Tag Archive: maintenance fee charges


Strata Act seizures

Come out with maintenance fees or out goes your furniture, TV, rice cookers . . .

Hardcore defaulters on condo or apartment maintenance payments may have their units raided and the movable items inside – such as TVs, appliances and smartphones – seized by the authorities. The Strata Management Act 2013 gives more power to building management bodies to take action on errant owners, with the backing of local councils and the Urban Wellbeing, Housing and Local Government Ministry. And the seizures have begun! PETALING JAYA:

Knock, knock, who’s there?

Officers from the Kajang Municipal Council’s Commissioner of Buildings unit and Urban Wellbeing, Housing and Local Government Ministry seizing items from a defaulter during a raid at an apartment in Bangi. Confiscated

The answer could be the authorities, here to seize your belongings if you are a condo owner who defaulted on maintenance fees.
The Government is intensifying enforcement efforts against condominium and apartment owners who fail to pay up. And it means business.
In fact, the seizures have already begun. For the first time under the Strata Management Act 2013, five units at an apartment in Bangi, Selangor, were raided in May because of their owners’ failure to settle fees totalling thousands of ringgit.

Movable items like flat­screen TVs, smartphones and even appliances like rice cookers and gas tanks were seized by the apartment’s management body, the Kajang Municipal Council’s Commissioner of Buildings (COB) unit, and the Urban Wellbeing, Housing and Local Government Ministry.
The items were later auctioned off to settle outstanding fees or reclaimed by the owners who finally paid up.
Such action will be stepped up to get more defaulters to toe the line.

“Similar enforcement efforts, including seizures, will be extended to various locations nationwide,” the ministry’s urban service division senior principal assistant secretary Mohd Syaifulrizal Mohd Bakar told The Star.

In fact, five other raids were conducted so far this year by the ministry, together with the respective local councils’ COB.
Mohd Syaifulrizal said there was no minimum amount of outstanding fees needed for such seizures to be conducted.
“As long as the joint management body (JMB) or management corporation (MC) of a condo or apartment has served a written notice to demand payment from the unit owner, and it is unpaid after 14 days, enforcement can take place.

“The JMB or MC can serve a warrant to the defaulters with the help of the COB and ministry,” he said.
Aside from seizing items, other actions that the JMB and MC can take include filing a summons in court against defaulters and filing a claim in the Strata Management Tribunal formed under the Act.

The Act, which came into effect in July 2015, gives more bite to management bodies in taking action against errant unit owners.
Calling it more comprehensive than the repealed Building and Common Property (Maintenance and Management) Act, Mohd Syaifulrizal said the new law had also led to a slight improvement in property management standards.

“The ministry wants more JMBs and MCs to practise better quality management and maintenance to foster a harmonious and healthy living community,” Mohd Syaifulrizal said.

Source: The Star, 5 September 2017

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DBKL to sponsor repair costs

Offer to foot 90% of outlay open to all government and privately owned flats

KUALA Lumpur City Hall (DBKL) has offered to sponsor 90% of the repair costs of problematic residential high-rises, both Government and private-owned, in Kuala Lumpur.

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DBKL will sponsor up to 90% of repair costs for both PPA and PPR as well as privately owned high-rises, provided they put forward the balance of 10%

Datuk Seri Tengku Adnan Tengku Mansor said all 74 of the Government’s Public Housing (PPA) and People’s Housing Project (PPR), as well as high-rises that were privately operated, could take up the offer – provided they put in the balance of 10%.

“There are a lot of complaints from residents living in high-rise developments on the management of the building.

“Most of the complaints are about lifts, wiring and plumbing,” he said.

Often, the joint management bodies or management committees tasked with managing these buildings fail to resolve the issues for various reasons.

“So, we have decided to help – provided the residents are willing to contribute,” Tengku Adnan said.

“We can also give their building a new coat of paint to make it look good.

“Those interested can make their application via the Federal Territories Residents Representative Council,” he said at the Kenduri 1Wilayah Persekutuan for the Batu constituency at

Dewan Perdana Bandar Baru Sentul on Wednesday.

Tengku Adnan said DBKL had upgraded the lifts in Sri Kelantan Flats and PPR Taman Wahyu, and was in the process of doing the same for PPR Taman Beringin and PPR Intan Baiduri.

