WHY DUBAI PROPERTY OWNERS CAN'T AFFORD TO MISS SERVICE FEES

Non-payment of property fees on time will soon be a major issue for residents

- BY MANOJ NAIR

For property owners in Dubai, missing out on their service charges will only add to their problems. More so if they are also resident in the UAE.

Because soon enough even before this year is out non-payment of services charges will become part of the UAE's credit score rating system (along with missing rental payments in the case of tenants, or not meeting payment obligations on offplan property purchases).

When that happens and the individual's credit score rating reflects it, 'for residents in the UAE, that means future difficulties in raising loans whether as an individual or a business owner', said an analyst. "It places non-service charge payments on property on the same footing as not meeting your credit card obligations or bank loans.

"Because at some point, the chances are that a resident of the country will be placed in a situation where he needs to raise a loan. And when that happens, if your credit score is poor, it will be difficult."

The UAE's Etihad Credit Bureau is putting the finishing touches to including property-linked payments to the critical credit rating system.

Tracking payments

"Typically, the UAE credit score tracks monthly payments on loan EMIs and utility/phone bills, but with service charges, it will be expanded to include quarterly payments," said Marwan Ahmad Lutfi, Director-General of Etihad Credit Bureau.