Owners Association company in Dubai: Why it’s important
If you’re a property owner, particularly of a unit in a building, you may be familiar with the term “Service Charge”. You may see the maintenance team conducting scheduled inspections and may witness the landscaping or facade cleaning service of the building. The upkeep of a building is not an easy task. It requires meticulous attention to detail and preemptive thinking to ensure safety and secure the aesthetic maintenance of the building. To make sure these onerous tasks are taken care of, developers hire Owners Association companies in Dubai to secure the well-being of the jointly owned property (JOP).
What is an Owners Association company in Dubai?
An Owners Association company, also known as an OA company, is a legal entity that represents the interests of property owners within a particular development or community in Dubai. These companies are responsible for managing the common areas and amenities within the development, as well as enforcing rules and regulations for the benefit of all property owners.
OA companies are formed by a developer or a group of developers who are responsible for the construction and management of a development or community. The developer will typically transfer ownership of the common areas and amenities to the OA company once the development is completed and handed over to the property owners.
What do OA companies do?
Owners Association companies in Dubai are governed by a board of directors, typically selected by the property owners themselves or appointed by the Dubai Land Department. Owner Association companies in Dubai carry a plethora of responsibilities, a few of which involve securing the upkeep and functionality of all building amenities for residents, invoicing and collecting the Service Charge and enforcing the rules and regulations of the property. Their assistance in the property is of utmost importance, especially the allocation of financial resources.
At the beginning of each year, the Owners Association hosts a meeting where the estimated Service Charge is calculated. The Service Charge fee varies, it differs from one building to another. The formula to calculate a Service Charge is quite simple: Total budget ÷ sellable area = Service Charge.
Nevertheless, the budget calculations depend on the level of service provided in the building. Variables like location, security, landscaping and maintenance for common areas are also factored in. This entails that a property with luxurious units and common areas, will require a higher budget, or as we call it in the industry:General Fund. This fund is used to pay for the scheduled maintenance that secures the upkeep of the building.
Owners Association companies in Dubai are entities that also put preemptive thinking at the forefront of their service, which is why a “Reserve Fund” is also calculated at the beginning of each financial year. The more amenities and services exist in the building, a higher financial amount will be allocated to it to cover any unexpected expenses.
An Owners Association company can help you calculate all the financial resources needed to deliver the best residential experience for all tenants living in the property.
Dubai is a luxurious property hub. The infrastructure, amenities and furniture are of high quality. The service provided must be up to par with the ambience emanating from all corners of the building. A high quality Owners Association company in Dubai will train its staff and deliver a high standard level of service to all its residents. The Residences Managers of the building are experts at providing a hospitable environment, making all residents feel comfort and security due to the OA’s reliable service.
An OA company will help developers bring financial order to the property, make sure all fees are invoiced, collected and allocated properly. An Owners Association company in Dubai will meet the luxurious expectations and surpass the service standard levels. Such a firm is not a commodity, but rather a necessity that will elevate the upkeep of the property and deliver residents a pleasant living experience.