DUBAI PROPERTY OWNER GUIDE
Who Pays Service Charges on a Dubai Holiday Home?
Service charges belong in your property budget whichever rental model you choose.
The registered owner remains responsible for service charges. Operating a unit as a holiday home does not, by itself, transfer the ownership obligation to a management company.
What the official guidance says
Dubai Land Department’s explanation of service and usage charges refers to Law No. (6) of 2019 and the owner’s responsibility. A contractual payment arrangement does not necessarily discharge that liability when another party fails to pay.
Payment administration is a separate arrangement
A management agreement may arrange payment on the owner’s behalf or deductions from rental receipts. Ask who receives the invoice, when it is settled and how it appears on the statement. Keep the relevant approved budget and account records.
Use the actual approved budget
Do not assume the service-charge amount stays unchanged forever. Use your building’s current approved charges and account for any known adjustments when preparing a projection. Switching rental models does not make this cost disappear.
Compare net income consistently
Use the same treatment of service charges on both sides of an annual-lease and holiday-home comparison. Add the costs specific to each model rather than comparing gross holiday-home revenue with net annual rent.
Continue with utility costs, the Tourism Dirham and AUREN’s management fees.
Reviewed 23 September 2026. General guidance; confirm current requirements and your property’s contractual position before acting.
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