Housing fee: Residents end up paying more rent

 DUBAI:  "We couldn't believe our luck when our landlord informed us that the annual rent for our two-bedroom villa would go down from Dh150,000 to Dh85,000 when our contract ended in July," said A. Kumar, a business consultant who lives in Mirdif.

Come August though and Kumar received her Dubai Electricity and Water Authority (Dewa) bill with the unchanged housing fee of Dh625, instead of Dh354, based on the new rent.

"My landlord told me to go to Dewa with my new contract and register the updated rent to make the necessary changes in my next bill," she said.

Dewa informed her that the overcharged amount of Dh271 would be adjusted against her next bill. "However, my September bill still showed the old fee of Dh625! Forget about a refund, I was still paying excess."

When Kumar and her husband approached Dewa again, they were told that unless they presented the contract and requested the refund at the Dewa headquarters, no change would be registered. "We had gone to the Dewa office in the Al Safa area," said Kumar.

"The person there had failed to inform us of the need to go to the head office. On the contrary, we were assured that the excess amount would be deducted from our next payment." The couple has since visited the head office. "Dewa today owes us Dh542. To that end, our next housing fee should be non-existent."

According to a source at Dewa, there is a lack of coordination between them and Dubai Lands Department that handles all freehold and leasehold contracts. "It is up to the home-owner to register the change of rent with the Lands Department. Unless they do that, we would continue charging the tenant a housing fee based on the last registered rent."

Housing fees are calculated as five per cent of the total rent, divided by 12, since it's paid on a monthly basis. A.D., a media PR assistant, who lives at Al Warqa has a similar complaint. A.D. upgraded his lifestyle when he moved from a flat in International City to a three-bedroom villa at Al Warqa. However, it took them seven months to realise that they were paying a housing fee that was in excess of what it should be.

"We've been paying Dh485 per month, unaware of what the rules are, as we weren't charged a fee in our old flat," he said. When informed that the fee should be five per cent of the rent on a monthly basis, A.D. was flabbergasted.

"I can't believe I've been paying Dh485 a month when, in fact, I should have paid only Dh271. When we moved to Al Warqa, I went to Dewa at Al Safa and registered my new contract with them. So how can they still charge me the old fee?" A.D. is now in the process of applying for a refund of nearly Dh1,500 from Dewa.

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