In the past, some developers have actually blocked tenants from accessing facilities within the building or community because of landlords who were or are in arrears against the service charges. Getty Images
In the past, some developers have actually blocked tenants from accessing facilities within the building or community because of landlords who were or are in arrears against the service charges. Getty Images
In the past, some developers have actually blocked tenants from accessing facilities within the building or community because of landlords who were or are in arrears against the service charges. Getty Images
In the past, some developers have actually blocked tenants from accessing facilities within the building or community because of landlords who were or are in arrears against the service charges. Getty

Homefront: ‘How can I check if a property has service charge arrears?’


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I have viewed a few apartments to rent. Is the tenant responsible for paying for any maintenance issues in a property they rent? Or is this the landlord’s responsibility?

An agent mentioned that for any maintenance issues costing up to Dh500, the tenant has to foot the bill, while the landlord is responsible for anything beyond that amount. Does this depend on which community you rent in? For instance, in the current community where I live, I do not have to pay for maintenance issues in the property.

Also, is it important that a tenant check if there are any service charge arrears on the property they intend to rent? Where can I find this information? And why is this important? Will a tenant be unable to access common areas, such as a gym or pool, if the landlord has not paid service charges in full? MU, Dubai

The subject of maintenance is very emotive and often the reason for breakdowns in landlord/tenant relationships when things go wrong. Most tenancy contracts today have provisions for who is responsible for what level of maintenance within a given property.

The norm is that any maintenance amount less than Dh500 is the responsibility of the tenant and more than Dh500 is the landlord’s responsibility. The actual location or community of the property does not determine this provision.

If you do not currently pay any maintenance towards your rented property, I must say you are very fortunate as this is not the norm. The tenant, too, has responsibilities towards the upkeep of the property.

With reference to the owner’s status of service charge payments, this is indeed an important point. In the past, some developers have blocked tenants from accessing facilities within the building or community because of landlords who were, or are, in arrears against the service charges.

Thankfully, this has now proved to be illegal but often developers have had few other options available (other than lengthy legal cases) to get the rogue landlords, who are often either abroad or absent, to pay up. Applying this kind of pressure on the tenants has proved to be an easy way to get paid.

A tenant cannot force a landlord to pay off any outstanding service charge debts owed, especially once they are already residing in the property

A prospective tenant can always ask their agent to look into the status of the owner’s service charge payments. Alternatively, the tenant can make inquiries directly with the management company.

Obviously, a tenant cannot force a landlord to pay off any outstanding service charge debts owed, especially once they are already residing in the property. But at the beginning of a tenancy agreement, the tenant does potentially have some leverage and could use this to get the desired effect.

Mario Volpi is the sales and leasing manager at Engel & Volkers. He has worked in the property sector for more than 35 years in London and Dubai. The opinions expressed do not constitute legal advice and are provided for information only. Please send any questions to mario.volpi@engelvoelkers.com

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Engine: 3.7-litre V6

Transmission: seven-speed automatic

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HIV on the rise in the region

A 2019 United Nations special analysis on Aids reveals 37 per cent of new HIV infections in the Mena region are from people injecting drugs.

New HIV infections have also risen by 29 per cent in western Europe and Asia, and by 7 per cent in Latin America, but declined elsewhere.

Egypt has shown the highest increase in recorded cases of HIV since 2010, up by 196 per cent.

Access to HIV testing, treatment and care in the region is well below the global average.  

Few statistics have been published on the number of cases in the UAE, although a UNAIDS report said 1.5 per cent of the prison population has the virus.

Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

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Engine: 4.4-litre twin-turbo V-8 petrol enging with additional electric motor

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UAE currency: the story behind the money in your pockets

Chelsea 2 Burnley 3
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Dubai Bling season three

Cast: Loujain Adada, Zeina Khoury, Farhana Bodi, Ebraheem Al Samadi, Mona Kattan, and couples Safa & Fahad Siddiqui and DJ Bliss & Danya Mohammed 

Rating: 1/5

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UAE currency: the story behind the money in your pockets
What can victims do?

Always use only regulated platforms

Stop all transactions and communication on suspicion

Save all evidence (screenshots, chat logs, transaction IDs)

Report to local authorities

Warn others to prevent further harm

Courtesy: Crystal Intelligence

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Funds raised: $22 million

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Favourite activities: Bungee jumping

Favourite quote: “My people and I will not settle for anything less than first place” – Sheikh Mohammed bin Rashid.

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Despacito's dominance in numbers

Released: 2017

Peak chart position: No.1 in more than 47 countries, including the United States, the United Kingdom, Australia and Lebanon

Views: 5.3 billion on YouTube

Sales: With 10 million downloads in the US, Despacito became the first Latin single to receive Diamond sales certification

Streams: 1.3 billion combined audio and video by the end of 2017, making it the biggest digital hit of the year.

Awards: 17, including Record of the Year at last year’s prestigious Latin Grammy Awards, as well as five Billboard Music Awards