The vibrancy and elegance of Dubai attracts people from across the globe to work and live in the city. Everyone has a dream to own or rent a luxury villa, apartment, or townhouse. Irrespective of the type of property you own or rent, it is essential to understand the responsibilities and obligations related to in-unit maintenance costs. There has been a lot of confusion surrounding who must bear the cost of in-unit maintenance. Many owners and tenants believe that it is the responsibility of the management companies to pay for all the costs involved in-unit maintenance in a Jointly Owned Property. Dubai Law 6 of 2019 also known as the ‘Jointly Owned Property Law,’
Law 6 of 2019 clearly outlines the rules and regulations governing Jointly Owned Property management, including the allocation of maintenance expenses within the community. It focuses on jointly owned properties, which include residential buildings, commercial buildings, villa communities and mixed use properties. Under this law, all jointly owned properties must have an Owners’ Association Management Company responsible for managing and maintaining the common areas, facilities, and shared services within the property.
The Owners’ Association, represented by the management company, is responsible for maintaining the common areas, facilities, and shared services within the property. This includes – the upkeep of all common area assets such as – elevators, parking areas, swimming pools, gyms, and security systems.
Some of the key responsibilities of the Management companies in case of maintenance are as follows –
1. Structural Repairs: Any structural repairs or maintenance needed for the entire building, within 10 years from the date of issuance of the Building Completion Certificate is the responsibility of the developer. After 10 years, the responsibility is of the Owners’ Association and the management company.
2. Contingency Fund: The law requires each Owners’ Association to establish a contingency fund for unforeseen maintenance and repairs. This fund is funded by all property owners, through service charges and fees.
- As per the Article 25 of the Law 6 of 2019, an Owner will pay to the Management Entity his share of the annual Service Charges to cover the Common Parts management, operation, maintenance, and repair expenses. This share will be calculated, using the relevant method approved by the Director General, based on ratio of the area of the Owner’s Unit to the total area of the Jointly Owned Real Property.
- The Owner’s share of the Service Charges will be calculated based on the area of his Unit as recorded in the Real Property Register.
Law 6 of 2019 addresses the management and maintenance of jointly owned properties, encompassing residential and commercial buildings, villa communities, and mixed-use properties. It mandates the establishment of an Owners’ Association Management Company to oversee common areas, facilities, and shared services in such properties. The Owners’ Association, represented by the management company, bears the responsibility for preserving common assets like elevators, parking areas, swimming pools, gyms, and security systems. Some key maintenance responsibilities include:
In case of structural repairs, for the first ten years following the issuance of the Building Completion Certificate, the developer is accountable for structural repairs. After this period, the Owners’ Association and management company assume responsibility. Each Owners’ Association must create a contingency fund funded by property owners through service charges and fees to address unforeseen maintenance and repair needs.
Owners, in compliance with Article 25 of Law 6 of 2019, are required to pay their share of annual service charges for the management, operation, maintenance, and repair of common parts. The calculation of this share depends on the area of the owner’s unit relative to the total area of the jointly owned real property, as recorded in the Real Property Register.