Property Service Charges in Saudi Arabia: What Buyers Should Know in 2026

Property service charges can materially affect the annual cost and investment return of an apartment, gated villa or commercial unit in Saudi Arabia. Before purchasing, buyers should review the owners’ association, approved budget, common-area expenses, reserve fund, unpaid invoices and the method used to calculate the unit’s contribution.

1. What are property service charges?

2. Which properties normally have service charges?

3. What can service charges include?

4. How are service charges calculated?

5. Who approves the annual budget?

6. Documents buyers should request

7. How to check unpaid service charges

8. Service charges for off-plan properties

9. Reserve funds and special assessments

10. Contract protections for buyers

11. Red flags to investigate

12. Final service-charge checklist

13. Conclusion

14. Frequently asked questions

What Are Property Service Charges in Saudi Arabia?

Property service charges are recurring payments collected from property owners to manage, operate, repair and maintain the common areas and shared facilities of a jointly owned building or real estate complex.

Depending on the development, these charges may also be described as:

• owners’ association fees;

• community charges;

• maintenance charges;

• building-management fees;

• common-area charges;

• association subscriptions; or

• facility-management charges.

Service charges are separate from the property’s purchase price. They may also be separate from private utility bills, mortgage instalments, insurance, registration-related costs and taxes associated with the purchase.

The safest sequence for a buyer is:

Identify the property → Check the owners’ association → Review the approved budget → Confirm the unit’s share → Check unpaid invoices → Inspect the common areas → Protect the contract → Complete the purchase

The important principle is simple:

A property’s affordable purchase price does not automatically mean that its ongoing ownership costs are affordable.

1. Which Saudi Properties Normally Have Service Charges?

Property service charges in Saudi Arabia are most relevant to jointly owned properties where individual owners share responsibility for common areas or facilities.

Examples include:

• apartment buildings;

• residential towers;

• gated villa communities;

• mixed-use developments;

• office buildings;

• retail complexes;

• serviced residential developments;

• compounds with separately owned units;

• master-planned communities; and

• developments with shared recreational facilities.

A detached villa on an entirely independent parcel may not have the same building-level charges as an apartment. However, it may still be subject to community charges if it forms part of a managed development with shared roads, landscaping, security or recreational facilities.

The buyer must therefore check both:

1. charges applying to the individual building; and

2. charges applying to the wider community or real estate complex.

In some developments, a buyer may contribute to more than one management structure, such as a building owners’ association and a separate complex or master-community association.

2. What Does Saudi Law Say About Owners’ Fees?

Saudi Arabia’s Law of Ownership, Subdivision, and Management of Real Estate Units regulates the management of jointly owned properties and owners’ associations.

The law states that an owners’ association may receive fees paid by owners and that its funds are used to manage the jointly owned property and maintain its common parts.

Each owner is required to contribute to the costs of:

• managing the jointly owned property; and

• maintaining the common areas.

An owner cannot simply give up or disclaim their share of the common parts to avoid paying the applicable fees.

Ownership of a unit in a jointly owned property with an owners’ association is also treated as acceptance of the association’s charter and general assembly decisions, subject to the governing law.

Buyers should therefore review the owners’ association documents before completing the purchase—not after receiving the keys.

3. What Can Property Service Charges Include?

The exact services covered depend on the building, community, annual budget and management contracts.

Common service-charge items may include:

Building cleaning

This may cover cleaning entrances, corridors, reception areas, stairs, lifts, parking areas and other shared spaces.

Security and access control

Charges may fund security personnel, CCTV systems, entry barriers, intercoms, security monitoring and visitor-management systems.

Lift maintenance

Buildings with lifts may require regular servicing, inspections, emergency support, repairs and replacement planning.

Common electricity and water

Shared expenses may include electricity for corridors, exterior lighting, pumps, lifts and cooling systems, together with water used for cleaning and landscaping.

Mechanical and electrical systems

The implementing regulations recognise that common parts can include shared mechanical, electrical and electromechanical systems.

Maintenance may therefore cover:

• water pumps;

• fire-safety equipment;

• central air-conditioning systems;

• ventilation systems;

• electrical rooms;

• sewage systems;

• rainwater drainage;

• shared communication networks; and

• other building infrastructure.

Landscaping and external areas

Managed communities may charge for gardens, irrigation, pathways, exterior lighting, roads and shared outdoor spaces.

Recreational facilities

Properties with swimming pools, gyms, children’s areas, clubhouses or sports facilities may have higher operating and maintenance costs.

Waste-management services

This can include waste collection, shared bins, cleaning and disposal arrangements.

Building insurance

Where arranged through the owners’ association, the budget may include insurance relating to the common property. Buyers should check what is insured and what requires separate coverage.

