Blog

Commercial Service Charges

Service charges in commercial buildings in Dubai are fees that building owners collect from tenants to cover the cost of maintaining and operating the building. The fees are typically based on the square footage of the leased space, and are used to pay for services such as cleaning, security, maintenance, electricity and water, and building insurance.

The administration of service charges in Dubai is regulated by the Dubai Real Estate Regulatory Agency (RERA), which sets guidelines for how service charges are calculated and collected. RERA also ensures that building owners are transparent about the services and costs that are covered by the service charges, and that tenants are informed about any changes in the fees.

In general, service charges in commercial buildings in Dubai include:

Cleaning and maintenance of common areas, such as lobbies, elevators, and restrooms.

Security services, including the staffing and operation of security personnel, as well as the cost of installing and maintaining security systems.

Utilities, such as electricity, water, and air conditioning, for common areas and building infrastructure.

Building insurance, which covers the cost of insuring the building against risks such as fire, theft, and damage.

Repairs and maintenance, including regular maintenance and repairs to the building’s structure and mechanical systems, as well as emergency repairs.

The cost of service charges can vary depending on the size of the building, the quality of the services provided, and the cost of operating and maintaining the building. Tenants can expect to pay anywhere from AED 20 to AED 100 per square foot of leased space, although this can be higher or lower depending on the building.

In conclusion, service charges in commercial buildings in Dubai are an important aspect of building ownership and management, as they ensure that buildings are maintained and operated in a safe and efficient manner. Building owners are required to be transparent about the services and costs that are covered by the service charges, and tenants are entitled to a clear understanding of the fees they are paying.