October 19, 2023
Management fees are an integral component of apartment and condominium living in Malaysia. These fees are remitted to property management companies in exchange for the management and maintenance of the property and its amenities. In this blog, we will delve into the nature of management fees, their coverage areas, and their significance within the Malaysian real estate sector.
To begin, management fees are compulsory charges paid by occupants of apartments and condominium units, directed towards property management companies responsible for managing the property. These fees are primarily employed for the upkeep of common areas, amenities, and the improvement of overall living conditions for residents. They may also underwrite salaries of employees, such as maintenance personnel or security officials, responsible for providing safety and maintenance services.
The quantum of fees is predicated on several factors including the age of the property, amenities provided, and service level delivered. But generally, fees are assessed based on the size of the unit, with larger units responsible for higher payment sums.
Whilst management fees may appear to impose an additional financial burden on the residents, their maintenance function is vital in preserving the quality of the property and its amenities. Without such fees, properties risk experiencing degradation, deterioration of amenities, and the consequent diminution of property values.
Moreover, management fees ensure that the property is safe for occupants through the provision of essential structural safety, maintenance, and security services. These services may include regular maintenance of fire safety equipment, cleaning of common areas, and upkeep of structural aspects of the building such as walls and roofs.
In summary, management fees are critical components of apartment and condominium living in Malaysia. They assure the upkeep, improvement, and safety of properties and their salient components and amenities. While they may seem like additional financial obligations, they are necessary for optimal living conditions and ensuring long-term property value.