Management and administration

The association may pay a property manager, facility-management company, accountant, auditor, legal adviser or other service provider.

Repair and replacement work

Part of the annual charge or reserve contribution may be allocated to future repairs involving lifts, façades, roofs, waterproofing, pumps, cooling equipment or other major shared assets.

4. What Is Usually Not Included?

Buyers should not assume that every ownership expense is covered by the service charge.

Costs that may be separate include:

• electricity consumed inside the unit;

• private water consumption;

• internet and telecommunications;

• maintenance inside the apartment or villa;

• mortgage payments;

• personal contents insurance;

• repairs caused by the owner or occupant;

• alterations requested by an individual owner;

• municipal or registration-related charges;

• property-management fees for renting out the unit;

• separately metered cooling charges; and

• major one-time contributions outside the regular budget.

Ask for a written list of inclusions and exclusions. A statement such as “all maintenance included” is too general for a major property purchase.

5. How Are Property Service Charges Calculated?

Saudi law generally allocates common-area management and maintenance costs according to the percentage of the individual unit’s area compared with the total area of the subdivided units.

A simplified calculation is:

Individual unit area ÷ Total area of relevant units × Shared annual costs

For example, assume:

• total relevant unit area: 10,000 square metres;

• buyer’s unit area: 150 square metres; and

• approved shared annual costs: SAR 1,000,000.

The illustrative calculation would be:

150 ÷ 10,000 × SAR 1,000,000 = SAR 15,000 per year

This is only an example. It is not a market estimate or prescribed Saudi service-charge rate.

The actual calculation should follow:

• the official unit subdivision document;

• the unit’s share in the common parts;

• the owners’ association charter;

• the approved annual budget;

• applicable general assembly decisions; and

• the property’s legal and management structure.

Mixed-use developments

In a mixed-use property containing residential, retail, office or hospitality units, the amount may vary according to the unit’s type of use.

A retail unit that creates different security, cleaning, access or utility requirements may not necessarily be treated identically to a residential apartment.

Facilities benefiting only certain owners

Where a specific common part benefits only certain units, the owners benefiting from that facility may share its management and maintenance costs according to their relevant unit areas, unless a valid alternative arrangement applies.

This can matter when:

• one tower has facilities not available to another;

• only certain units use a private entrance;

• a separate parking structure serves selected owners;

• retail units use different common systems; or

• part of a development has exclusive recreational facilities.

6. Is There a Standard Service-Charge Rate in Saudi Arabia?

There is no single nationwide rate that tells every Saudi property owner to pay the same amount per square metre.

Property service charges in Saudi Arabia vary according to:

• property size;

• unit share;

• number of units;

• age and condition of the building;

• quality of construction;

• number of lifts;

• security arrangements;

• landscaping;

• swimming pools and gyms;

• central cooling;

• facility-management contracts;

• insurance;

• energy and water consumption;

• planned repairs;

• reserve-fund requirements; and

• residential, commercial or mixed use.

A luxury tower with continuous security, reception services, several lifts and leisure facilities will normally require a different budget from a small apartment building with limited common areas.

Buyers should compare the charge with the actual services and financial records rather than relying only on a low advertised figure.

7. Who Approves the Annual Service-Charge Budget?

Under the Saudi jointly owned property framework, the property manager prepares a draft annual budget covering:

• management of the jointly owned property; and

• maintenance of the common parts.

The draft budget is submitted to the owners’ association’s general assembly for approval. The general assembly also reviews the manager’s report and the association’s financial position.

The association’s charter should address:

• how owner contributions are determined;

• payment methods;

• the beginning and end of the financial year;

• budget-disbursement rules;

• financial controls;

• use and management of common areas; and

• procedures for signing contracts and financial obligations.

This is why a buyer should request both the current budget and the association charter.

A sales representative’s verbal estimate is not a substitute for the approved financial documents.

8. What Financial Records Can an Owner Review?

The manager must prepare financial statements and a report concerning the association’s activities and financial position for each financial year.

The regulations also require detailed accounting records of amounts owed by owners and third parties. Each owner or authorised representative has the right to request access to those records.

For larger associations, a licensed auditor must be appointed where:

• the jointly owned property or complex contains 100 or more subdivided units; or

• the association’s assets exceed SAR 1 million.

Before buying, request the available:

• approved annual budget;

• latest financial statements;

• manager’s annual report;

• auditor’s report, where applicable;

• recent general assembly minutes;

• service and maintenance contracts;

• schedule of owner contributions;

• reserve-fund balance;

• record of major planned expenditure; and

• invoices applying to the unit.

