What a service charge actually pays for, line by line
Chiller, security, lifts, the sinking fund — how a Dubai tower splits its bill per square foot, and the three lines worth querying before you sign.
How the figure is built
A service charge is quoted per square foot per year and multiplied by the area on your title deed, which is why two apartments on the same floor pay different amounts. The rate is set by the owners association, filed with the regulator, and can be challenged — but only against the budget it was calculated from.
Where the money goes
In a typical Dubai tower the largest lines are chilled water, security and cleaning, lift maintenance, insurance and the management fee, followed by the reserve fund. Chiller is the one that surprises people: in some buildings it is bundled into the service charge and in others it is billed separately to the unit, and comparing two buildings without checking which is which will mislead you by thousands.
The lines worth querying
Look at the reserve fund contribution, the management fee as a percentage of the total, and anything filed as a general or miscellaneous provision. A reserve that is too small is a special levy waiting to happen; a management fee well above the market is worth a question at the annual meeting.
Ask for the audited accounts rather than the budget. The budget is what the association intends to spend and the accounts are what it spent, and the gap between the two is the most useful number in the document.