Introduction

While it may be true that buying a property is an investment, it is also the case that this investment needs to be properly taken care of and not risk being damaged. This is exactly the reason why homeowners associations have been created – and in our podcast, Reza Mohammadi, Chairman of the Owners Committee for the Burj Residences in Downtown Dubai, shares his team's view of how the overall investment value for the properties has been maintained consistently in order to maintain a high demand from purchasers and investors alike. Know more about their goals and how they are organised, as well as about the obligations of every homeowner in a community. 

Defining the Owners Association Committee

The Real Estate Regulatory Authority (RERA) created the owners association committee and plays an advisory role in the running of the community and manages the property so the investor gets the best returns on acquisition. The owners community is a group of individuals who represent the collective body of all owners in the community. To regulate the real estate industry in Dubai, protect home purchasers and make the property investment value predictable. Ensure that owners are accountable for the condition of their properties and ensure that they are well maintained. 

The primary responsibility of the owners association is to maintain property investment and protect home purchasers by keeping buildings and surrounding areas in a safe environment for residents. This means addressing city concerns about the common areas and making sure any problems are corrected. The management body of the owners association should ensure that their building complex is compliant with city codes and regulations and stays up to date on repairs and renovations that need to be done. 

Who can be part of this committee?

The criteria for joining the owners committee is, members:-

- must be of the legal age of 18 and above.

- be a resident of the property.

- have good conduct from the Dubai Police.

- pay all the service charges and utility charges associated with your property.

Role of the Owners Committee and the Chairman

The owners committees are an essential part of the association. They provide an avenue for members to have an equal voice in the community and an opportunity for them to have input on issues that affect their daily lives. 

The committee members typically represent different areas of expertise, such as landscaping and maintenance, property management, entertainment and social events, finance, legal matters and so forth. The goal of these committees is to ensure that the community is well maintained and enhanced. The members of these committees bring valuable skills to the committee and work together to streamline operations within the community. 

Since the committee is not a legal entity, it should not be viewed as a burden or obligation but rather as an opportunity to serve in a leadership capacity within the community association. In addition, participation on a committee may give you some added experience in a field that interests you or expands your horizons about what can be accomplished within your association but the services are not payable. 

The committee helps with decision making because they offer different perspectives on a particular subject. Weighing out the merits and demerits while allowing members to share their expertise so that everyone can benefit from their knowledge and experience. With quite a number of buildings, there is a need to meet regularly and reach a consensus.

Any communication with RERA, contractors and external companies like facility management companies, security companies, is done by the Emaar Management Company and in circumstances where the committee needs to meet with these external companies they proceed with contact through them.

How is the Service Charge Calculated?

Every year, Emaar Community Management prepares the whole expenditure for the coming year. The budget is then reviewed and commented on by the board. Once approved by RERA, we calculate the charges based on total area of apartment including balcony and other factors such as location and amenities. 

The Committee has reduced charges over the years due to an increase in the number of apartment owners, which means less maintenance work is required. As a result, we have sufficient money in the budget to improve and maintain the community as well as adding value to your money by keeping it prestigious and up to date with latest developments. We also ensure transparency by auditing reports and making them available online for all residents to view at any time they like. 

Importance of a Sinking Fund

The Sinking Fund is a fund that is set aside for future improvements or emergencies. In real estate, it is used for the maintenance and repair of common property, such as building exterior and common areas. This is usually done by setting aside a portion of monthly dues each month in a separate account, which serves as an account to pay for major repairs or replacements of the building. 

In order to maintain our building's value and attract new buyers, the committee is thinking of future renovations projects. We need to make sure that our building looks good and that it has everything that current owners want. And to have enough money to pay for all these improvements, a sinking fund is an excellent way of doing both things at once! 

The committee’s goal is to make sure that your investment will be protected so that it can continue to increase in value over time. One way the committee does this is by budgeting for regular maintenance works every year. These can include identifying other areas that need attention and significant investment such as maintaining the car parking lots, refurbishing the gyms, automation access to the parking area, new lobbies, landscaping etc… in line with trendy designs will add value to your property and increase its resale value. 

How the Committee Ensures Minimum Community Disruptions

The committee works with Holiday Homes operators to ensure the residents have a harmonious experience in their homes, a win-win situation for all concerned. In collaboration, they came to an agreement on the certain processes that they would follow when it comes to selling or renting apartments to buyers. The agenda was to lessen the impact of disruptions on residents. 

A survey was carried out to understand the issues and concerns of residents so as to take notice of their complaints. The data collected enabled the committee to reach at the following guidelines:-

●        No loud music would be accepted in the building after certain hours.

●        No late or early checking.

●        And only checking in families, not singles. 

What is Expected of the Committee Members?

It is the duty of the owners committee to ensure that the community is well maintained and that all members are happy. The members of the committee in return are responsible for attending board meetings and bringing in extra skills or expertise if required. The owners committee should set up a meeting with Emaar Management Company to discuss any issues and concerns that might arise from time to time. 

According to Reza, the main aim of the owners committee is to ensure that everyone enjoys their choice in investing in the building and staying in the community. Members of the committee can do this by ensuring that you are fully committed and dedicated to the job, which will require some time commitment from you. As well as taking care of certain matters, one will need to be aware of any changes in legislation or policies so as to maintain compliance with them. 

Best Advice for Expats Looking to Invest in Real Estate in Dubai

Certified advisors and experienced investors such as Reza will advise you that the time to invest is now and the great place to invest in real estate is the United Arab Emirates. The region is fast-growing, dynamic and safe to live in. 

Over the years there have been increasing opportunities for expats looking to invest in property. It’s become the hub for foreign investors looking to buy property overseas as well as for expats who want to rent or buy homes. And there's no doubt that their investment could have been a lucrative one, given how property prices have skyrocketed in Dubai over the past few years. 

Listen to the full podcast to hear how this community has been working together to make their home a better place to live, whilst safeguarding their investment.