9. How Can Buyers Check Service-Charge Invoices?

REGA’s Mullak platform supports owners’ associations and the management of jointly owned properties.

Its services include the ability for association property owners to view subscription fees and payment information.

The official Mullak invoice service describes a process through which a beneficiary can:

1. log in to the platform;

2. select the invoices service;

3. pay outstanding invoices; and

4. have payment verified by the property manager.

Service availability depends on the association and the property’s registration and management status.

Buyers should ask the seller to provide current evidence showing:

• invoices issued for the unit;

• amounts already paid;

• outstanding balances;

• late or disputed amounts;

• payment dates;

• any approved instalment arrangement; and

• confirmation from the association or manager where available.

The buyer should independently verify the relevant records whenever possible.

10. Can the Seller Have Unpaid Service Charges?

Yes. A unit may have outstanding association invoices even when the property itself appears well maintained.

Before completing the transaction, establish:

• whether any regular fees are unpaid;

• whether a special contribution has been approved;

• whether the seller has disputed an invoice;

• which party must pay charges covering the completion date;

• whether a payment certificate or clearance can be obtained; and

• how any unknown liability will be handled in the contract.

Do not assume that outstanding service charges automatically disappear when ownership changes.

The legal and contractual treatment can depend on the property records, association documents, invoice, completion arrangements and surrounding circumstances. A qualified Saudi legal adviser should confirm responsibility for material outstanding amounts.

The purchase contract should expressly state that charges relating to periods before completion remain the seller’s responsibility, unless the parties deliberately agree otherwise.

Buyers should combine this check with Saudi property title deed verification and independent property ownership verification.

11. What Is a Reserve Fund?

A reserve fund is money set aside to cover costs that exceed the ordinary approved operating budget or to prepare for significant future expenditure.

The implementing regulations allow the general assembly to decide to maintain a reserve fund according to the association charter. Owners may also agree to establish such a fund.

A reserve fund may help finance future work involving:

• lift replacement;

• roof repairs;

• waterproofing;

• exterior painting;

• façade repairs;

• central cooling equipment;

• pumps and water systems;

• fire-safety systems;

• parking structures; and

• major landscaping or infrastructure work.

A healthy reserve may reduce the risk of sudden large invoices, but its existence does not guarantee that it is sufficient.

Ask:

• What is the current reserve balance?

• How much does each owner contribute?

• Is the reserve included in the regular service charge?

• Is there a planned-maintenance schedule?

• Have reserve funds been used recently?

• Are major repairs expected?

• Are any special contributions already approved?

• Is the reserve held in the association’s bank account?

12. What Is a Special Assessment?

A special assessment is an additional amount requested from owners outside, or in addition to, the normal recurring charge.

It may become necessary when:

• emergency repairs are required;

• the regular budget is insufficient;

• the reserve fund is inadequate;

• a major asset must be replaced;

• building defects require urgent work; or

• owners approve a significant improvement.

Before purchasing, review recent meeting minutes and ask whether any additional payment has been:

• proposed;

• approved;

• invoiced;

• deferred; or

• discussed but not yet formally decided.

A low annual fee can be misleading when a substantial special contribution is expected immediately after completion.

13. Service Charges for Off-Plan Properties

Off-plan buyers may receive only an estimated service charge because the property is not yet operational.

The final amount can change when:

• construction is completed;

• actual utility contracts are known;

• the facility manager is appointed;

• the number of operating units changes;

• the owners’ association is established;

• common facilities open; or

• the first operating budget is prepared.

Before signing, ask the developer for:

• estimated annual service charges;

• the estimated rate per square metre, if applicable;

• services included in the estimate;

• assumptions used to calculate the amount;

• initial reserve-fund contribution;

• proposed association structure;

• proposed management company;

• responsibility for unsold units;

• treatment of community-level charges; and

• the process for approving the first budget.

Saudi regulations require the disclosure statement for a subdivided unit to include information about the unit, common-property share, association charter and general assembly decisions where applicable. The statement forms part of the registered sale contract.

Buyers should also follow the steps in our guide on checking a Saudi real estate developer before buying.

14. Does an Empty Unit Still Have to Pay?

Generally, an owner cannot avoid common-area charges simply because:

• the unit is vacant;

• the owner lives abroad;

• the property is being renovated;

• the owner does not use the swimming pool;

• the owner rarely uses the lift; or

• the unit is not producing rental income.

The charges relate to ownership and the maintenance of the jointly owned property, not only to how frequently the owner personally uses the facilities.

Different treatment may apply to facilities that legally benefit only specified units, but that should be established through the approved property and association documents.

