Sharjah tenants may have to pay additional utility deposits

About 200,000 households and businesses, including those who already paid the original deposit years ago, are likely to bear the impact of this decision, which was issued last month with immediate effect, reports Gulf News.

The deposits of tenants in studio, single and double bedroom apartments have been doubled from Dh.1000. Tenants in three-bedroom flats are required to pay Dh.3000, while the tenants in four-bedrooms will have to shell out Dh.4000. Tenants in villas will have to pay more depending on the size of the villa, and the amount of water and electricity consumption.

These deposits are expected to bring in an additional Dh.500mn to the authority.

“The logic behind the collection of deposits from subscribers of SEWA services is to reduce the amount of the last bill in case a tenant fails to do so, and leaves the property without settling water and electricity bills before his departure,” said a source.

The system had been already introduced during mid-1980s when there were ample cases of people running away leaving their utility bills unsettled.

Tenants of commercial outlets too, are obliged to pay Dh.500 for shops or properties that lack water supply and Dh.1000 for shops that have water connections.

An extra amount has been levied on shops and commercial outlets in the form of deposits based on their average utility bills during the past 12 months, when their monthly bill is more than 50 percent of the deposit paid earlier to the order of the authority.

SEWA is yet to give a proper explanation regarding the reason behind the extra deposit when the customers have already paid it ten or fifteen years ago. However, the authority sources say that the deposit amounts paid by the subscribers will be returned to them at the time of leaving the property.

Posted on 16/4/2008

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