Dubai's RERA in new move to help property owners pay off service charges

Dubai: Property investors in Dubai who have fallen back on their service fee payments are getting a chance to pay off in instalments.

They can choose to pay off using flexible payment plans - over a minimum of six months - in coordination with property management companies.

During this period, no action can be taken by OA companies against property owners who have racked up sizable dues over the years..

The move is ‘expected to ease financial burdens’ on owners and also ‘contribute to greater financial stability within the real estate sector’.

The initiative comes under RERA’s (Real Estate Regulatory Agency), ‘Tayseer’ initiative to ease payments of all currently outstanding service fees owed by freehold owners in Dubai.

In recent years, with service fees increasing, the number of property owners who have defaulted on these payments has been pushing higher. Dubai authorities have enacted strict laws on these owners, putting restrictions on their ability to sell off these units without clearing these dues.

The new RERA move, Tayseer, thus allows property owners who have fallen back on such payments to get back into the space.

So far, 19 owner association (OA) companies have joined in, ‘reflecting the real estate sector’s commitment to supporting property owners and enhancing financial stability and sustainability within jointly owned communities’. (Homeowner committees at each development appoint OA companies to oversee the property management and collection of service charges.)

For freehold communities, the need for OAs to collect all their service charge dues has become even more vital after April 2024's unprecedented rains and leading to extensive property damages.

“Dubai Land Department continues to launch impactful initiatives that keep pace with market developments and address the needs of property owners and investors," said Mohammed Ali Al Bidwawi, acting CEO of the Real Estate Regulatory Agency at the Dubai Land Department.

Tayseer initiative was launched following a meeting RERA held with OA management companies, where they discussed ways for 'settling current overdue service fees by property owners'.

It was agreed to open registration for the initiative for two months through the OA companies, with a 'commitment from these companies not to initiate enforcement actions against unit owners while implementing the payment plan'.