Delivery of services in the upmarket Jumeirah Beach Residence (JBR) master community may face disruption if apartment owners refuse to pay service charge arrears, 'Emirates24|7' can reveal.
In order to recover the “significant” arrears, Dubai Properties Group (DPG), through its community manager’s has put up notices across the buildings in the master community, calling “defaulters” to clear their dues for the “safety and security” of their community.
A company spokesperson, in an emailed statement sent to this website, confirmed there are “significant” arrears that can affect the delivery of services in the community. No details on services that could be affected were stated.
“We are working closely with Taziz Property Management Solutions - the appointed community manager - to recover service charges as approved by Rera and in accordance with the law.”
The notices, however, states only the apartment number and not the owner name, but urges defaulters to pay their outstanding charges.
“Kindly pay your outstanding service charges. Your community needs your contribution for the safety, security and comfort of all residents,” the notice reads.
The service charge, approved by Real Estate Regulatory Agency (Rera), for 2011 has been set at Dh15.32 per square feet.
Asked what action was DPG planning against defaulters, the spokesperson said: “We have carried out a series of reminders this year and last year. However, there are still significant arrears and we need to collect service charges to maintain the community facilities and common areas – this is vital to maintain the quality of life for residents and also the long-term value of both the master community and the individual units.”
She informed that Taziz has been in contact with owners to remind them of their obligations to pay service charges, as outlined in the sales and purchase agreements, and followed the process to collect service charges through the use of official notices.
“We will continue to follow a step by step process in order to recover overdue service fees, and have communicated this process to those in arrears,” she stated.
SK, owner of three-bed unit in Al Bahar 1, told Emirates 24/7: “Its nothing but an arm-twisting tactic by putting the notice in the lobby. I am not against paying the fees, but they need to reasonable and justified. Here, it is too steep and the service isn’t that good for the amount they seek.”
Moin S, who owns a two-bedroom apartment in the same building, believes the owners’ voices grievances can be solved only if there is a legitimate homeowners association.
“I have already put aside the service charge for this year in my bank account, but I haven’t paid it. I want the HOA to be formed and the budgets to properly audited.”
He argues since the budget has not been audited, a condition set forth by Rera, the owners have the legal right to pay a service charge based on the original SPA rate (Dh9.5 square feet).
Venting his anger on JBR community website, a resident, wrote: “We owners are awaiting for the developer to register home owners association (HOA), allow elected HOA to vote the budget, allow elected HOA to review last five years audited accounts and facility manager meet and review with elected boards long standing issues.”
Of late, a number of developers have recently adopted the “name and shame” approach to get the defaulters to pay their service charges. In May, Emaar Properties put up notices in its Springs community in order to get the owners to pay their dues, while Nakheel too had put up notices in late last year and later barring defaulters from using common facilities in the Palm Shoreline Apartments.
JBR is among the prime freehold localities in Dubai. It faces 1.7 kilometres of beach that features luxury hotels, retail outlets and restaurants and houses 36 residential towers.