RERA stance on service charges to be tested under new strata regulations

With the imminent release of implementation regulations to be read in conjunction with the Strata Law of 2007, a clear and concise public awareness campaign in relation to the service charge regulations is essential in order that residents and property owners fully understand the processes and benchmarking introduced by RERA.

The RERA-set regulations for the Dubai Rental Index should not be confused with the service charge approval process (Strata law), said Kent O'Brien, Managing Director of Strata Global, and an industry expert in Strata Management.

O'Brien added:

"If owners wish to spend more on their building than an adjoining building offering similar features it will only take a majority of owners voting at a general assembly to bring that agenda into effect. Hence, approval of service charges will be entirely the responsibility of the Owners Associations (OA) and RERA will not become involved unless the correct approval process has not been followed."

"It is suggested that some developers, property managers and FM service providers in the Dubai market in particular may not fully understand their future role as a manager under the new regulations. Things will change rapidly when Owners take over the running of their buildings; clear lines of management between private property and common property will emerge," O'Brien added.

Dubai-based, Strata Global said today that with the release of the Dubai Strata regulations, everyone in the service industry wishing to provide services to developers and owners associations will need to be on their game.

A complete services package will be required to be able to accommodate the regulatory needs of Owners Associations seeking value from service charge payments.

Hot on the heals of major recent appointments in Oman and India, Strata Global has established a unique business base to satisfy the demands of a difficult and emerging UAE strata environment.

"We will be able to train managers in Dubai, Oman and India and have a ready pool of expertise within several regions providing employment opportunities in several countries," said O'Brien.

Strata Global strongly believes in the need to be innovative, especially in times of financial turmoil and we have looked globally for systems that could be brought to Dubai to help contain costs and promote efficiencies.

Strata Global has developed a package which maximises efficiency in buildings. Recent negotiations are paving the way for Strata Global to be the leading strata management service provider to the region.

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