The move comes after some developers angered property investors by increasing service charges recently at a time when property prices are falling.
Marwan Bin Ghalita, RERA chief executive, said the authority has received a large number of complaints. 'Master developers have been increasing service charges and not being transparent about the amount while selling properties,' he said.
RERA is currently in the middle of bringing out new regulations covering service charges. Under Strata Law No 27, 2008, there will be a single formula for developers to follow when calculating service charges.
The authority is also reminding all owners to read their contracts and pay the approved service charges as prescribed by RERA to get the best services.
Until now most developers usually fix price as per their own calculations and then assign the maintenance works to their subsidiaries. It has been regarded as a way to make extra money.
Also most property developers do not disclose the maintenance fees while selling apartments or villas, as a strategy. Buyers often get a shock after seeing the bills and it is something that many of them have not considered or budgeted for.
Maintenance and service charges usually range from Dh12 to Dh30 per square feet. Although in most premises repairs are done by the contracting company as part of the deal.
Sultan Bin Mijrin, director general of the Land Department has asked developers to register properties with the Land Department in order for the department to calculate and process the service charges.
The new regulation is widely welcomed. 'It is a very good initiative and has been pending for a long time,' said Sudhir Kumar, managing director of property consultancy Realtor's International.
'The new regulation should be strictly enforced and it will help restore investor confidence. Service charge has been a major issue for property buyers. Putting this under a system and monitoring any increase would help end-users,' he added.