Service charges are always a contentious issue and in these tough times it is a cost that hurts even more.
Most of the Service charges we deal with are for Nakheel Asset Management with Tiara being a recent addition.
Nakheel have been particularly laid back at collecting the service charges which i presume is due to the fact that many residents have firstly challenged the amount charged and then knocked the service provided. It is no surprise to me that the services provided are sub standard on the Shorelines when you consider the delinquincy rate of collections. I would guess that over 30% of residents are in the very late payer category and some are owing in excess of 100,000 dirhams. I also think that some of these late payers are the more vociferous ones when attacking the quality of services.
Service charges need paying or quite simply the investment will fall into disrepair and impact on sales values.
We have been told this week that Nakheel will start charging a late payment fee which will go down like a lead balloon but I think necessary.
As a guide here are some latest Service charges for you to compare:
Nakheel Shoreline
Service Charge 14 dhs /sq.ft
Community charge 5.10 dhs/sq.ft
Club house 2.6 dhs / sq.ft
Tiara
Service charge 19 dhs/ sq ft
Community charge 6 dhs/sq/ft
Marina Residence
Service charge total 19 dhs / sq.ft
We can challenge these all we like but service charges are a cost that has to be paid and if we want a decent environment to live where you can charge decent rental rates the charge is unavoidable.
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