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Service Charges

The Service Charge is the annual amount payable by every owner towards the expenditure for the security, safety, maintenance and upkeep of the Building and / or Community. This charge is based on the Community’s estimated annual expenditure for its operation, repairs and maintenance, taking into account many factors described in more detail below, and is proportionate to each owner’s ‘share’ of the Building and / or Community commonly called “unit entitlement”.

GENERAL EXPENSES FUND
The fund for general expenses covers the Building’s and / or Community’s day-to-day operational and administrative costs used to maintain the common property. These include, but are not limited to, the common area maintenance, utilities, and management of: general and specialized cleaning; pest control; lighting; waste collection; water supply infrastructure; mechanical, electrical and plumbing (MEP) assets; landscaping and its irrigation; water features and swimming pools; civil works; regular upgrades and replacement of non-capital assets; Community signage; access control and security staff; safety / fire-fighting equipment; statutory requirements / certifications; insurance; legal fees and bank charges.
CAPITAL RESERVE FUND
The Capital Reserve Fund covers the planned costs for major repair or replacement of items deemed ‘capital assets’, such as land, plant or machinery. This contribution is calculated by RERA-registered professional bodies and is based on the replacement value of assets across their lifespan, allowing for easy replacement at the end of their useful life. This fund must be maintained with a certain balance to ensure these large planned costs can be met. The purpose of this fund is to ensure the smooth-running of the Building and / or Community and its major assets as well as the maintenance / appreciation of the Community’s value in future years.
MASTER COMMUNITY SERVICE CHARGES
A Master Community Charge payment is required by each of the residential and non-residential entities in a Master Community – for example: schools, clubs and retail areas, as well as residential property owners. It covers the costs for the maintenance and upkeep of the Master Community infrastructure such as roads, bridges, footpaths, underground services, sewage treatment, street lights, landscaping etc.

The master community Service Charges consist also in General Fund and Reserve Fund and chargeable based on unit entitlements and rates depend on the type of property.

A Villa owner, receives a direct invoice for the master community while an apartment owner, receives the invoice through the appointed Association management company as part of the building service charge.

SPECIAL SERVICE CHARGES
These are ad hoc costs that occasionally occur, not covered by the General Expenses Fund or the Capital Reserve Fund. A special levy will cover unexpected or emergency costs. For example, an upgrade of infrastructure to ensure compliance with changes in authorities’ guidelines or the improvement of common area facilities that enhance the lifestyle in the building and / or Community. However, the unit owners are invoiced on their statement of accounts only post authorities approval.
CALCULATING THE SERVICE CHARGE
Our team is involved in budgeting for the year ahead by taking into account various factors, including, but not limited to:

• Experience of the previous year’s costs and the end of year balance

• The lifespan of major capital assets and maintenance / replacement schedules

• Ongoing contracts (service agreements) in place with service providers

• Income from Community Violations, late payment charges etc

 

THE IMPORTANCE OF PAYING YOUR SERVICE CHARGE
It is vital to the smooth operation of the Community for residents to pay their Service Charge in full and on time. Thus, we can take a number of measures to address the issue of non-payment including:

• A ‘late payment charge’

• Refusal to issue certain documentation in the transfer of property, move requests and denial of access community facilities and so on

• Suspension of non-essential services

Your Service Charge allows us to maintain and enhance your Community so you can enjoy a valuable home for many years to come.