“We know the problems and are constantly trying to find solutions.

“Regarding the parking problems in the city, as well as in the residential areas, we are also trying to identify suitable areas to build multi-storey car park complexes.

“There are also complaints on lack of security for residents staying in government housing, as anyone can come and go without restriction.

“We are open to the idea of having access cards, provided all the residents agree to the initiative,” he said, adding that events like the Kenduri 1Wilayah Persekutuan enabled the authorities to get closer to the people and to hear their problems.

Tengku Adnan also said that the chicken slaughterhouse project at the Selayang daily market would go ahead despite protests by some residents.

He stressed that it was to centralise and regulate slaughtering activities in the market.

“Not all the chickens sold at the market are slaughtered in the halal way.

“So, with the modern, centralised slaughterhouse, Muslims can be sure that chickens bought from the market are indeed halal,” he said.

Tengku Adnan also advised petty food traders operating in inappropriate places to take up the grants given out by various government agencies, such as DBKL, Tekun Nasional Financing Scheme and Mara, and upgrade to operating from food trucks.

Source: The Star 24 February 2017

Notice is hereby given that 5th Annual General Meeting of Danau Murni Management Corporation will be held at the Multipurpose Hall, Block A, Danau Murni Condominium, Jalan 109F Taman Danau Desa, Off Jalan Klang Lama, 58100 Kuala Lumpur on Saturday, 15th October 2016 @ 10:00 am.Notice-of-5th-AGM-2016

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Only 74 out of 7,325 high-rise residential properties in Peninsular Malaysia earned the top five-star ranking in an evaluation of their property management standards. And more than half are below par, earning only one and two stars.

Future generations will likely live in stratified buildings, so people should try to set a proper precedent for them. Mohammad Ridzwan Abidin

IT is one thing to be a developed state by 2020. But it is another thing entirely to have a developed state of mind – and Malaysians have a long way to go to achieve that.

Take, for instance, condominium and apartment-living.

Some of these properties may come with top notch facilities but when it comes to managing their upkeep, there is much to be desired.

Or so says the latest findings on the quality of managing stratified properties from a survey by the Urban Wellbeing, Housing and Local Government Ministry.

Every year, the ministry conducts its Strata Scheme Management Quality Evaluation, or “Star Rating”, which ranks the standards of joint management bodies (JMBs) or management corporations (MCs) of apartments and condominiums.

These bodies are ranked based on how they do in seven areas (see graphic below for details); five stars is the highest rank.

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But, as it turns out, more than half – or 69% – of condominiums and apartments nationwide ranked “below par”, scoring only one and two stars in 2015. In 2014, a slightly smaller percentage, 65%, were ranked below par.

Only 1% – or 74 – out of 7,325 strata development schemes surveyed earned five stars in the 2015 ratings, made available to Sunday Star.

If such a trend continues, future residents will inherit poor standards of living amidst modern facilities.

Currently, almost six million Malaysians out of 20 million city folk are living in stratified buildings like apartments and condominiums.

“But this number is expected to rise in future as the country progresses and becomes more urbanised,” says Mohammad Ridzwan Abidin, Urban Wellbeing, Housing and Local Government Ministry urban service division under-secretary.

He says one of the major problems that condo dwellers continue to face is the refusal of other residents to pay maintenance fees. Other problems are building defects and matters involving enforcement.

“For now, about 70% of residents are at a level where they are merely aware of what needs to be done in managing their property. They are not yet at a level to appreciate the benefits of cooperating with each other and creating a better living culture,” he says.

Mohamad Ridzwan says there is a need to change the mindset of people to foster more civic-minded communities in high-rise buildings.

“Future generations will likely live in stratified buildings, so people should try to set a proper precedent for them,” he says.

He points out that there are also more people moving out of landed properties and into high-rise buildings.

“This group of people will have to learn to adapt to the culture of living in stratified buildings as it is different from living in houses.

“They will need to be more inclusive of and cooperative with their neighbours,” he says, adding that they would also have to learn to be more considerate when it comes to using shared facilities.

Stressing that it all boils down to the mindset of residents, Mohamad Ridzwan highlights the case of Rumah Pangsa Orkid, a low-cost flats property in Ulu Tiram, Johor, which made it into the Malaysia Book Of Records in 2014 for obtaining the ISO 9001:2008 standard for exemplary management.

