The service charge is the annual charge for maintenance, security, cleaning and the shared areas of a building, calculated per square foot.
The level varies widely by location and specification, from moderate rates in simple communities to high rates in amenity-rich prime buildings. It begins with handover and is regulated through the official Mollak system of the DLD.
A low service charge sounds good but can point to deferred maintenance. What matters is the ratio of cost to substance.
TAH view
We assess the service charge in relation to the actual quality of the development and the achievable rent, not as an isolated figure.
Understand ongoing costs?
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