Will Dubai property owners not paying service fees get a hit in their credit rating?

Will Dubai property owners not paying service fees get a hit in their credit rating?

Dubai: Homeowners in Dubai failing to meet service charge payments on their properties may find this will cost them quite dearly going forward. These defaults could be reflected in the individual’s credit score ratings, in the same way delays in settling credit card dues or monthly utility bills are. Some of the leading OA (homeowners association) and property management companies are pushing for service charge defaults to be included in the credit ratings. These ratings are maintained by the Al Etihad Credit Bureau and offer an instant update on the standings of individuals and businesses when it comes to paying up. These ratings are then used by banks and others lenders to decide whether it’s worthwhile to have exposures with them. It was in earlier this year that added non-payment of electricity and water bills within the credit scores. It was said at the time that the ambit of these scores would be widened to include other parameters, in the interests of maintaining full transparency. According to Saeed Al Fahim, CEO of Stratum, one of the biggest privately owned OA management companies in the UAE, “If individuals are hit by what’s on their credit scores, it will be a major