By Property Hunter
clock 24-12-2021
hit 2,711
Getting Familiar With Management Fees

Maintenance fees also known as management fees cover day-to-day repairs and upkeep around a property. It covers elements of property management such as gardening, repairs to communal areas, security and cleanliness.

Operating large properties are not free as it comes with costs huge you might least expect. Though security may be the most obvious, funding for all those who keep your building looking good, as well as the management and administrative team that oversees them, are needed.

When we talk about maintenance, the total cost can depend on a whole host of factors.

If your apartment complex has a beautiful 15-acre garden with marble fountains, you can bet it will cost more to maintain than an apartment complex that only has underground parking.

Residential density is also an important factor in overall cost. Not only are low-density properties likely to be more luxurious and require more maintenance, but they also mean that fewer people share the costs and therefore have fewer economies of scale.

A property in a high-density development will have the overall costs shared between more residents, often resulting in a more favourable situation.

Keep in mind that the condition of the management can be a factor of cost. If you have an apartment management company that does not take care of maintenance, does not review contracts, or simply overcharges you, then your costs are probably higher than they should be.

As local councils managing public housing in Malaysia have begun to take this issue seriously, a property management company may take legal action against you if you fail or refuse to pay the maintenance fees. This can result in the company forcibly entering your home and seizing movable property to auction off before taking you to court.

During any general meeting of the management company, you may be stripped of your rights to vote. You may also be denied access to any facility on site.

The importance of paying management fees is very crucial, as it can leave a negative impact on your CTOS and CCRIS affecting future bank loan applications.

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