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Rental Dispute Lawyers in Dubai Explaining Service Charge Disputes

property law

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November 01, 2026

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A disputed service charge can affect the owner, the tenant and a planned property sale. The first question is whether the demand concerns approved charges for jointly owned property, a tenant's separate contractual obligation, or a billing mistake. Each issue calls for different evidence and may require a different remedy.

Rental dispute lawyers in Dubai can help identify the responsible party, check the approved charges and respond to enforcement. Dubai Law No. 6 of 2019 gives owners protections against unapproved collections and improper management, while requiring payment of charges approved by the Real Estate Regulatory Agency, known as RERA. A maintenance complaint does not itself suspend that duty.

Identify who owes the charge

Service charges fund the management, operation, maintenance and repair of jointly owned property. Usage charges relate to common facilities within the master project. These should be separated from individual electricity bills, rent and other expenses incurred specifically by an occupant.

Article 16 of Law No. 6 of 2019 places responsibility for service and usage charges on the owner unless the lease provides otherwise. Even where the lease requires the tenant to pay, the owner remains liable if the tenant fails to do so. Article 25 also requires developers to contribute for unsold units and units for which they have agreed to pay on the purchaser's behalf.

An investor should therefore monitor the account rather than assume that a tenant's promise ends the matter. For the tenant, the starting point is the wording of the lease and any signed addendum. A clause addressing utilities should not automatically be treated as an agreement to pay every building management charge.

Dubai’s Government Media Office reported on 4 April 2021 that service charges audited through Mollak had reached AED 3.41 billion. This historical figure illustrates the scale of the audit system at that date; it is not a 2026 annual total or evidence of the approved rate or outstanding balance for a particular building.

Compare the invoice with the approved budget

Article 27 prevents a management entity from charging or collecting amounts within its scope without RERA approval. A service charge or usage charge budget requires approval by a certified audit firm recognised by RERA before RERA approves or ratifies it. Where necessary, RERA may approve a temporary service charge budget under the applicable rules, so an owner should establish whether a valid temporary approval exists before rejecting an invoice.

Dubai Land Department's Service Charge Index provides approved information by project, use and year. Compare the relevant entry with the invoice, keeping a copy of the result. Using another building's rate or a previous year's budget may produce a misleading comparison.

Ask for a statement showing the opening balance, current charges, adjustments and payments received. Match receipts against individual entries. Check the recorded unit area and the period charged. A correct budget rate can still produce an incorrect balance if the account duplicates an invoice or omits a payment.

Mollak supports the regulation and monitoring of jointly owned property charges. DLD guidance directs owners to approved payment accounts and channels. Verify any changed payment instructions with the management company through an established contact before transferring funds. Keep the invoice and payment confirmation together.

Document maintenance failures separately

Broken lifts, recurring leaks or unclean common areas deserve a specific complaint supported by dates, photographs and earlier reports. Identify the affected location and explain what repair or response is requested. Preserve original correspondence and avoid allegations of dishonesty unless evidence supports them.

Article 28 prevents owners from withholding approved service or usage charges. It also prevents an owner from avoiding payment by abandoning an interest in the common parts. Disuse of a pool or gym therefore does not establish a right to deduct an amount from the approved bill.

RERA can inspect property, examine revenue and expenditure, review management contracts and consider complaints under Article 33. Article 35 also provides a process for requiring necessary repair or maintenance work. A complaint about service quality and a challenge to the amount payable should explain the separate basis of each request.

Choose the appropriate complaint or case

DLD's published complaints procedure calls for a written complaint to the management company first. If the response is absent or inadequate, the owner can escalate through the relevant Dubai REST process, attaching the original complaint, any response and supporting evidence. Confirm current submission requirements when filing.

Regulatory review is relevant to approval, management and maintenance issues. A request for an enforceable determination of disputed financial rights requires consideration of the judicial route. Article 42 gives the Rental Disputes Settlement Centre, commonly called the RDC, exclusive jurisdiction over disputes concerning rights and obligations under Law No. 6 of 2019 and its implementing resolutions.

The proposed claim should identify the correct parties and the precise relief sought. For example, an owner disputing duplicated charges needs a corrected account, while a tenant seeking reimbursement must establish the landlord's contractual responsibility. Submitting a regulatory complaint should not be assumed to stop an existing enforcement case or its deadlines.

Respond promptly to a service charge notice

Article 32 requires the management entity to demand payment through a written notice approved by RERA, giving the owner 30 days from service. If payment remains outstanding after that period, the financial claim is enforceable before the RDC execution judge under the applicable procedures. The RDC's current guidance refers to notification through Mollak for 30 days before execution is filed.

The law gives the management entity a lien over the unit for unpaid service charges and restricts disposal until those charges are paid. Where necessary, the execution judge may order sale by public auction. Such a sale requires the judicial process; it is not a step that a management company can take simply by sending an ordinary invoice.

Check the notice date, claimed period, approval and payment history immediately. If execution has begun, obtain the file and the orders already issued. Any objection, request concerning payment or application for a stay must be assessed under the relevant procedure rather than assumed to follow automatically from a complaint letter.

Deal with blocked access or disconnected services

Collection powers do not authorise arbitrary pressure on occupants. Article 29 prohibits a developer or management entity from preventing an owner from possessing or using the unit or common facilities to compel payment contrary to the statutory procedures.

Tenants also have protections under Article 34 of Dubai's tenancy law against a landlord disconnecting services or interfering with their use of the property. The provision allows recourse to the relevant police station and a claim supported by official reports for resulting damage. The appropriate urgent remedy depends on who caused the interruption and the circumstances. Record the event and obtain advice promptly rather than treating the disruption as a reason to stop paying rent.

Preparing for Rental Dispute Lawyers in Dubai

Bring the title deed, lease and addenda, invoices, account statement, approved budget information, receipts and notices. Include documents showing the management entity's identity and a short chronology of correspondence. If a sale is pending, provide the sale agreement and completion timetable so that the service charge issue can be addressed alongside the transaction.

A focused review should establish what is genuinely disputed, what remains payable and whether urgent action is needed. A negotiated resolution should record the corrected balance, allocation of payments and any steps required in an existing case. Clear settlement terms reduce the risk of the same arrears reappearing in a later statement.

Frequently Asked Questions

1. Can a tenant be required to pay service charges

Yes, the lease can allocate payment to the tenant. Article 16 nevertheless preserves the owner's liability if the tenant fails to pay. The contractual allocation and the approved amount must both be checked.

2. Does a maintenance complaint suspend approved charges

No. Article 28 requires payment of approved charges. Preserve evidence of poor maintenance and pursue the appropriate complaint or claim without assuming that it authorises withholding payment.

3. Can disputed arrears delay a property sale

Yes. Article 32 creates a lien and restricts disposal while service charges remain unpaid. Obtain an accurate statement early and address any disputed entries before the planned completion date.

4. Can a correct approved rate still produce an incorrect invoice?

Yes. Check the unit area, charging period, opening balance, adjustments and recorded payments. A duplicate charge or omitted receipt can create an incorrect balance even where the approved budget rate is correct.

5. Does a complaint about maintenance stop enforcement?

Do not assume that it does. Explain the maintenance issue and any challenge to the amount payable separately. If execution has started, obtain the file and seek advice on the appropriate objection or protective application and its deadlines.

About the author

Dr. Hassan Elhais is a Senior Legal Consultant at Amal Al Rashedi Lawyers and Legal Consultants in Dubai. He advises on UAE family, civil, commercial and criminal law matters.

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