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KUALA LUMPUR: There must be a mechanism to ensure property developers reveal the actual service charges imposed on unit owners of stratified projects on the outset, said the International Real Estate Federation Malaysia Chapter (FIABCI Malaysia) deputy president Tengku Ab Aziz Tengku Mahmud.
Ab Aziz, who is also the CEO of PNB Merdeka Ventures Sdn Bhd said property developers who were not upfront about actual service charges is contributing to property management fee collection woes.
He cited instances where developers offered steeply discounted maintenance fees or even waived them for a few years during the launch of their stratified residential projects but neglected to inform owners of the actual charges.
“If they want to give a lower fee at the launch, fine, it is their prerogative. But they should make sure that the buyers know... otherwise it will be a matter of dispute,” he said, adding the actual fees could be stated in the form of a disclaimer.
He was speaking after the launch of the Property Management – Time Bomb? seminar organised by FIABCI Malaysia and the Malaysia Association for Shopping and Highrise Complex Management (PPK Malaysia).
Another problem in collecting property management fees is the lack of enforcement by joint management bodies (JMBs) and by the Commissioner of Buildings, said Ab Aziz.
PPK advisor and RCMC Sdn Bhd director Richard Chan said the initial low fees or temporary waived fees were either subsidised by the developers or included in the property price.
“Facilities cost money to maintain. So, where is the money coming from? Is your service charge sufficient?” he asked.
Past FIABCI Malaysia president Datuk Teo Chiang Kok said laws such as the Building and Common Property (Management and Maintenance) Act 2007 which require JMBs to be formed in a short time help to educate building owners on the actual cost of running as well as the building’s structure and defects.
Meanwhile, FIABCI Asia-Pacific Regional Secretariat chairman and Bukit Kiara Properties Sdn Bhd group chairman Datuk Alan Tong said property management fee payment is the responsibility of the unit owner.
Also present at the press conference was FIABCI Malaysia president Yeow Thit Sang.
This article appeared on the Property page, The Edge Financial Daily, December 10, 2010.
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