Prompt Payment for Property Services in Dubai

In Dubai, failing to pay service charges on property will soon negatively impact your credit score, particularly for UAE residents. This change, expected to be implemented soon, puts non-payment of service charges on par with missed credit card or loan payments. A poor credit score can create difficulties in obtaining future loans, whether for personal or business purposes.

The Etihad Credit Bureau is expanding its credit rating system to include property-related payments, such as service charges and rent. This means that timely payment of service charges is now as crucial as paying loan installments or utility bills. This change applies across all emirates, not just Dubai.

This move comes as non-payment of service charges has been a persistent issue, especially after the 2021 property boom. While measures like legal notices and restrictions on renting or selling properties have been in place, the problem persists. The Dubai Land Department offered flexible payment plans in March 2024 to address the issue.

With service charge payments impacting credit scores, property owners now have a strong incentive to pay on time. This is expected to improve collections and ensure the proper maintenance of buildings and communities.