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Friday, November 7, 2014

Laws lacking bite

7 NOVEMBER 2014 @ 12:02 AM

THERE are currently no specific laws governing the property management industry in Malaysia.

Some of the better property management practices can be found in Japan, Hong Kong, Singapore, Australia and the United Kingdom.

In Malaysia, property management is governed primarily by the Strata Titles Act 1985.

Companies in this industry manage residential and non-residential real estate for property owners.

Their responsibilities relate to the overall operations of a property, including maintenance, rent collection, trash removal, security and some renovation activities.

Industry players may also help manage a property’s accounts, but operations related to the transaction of properties or real estate investments are not in cluded in this industry.

Pangsapuri Serina Bay George Town joint management body (JBM) chairman Marwan Syed Mohamed said most highrise property owners did not realise the importance of good property management until their building and common facilities started to deteriorate.

“It is a common problem that some

owners do not pay for their maintenance and service charges. It is normal to see at least 40 per cent defaulters who are owners of low-cost, low medium-cost and medium-cost apartments because most of them do not understand the basic concept of high-rise living.

“In fact, most of these high-rise apartments house former squatters who had to make way for development and they continue with their ‘free-for-all’ lifestyle and do not want to pay the monthly maintenance charges.

“For the high-end properties, the percentage of defaulters is lower at about 10 per cent, not because they cannot afford to pay but because they just do not want to pay as the laws governing property management here are toothless.

“When defaulters don’t pay, they derail the monthly budget for operating expenses (management fund) and capital expenses (sinking fund).”

Marwan, who is chief caretaker at Texchem Holdings Sdn Bhd, said there should be stricter enforcement to penalise defaulters.

The government should provide free legal service for JMB or the management to recover outstanding dues and consider blacklisting hardcore defaulters under the Central Credit Reference Information System, just like what they plan to do for the National Higher Education Fund Corporation defaulters starting next year, he said.

“For example, if you don’t pay the utility bills for landed properties, services would be interrupted. If you don’t pay your taxes, you cannot go overseas. If you don’t pay your mortgage timely, the banks will blacklist you.

“But if you don’t pay the monthly maintenance charges, what measures are there, other than the arduous legal process, to recover the dues? Apparently, there is none. In the worst-case scenario, the JMB may have to wait for 15 to 20 years to recover the outstanding amount.

“The property management industry needs a strong political will to come down hard on defaulters. It is ironic that many defaulting owners even let out their units and enjoy the rental. Instead of so many laws or guidelines on recovery, let’s see some action, and that is enforcement.”

Marwan suggested that after the issuance of the certificate of fitness and occupancy, a developer should continue to co-manage the high-rise property with a neutral party, which is a licensed registered property manager, and the owners, at least for the first 36 months or during the defects liability period (DLP).

This is to avoid any conflict of interest while giving time to the owners to establish a strong JMB or management corporation.

After the expiry of the DLP, the developer must hand over the management and maintenance of the high-rise property with a healthy account to the residents, who are the owners. It is then the duty of the owners to appoint a licensed registered property manager to continue maintaining the high-rise property, he added.

“Having chaired the JMB at Pangsapuri Serina Bay since January, I can vouch that every month, we struggle to pay the essential bills, quit rent, insurance and others. We owe almost every service provider money because of recalcitrant defaulters. Some service providers have even initiated legal action against us.

“The point is, many residents have the resources to pay the monthly maintenance charges, and in our case, it is RM110, including RM10 for sinking fund, but they choose not to.

“If we take tough legal action against them, the recalcitrant defaulters may cause us trouble.

“To manage the situation, we give discounts for advanced payments

although we can’t really afford to. This gesture does help the management meet its monthly expenses for essential services,” he said.


Price of living high

BY SHAREN - 7 NOVEMBER 2014 @ 12:31 AM

OWNERS’ RESPONSIBILITY: It is important to pay maintenance and sinking fund charges

SHOULD owners of highrise apartments be taken to court for defaulting on their monthly maintenance and sinking fund charges?

Living in a high-rise building has its advantages, such as better view and zero-noise pollution.

Many innovative developers like Tropicana Corp Bhd, Mah Sing Group Bhd, UEM Sunrise Bhd, I-Berhad, SP Setia Bhd, Bandar Raya Development Bhd and Bukit Kiara Properties Sdn Bhd have become the choice for buyers when it comes to luxurious homes.

