Understanding Service Charges of Property Management Companies in UAE28 May 2018
Just like any other processes in different industries, property management companies in UAE follow steps and procedures in handling properties left in their care. While landlords sit back and relax and wait for their income from their real estate investments, property managers do all the work to have their buildings generate the best income from quality tenants.
However, following procedures doesn’t necessarily mean you won’t have any problems. Property managers do encounter a lot of troubles in property management, especially in dealing with tenants. And one of the most argument-inducing topic is the “service charges”.
What, actually, are service charges and why does it cause problems with tenants?
Service Charges in Property Management
Having services charges as a part of property management fees is for the purpose of recovering the landlord’s cost of running a scheme, fairly distributing the costs to all tenants in the property. However, services charges rarely stay the same and tenants don’t pay the same.
A fair service charge is usually achieved by devising a weighting system that shows how tenants benefit from the buildings’ services and amenities. All the costs are split according the the allocation of services that tenants receive.
Excellent Dubai property management and proper service charges are crucial in the success of rental buildings. These provide benefits to both the owners and tenants.
- It ensures the property owner of improved leasing ability of his building.
- It enhances the overall investment values
- It provides tenants with a better living or working environment complete with quality services and amenities.
It is important for a property owner and client to check the property management company and their procedures, as well as the service charges in order to prevent certain problems. These include:
- Identifying discrepancies and potential problems.
- Avoid price chipping at contract stage.
Property management companies in Dubai have to let owners and tenants understand that service charges are driven by human costs, and that tenants get the most from what they are paying. Because this is where arguments usually start, when tenants don’t understand what service charges are all about.
And the key to having a peaceful yet fruitful relationship between tenants and owners is hiring the best property management company, Zawaya Property.
Zawaya Property is sure to optimise your properties to the best that they can be. Check out Zawaya Property’s work now and visit their website.