When you buy an apartment, townhouse or villa in a managed community, the purchase price is only part of the cost. Shared buildings and communities need cleaning, security, landscaping, lifts, pools and long-term repairs – and owners pay for them through service charges.

What service charges usually cover

Security, reception and access control
Cleaning of common areas and waste management
Maintenance of lifts, pools, gyms and landscaping
Common-area electricity, water and cooling
Building insurance for shared structures
Management fees and administration
Contributions to a reserve or sinking fund for major repairs

How charges are calculated

Service charges are commonly allocated by unit area or an agreed share of the building or community. Check which measurement is used and whether there are separate community-level and building-level charges – some master-planned developments have both.

The role of owners’ associations and management

In jointly owned buildings and communities, a management body or owners’ association typically sets budgets, appoints facility managers and enforces community rules. Well-run associations publish budgets, collect fees transparently and plan for future repairs. Poorly run ones can lead to deteriorating buildings and disputes.

Documents to request before buying

Latest service-charge invoice for the unit and confirmation of no arrears.
Current annual budget and what it includes.
Reserve-fund balance and any planned major works.
Community rules: pets, renovations, short-term letting, parking.
Minutes or notices of recent owners’ meetings, if available.

Red flags

Large unpaid service charges across the building
No reserve fund despite ageing lifts, pools or façades
Frequent, unexplained fee increases
Visible neglect of common areas
Rules that conflict with your plan – for example restrictions on letting

Service charges and rental returns

For investors, service charges directly reduce net yield. Include them in every calculation alongside maintenance, management and vacancy. Our guide How to Judge Property Value in Muscat shows how running costs affect value.

Tenants and service charges

In most leases, the owner pays service charges and the tenant pays rent and agreed utilities. Confirm this in the lease, particularly for furnished or all-inclusive rentals. See our renting guide.

Community guides: Al Mouj, Muscat Hills and coastal communities beyond Muscat. Need figures for a specific unit? Ask Muscat Gates.

Frequently asked questions

Who pays service charges, owner or tenant?

Usually the owner, unless the lease clearly states otherwise.

Can service charges increase?

Yes, budgets can change with costs and planned works. Review the history of charges before buying.

What is a reserve fund?

Money set aside for major future repairs, such as lift replacement or façade works.

General information only; not legal or financial advice. Confirm fees for the specific property in writing.

Cover photo: A1000 (CC0), Wikimedia Commons