Depending on the developers, there are many amenities to be enjoyed.

For example, the Tropicana City Tropics serviced apartments in Petaling Jaya offer a gymnasium, 40m lap pool, beach pool, wading pool, tennis and squash courts, sauna, steam room, function room, laundromat, housekeeping facilities and concierge services.

Another important element for high-rise developments is security. Most developers offer three-tier security that includes keycard protocols, closed-circuit television cameras and vehicle access card system, in addition to 24-hour physical security.

Buyers don’t mind paying for such properties, which can range from RM400,000 to more than RM1.5 million each.

Even apartments within the affordable range of RM250,000 to RM400,000 offer facilities such as swimming pools, tennis courts and security.

While owning an apartment with all the amenities can be a pleasure, some owners have refused to pay the maintenance and sinking fund charges.

When there is not enough money in the pot, the management of the building will have a tough time maintaining the properties. In the long run, the apartment building will start to deteriorate.

So, if home owners default on payments and the buildings and their surroundings are affected, the developers should not be blamed.

Many may have forgotten the terms in the sales and purchase agreement and deed of mutual covenants (DMC) of a property in a high-rise residential block, where it is clearly stated that the monthly maintenance and sinking fund charges must be paid.

The charges are for the joint management body (JMB) to provide services and maintain the property. The JMB is made up of the developer and/ or developer representative and purchasers.

If owners do not pay, the JMB may not be able to even provide the basic services, such as maintaining the lifts or drainage system.

Maintenance fees are collected for repair and maintenance of common areas, carpark, footpaths, roads, windows, gutters, drains, lifts, and electricity and lighting for common areas, landscape and gardening, pest control, security (internal locks and doors, intercoms, external doors and gates), safety (smoke alarms, fire extinguishers, health and safety inspections) and refuse collection and recycling services, as well as professional charges (building insurance public liability insurance, etc) and JMB’s legal/auditor fees.

A sinking fund is basically money put aside yearly to cover the cost of major long-term expenses, such as lift or roof replacement or repair. It can be used for refurbishment and improvement of the building.

Paying the maintenance and sinking fund charges is a collective obligation for the common good of all residents in any residential building.

Despite that, some owners refuse to pay the monthly maintenance charges, knowing that shared services cannot be interrupted and there is a lengthy legal process to recover the monies due.

It is a legal requirement for owners of a high-rise property to pay their dues under the Strata Management Act 2013.

The law prescribes a specific recovery process in the event an owner is in default and fails to meet this requirement. An owner is deemed to be in default if the monthly maintenance and sinking fund charges are outstanding for more than 60 days.

As a home owner, there is no way one can escape from paying. If you do not pay, the JMB can take legal action against you under the DMC.

This may include posting the information of the defaulting property owners on the notice board, issuing reminders and warning letters to the parties concerned, imposing interest and/or collection charges on the arrears and taking legal action through the Small Claims Tribunal.

The JMB can also claim outstanding dues from owners when they sell their properties. It can get a court order for money to be deducted from the sale proceeds.

In the end, the owner will still have to pay his dues, plus fines and late payment charges.

Malaysia needs a regulatory body to spearhead transformation in this area so that home owners who pay their monthly maintenance and sinking fund charges do not suffer and that developers are not blamed for maintenance or structural problems.

A regulatory body can lead in the management and maintenance of high-rise projects and take stern action against defaulters.

Monday, September 8, 2014

Lift blok 47 rosak untuk 14 jam

Saya harap pemilik yang tidak membayar fi pengurusan supaya menjelaskan tunggakan bayaran mereka. Janganlah menjadi manusia yang tidak bertanggungjawab.

Manakah keadilan untuk pemilik lain yang tidak pernah culas membayar tetapi terpaksa menderita atas sikap tidak bertanggungjawab pemilik yang tidak membayar fi pengurusan?

Apakah anda tidak mempunyai sifat malu? Jika inilah sikap anda, sila berhenti membiak....!

Yang benar,

Pemilik yg dianiaya

Thursday, August 7, 2014

Covered Parking nearby Block 47

Parking lot available for rent .
Monthly fees of RM 100.
Deposit : Rm 350 (2+1+ Access Card (RM 50)
Contact 014-3345427: whatsapp or call (Ms Yanthi) for enquiries/rent.