Insights · AXD Real Estate Dubai
Dubai Service Charge Increase — Who Decides, Who Approves | DACH Owners
AXD Insights · Property Management & Governance · May 2026
Dubai Service Charge Increase — Who Decides and How to Intervene
A service charge increase in a Dubai joint-ownership community is subject to RERA approval under Dubai Law 6/2019 — it cannot be set freely by the management company. The structural safeguard runs in four stages: proposal by the management company, input from the Owner Association, prior approval by RERA, billing via the Mollak portal. For DACH owners, the Owner Association vote via Power of Attorney and the direct Mollak complaint are the most effective levers for intervention.
The Approval Workflow at a Glance
| Stage | Actor | Function |
|---|---|---|
| 1 | Management company | Budget proposal, item by item |
| 2 | Owner Association | Input, preliminary statement |
| 3 | RERA | Plausibility review against prior year and market |
| 4 | Mollak portal | Operationalization of billing |
| 5 | Owner complaint | Mollak dispute module, RERA arbitration body |
What RERA Requires in the Plausibility Review
Prior-year comparison: item-by-item juxtaposition — electricity, cooling, security, cleaning, maintenance, management fee.
Market benchmark: comparison with RERA-collected service charge levels of similar communities.
Proof of actual services: evidence for reported services, contracts with service providers, maintenance logs.
Sinking fund plausibility: reserves for larger refurbishments must flow into dedicated trust accounts.
Owner Association preliminary statement: documented OA meeting with attendance and voting record.
Where DACH Owners Can Intervene Effectively
Before the OA meeting: review the budget item by item via Mollak portal access; flag conspicuous increases.
At the OA meeting: voting right via Power of Attorney, also as a non-resident.
At RERA approval: complaint in the Mollak portal with reasoning — RERA requests an audit; if confirmed, the budget is reduced.
For disputed amounts: use the Mollak dispute module — amounts can be held in trust until clarification.
Escalation: RERA arbitration body or ordinary Dubai courts; in practice rarely used, because the OA majority and RERA audit usually take effect.
Realistic Increase Corridors
A numerical cap as with rent increases under the Smart Rental Index does not exist for service charges. RERA-approved increases in premium communities are typically 8 to 15 percent per year when objective cost drivers are documented — electricity, district cooling, security personnel, insurance premiums. Increases beyond 20 percent are subject to intensified RERA review with extended documentation requirements.
Special Cases
First-time management after handover: in the first 12 to 18 months the data situation is thin; RERA reviews more conservatively, and the OA still has little negotiating power.
Change of management company: an OA resolution can replace the management company, though only with a qualified majority and RERA confirmation.
Sinking fund special payment: one-off special payments for larger refurbishments require a separate RERA application with a refurbishment plan and cost estimate.
Freehold villas without JOPL: Mollak does not apply — there, private contractual agreements with the community provider take effect.
Sources
Dubai Law No. (6) of 2019 — Ownership of Jointly Owned Real Property
RERA — Service Charge Budget Approval Practice Notes
Dubai Land Department — Mollak Implementation Guidelines
RERA — Owner Association Manual and Voting Procedures
Note: Service charge audits are time-consuming; in disputed cases, engage a local joint-ownership lawyer and issue the Power of Attorney in good time.
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