manager) prepares an annual budget.
- The budget goes to RERA for review and approval.
- Once approved, the per-sqft rate is published on the Mollak portal — owners can verify it there.
- Invoices are issued (annually or quarterly) through Mollak.
What gets scrutinised
- Year-on-year cost movement.
- Reserve-fund contribution (must be reasonable).
- Management-company fees (capped to avoid rent-seeking).
- Insurance premiums.
- Major one-off works (must be itemised, not buried).
Why your rate can change
- Inflation in security, cleaning, utilities.
- End of a developer subsidy period (common 1–3 years post-handover).
- Major works — paint cycles, lift refurbishments — pulling from the reserve fund or topping it up.
- Insurance market shifts.
If the rate jumps unexpectedly, look at the audited accounts — published in Mollak. The number rarely surprises if you read the budget.
Sources: Dubai Law No. 6 of 2019, Mollak.
Related questions
What service charges actually pay for
Common-area maintenance, security, building reserves, master-community upkeep — typically AED 10–25 per sqft per year.
Disputing your service charge
Pay first to keep your account current, then escalate via the management company → RERA → judicial committee if needed.
Owners Associations and Committees — who runs your community
Under JOPA Law (2019), buildings are managed by a Management Company. Owners can elect a Committee that represents the residents.