Dubai: January 1, 2011, was publicised as the date when housing fee discrepancies would cease to exist as all Dubai residents would be uniformly charged a municipal levy.
However, going by what a cross section of residents told Property, the charge has not yet been implemented throughout the emirate.
Residents, however, do not seem to be alarmed at being off the Dubai Municipality's housing fee radar and are basking in the glory of non-compliance.
A call made by Property to Dubai Electricity and Water Authority's (Dewa) customer centre got this response: "Consider yourself lucky if [you] haven't been charged housing fees as of yet. It is under process in some areas."
The procedure
The housing fee is calculated by Dubai Municipality and collected via Dewa utility bills. For an expat homeowner, this fee is five per cent of the property's annual rent.
If you have been dodging housing fees so far, authorities insist the first step towards compliance is to fill in a housing fee registration form which can be found on the Dubai Municipality portal (www.dm.gov.ae).
This includes registering details of your accommodation with the civic body. The next stop is the housing fee counter at Dewa's head office near Wafi City mall. Ensure that you take along your tenancy contract as well as the last utility bill received.
Overcharged housing fees
Meanwhile, there have been several complaints from tenants that they have been overcharged housing fees, calculated on their previous tenancy contract.
Markos Abraham, who rents a property in Al Qusais, says, "Even after renewing my lease for a reduced rent, my Dewa bill reflected a housing fee calculated on my earlier rent contract."
Markos approached Dubai Municipality and updated his tenancy contract in their records. "I was given a letter to be submitted at Dewa headquarters. It has been promised that whatever was overcharged will be adjusted in the next utility bill." He adds it was inconvenient to take a day off from work to complete these formalities.
With the Real Estate Regulatory Agency (Rera) stipulating that all lease contracts must now be registered via the Ejari online portal, landlords too have their work cut out.
Michael Michael, director of sales and leasing, Landmark Property Management says, "Most landlords are very aware of Ejari as it's been widely campaigned [about] in the media. It's in their best interests to register their property as it provides extended security when there's a dispute between landlord and tenant."
With Dewa trying to play catch up, housing fee defaulters cannot remain elusive for long. If they fail to toe the line despite repeated notices from Dewa, the housing fee will be calculated based on the average rental index applicable to the area.
Homeowner view
- Tenants are expected to pay five per cent of their annual rent as housing fees
- This is calculated by Dubai Municipality and enforced via Dewa