15. Who Pays When the Unit Is Rented?

Under the governing law, the owner generally remains liable before the owners’ association and others for obligations connected with the unit and common parts unless an appropriate arrangement applies with the tenant.

A lease may require the tenant to reimburse or directly pay certain charges, but buyers should distinguish between:

• the owner’s responsibility to the association; and

• the tenant’s contractual responsibility to the owner.

An investor should not assume that every service charge can automatically be transferred to the tenant.

Before calculating rental returns, check:

• expected annual rent;

• service charges;

• property-management commission;

• vacancy;

• repairs inside the unit;

• insurance;

• utilities paid by the landlord; and

• possible reserve or special contributions.

Our Saudi real estate investment guide explains why operating costs must be included when estimating a property’s net return.

16. How Service Charges Affect Investment Returns

Investors should calculate net income rather than relying only on gross rent.

A simplified calculation is:

Annual rent − service charges − management fees − maintenance − vacancy − other owner costs = estimated net income

Example:

These figures are purely illustrative.

A property with higher rent may produce a weaker net return if the building has expensive facilities, inadequate reserves or repeated special assessments.

17. Documents Buyers Should Request Before Purchasing

Request these documents before signing an unconditional purchase agreement:

Property documents

• ownership registration deed or applicable title deed;

• unit subdivision document;

• floor plan;

• unit area;

• parking and storage allocation;

• unit’s share in the common areas; and

• details of rights and restrictions.

Association documents

• registration information for the owners’ association;

• association charter;

• general assembly decisions;

• latest meeting minutes;

• name and authority of the manager;

• facility-management agreement; and

• building or community rules.

Financial documents

• approved current-year budget;

• previous annual budgets;

• latest financial statements;

• auditor’s report, where applicable;

• reserve-fund balance;

• unit account statement;

• current invoices;

• proof of seller payments;

• expected major repairs; and

• proposed special assessments.

Operating documents

• list of services included;

• maintenance contracts;

• insurance information;

• construction and operational warranties;

• shared-meter arrangements;

• complaints relating to common facilities; and

• planned repair schedule.

The seller’s disclosure should be reviewed together with the broader Saudi property purchase contract checklist.

18. Contract Protections Buyers Should Consider

The purchase contract should address:

• the current annual service charge;

• the unit’s calculation percentage;

• building-level and community-level charges;

• the latest approved budget;

• unpaid seller invoices;

• charges covering the completion year;

• apportionment on the ownership-transfer date;

• reserve-fund contributions;

• approved special assessments;

• responsibility for previously approved work;

• requirement for payment evidence or clearance;

• consequences of inaccurate disclosure; and

• buyer termination or compensation rights where appropriate.

The contract should not rely only on phrases such as:

• “service charges approximately SAR 10,000”;

• “maintenance included”;

• “no charges currently known”; or

• “buyer accepts all community obligations.”

Require specific documents, dates, amounts and responsibility clauses.

19. Property Service-Charge Red Flags

Investigate further if:

• the seller cannot identify the owners’ association;

• no approved budget is available;

• charges are quoted only verbally;

• the invoice does not identify the unit;

• the seller refuses to provide a unit account statement;

• the association is inactive or poorly documented;

• owners frequently complain about broken facilities;

• the building has very low fees despite expensive amenities;

• the reserve fund is empty;

• major repairs have been repeatedly delayed;

• financial statements are unavailable;

• the service charge has increased sharply without explanation;

• unpaid invoices are disputed;

• shared utility costs are unclear;

• the developer controls the management process without adequate records; or

• the purchase contract does not allocate existing liabilities.

20. Final Service-Charge Checklist

Before purchasing a jointly owned property in Saudi Arabia, confirm:

• the exact unit and registered owner;

• whether an owners’ association exists;

• whether the association is registered;

• the current association charter;

• the unit’s share in common areas;

• the method used to calculate charges;

• the current approved annual budget;

• services included and excluded;

• building and community-level charges;

• current invoices for the unit;

• seller payment evidence;

• reserve-fund balance;

• proposed or approved special assessments;

• recent financial statements;

• auditor reports where applicable;

• general assembly decisions;

• major maintenance plans;

• treatment of shared utilities;

• contract allocation of pre-completion charges; and

• the total effect on your annual ownership cost.
  

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Conclusion

Property service charges in Saudi Arabia should be treated as a core part of property due diligence, not as a minor cost to investigate after purchase.

The amount can vary substantially according to the unit’s area, property type, shared facilities, approved budget, reserve requirements and management arrangements. Buyers should review the owners’ association documents, financial records, unpaid invoices and planned expenditure before entering an unconditional commitment.

Do not compare properties using purchase price alone. Compare their total annual ownership cost, financial management, reserve position and expected future maintenance.