“Until today, they remain the only low cost flat development to have achieved this,” he says, adding that there are yet to be any high-end condominiums accorded the same standard.

Mohamad Ridzwan says the ministry will continue to actively educate dwellers on proper management of their properties.

“We will embark on more education programmes to promote better practices through advertisements in the mass media,” he says.

On the Strata Management Tribunals to hear disputes, Mohamad Ridzwan says four such tribunals have been successfully set up to cover different zones in Peninsular Malaysia.

“Since their formation the tribunals have heard about 200 cases per month,” he says.

In March, Sunday Star reported that residents who do not pay maintenance fees and other charges were set to face the music, with the Government forming a team to strengthen the enforcement of the Strata Management Act.

The Act also enables residents to take their disputes to a Strata Management Tribunal to settle matters.

Building Managers Association of Malaysia committee member Richard Chan agrees that the “biggest and most critical” problem is the collection of fees, saying that it is rare that JMBs or MCs are able to collect payment from 80% of residents.

“It is more common for the collection rate to be at 40% or 50%,” he says.

Chan laments that petty excuses are often given by residents to defend their refusal to pay up.

“Some refuse because they don’t use the facilities.

“When people ask why they don’t want to pay, they simply say they don’t swim or play tennis,” he shares.

Chan adds that many unit owners live elsewhere or are based overseas and so are reluctant to pay.

“Some are not satisfied with services like garbage collection and defy orders to settle the fees,” he says.

He urges future condo owners to refrain from buying properties that come with all sorts of facilities if they are unwilling to pay up.

“Sometimes, it isn’t about whether they can afford the fees or service charges. It is about their attitude and mentality.

“Some don’t pay simply because their neighbours are not paying and are getting away with it,” Chan says, adding that such attitudes have resulted in some apartments owing up to RM200,000 in water and electricity bills.

The lack of money in the sinking fund also hinders JMBs and MCs from paying for major works like repairing lifts.

“It becomes a vicious cycle. Because people are not satisfied with the upkeep of the place, they do not pay the fees.

“But when they do not pay, there isn’t enough funds for upkeep,” he says.

Also, developers must do their part by informing all potential property buyers of the exact amount of all service charges, says Chan.

“Developers will try to promote their projects for more sales but they should also inform buyers of the fees they are expected to pay.

“Owners should also consider that, after a year, the fees may go up as warranty periods for equipment expire,” he says.

Federation of Malaysian Consumers Associations secretary-general Datuk Paul Selvaraj says many complaints against MCs have been made to the federation.

“High-end condominiums are generally better managed. We received a lot of complaints from people in medium cost apartments,” he says.

He says that consumers and the building management should both be more responsible.

“Consumers need to settle payments that they have agreed to. But they should also be receiving good service in return, like efficient rubbish collection,” he says.

Selvaraj highlights that the only way forward is for management bodies and residents to have a good working relationship.

“People should understand that managing their building is a collective responsibility.

“More dialogues should be held on how to improve the community to ensure good quality of life wherever we live,” he adds.

Room for improvement

THERE are mixed views, but apartment and condominium residents generally agree that there is room for improvement in managing their shared living spaces.

Long standing issues continue to plague condo dwellers, such as poor cleanliness, wrongful use of facilities, low collection of maintenance fees and security problems.

Some believe in boils down to a lack of cooperation among residents while others have taken the developers and the management bodies to task.

A condominium resident in Petaling Jaya, who wishes to be known only as Aaron, says the joint management body (JMB) in his building finds it tough to make changes because of the attitude of his neighbours.

He laments that some residents do not dispose of rubbish properly despite signs being put up to advise them.

“Even if the bin is not full, some just toss their trash on the floor.

“This is the typical ugly Malaysian mindset – since they have already paid to keep the place clean, why should they bother so much?” says the 32-year-old engineer.

Aaron also notes that lifts are sometimes vandalised with graffiti.

“The JMB is trying hard to get things right but it’s the people living here who need to cooperate to ensure it works,” he says, adding that many of the units have been bought up by property investors, and such units are left vacant since the owners do not live in them.

Because of this, they do not pay maintenance fees, causing Aaron’s building to be poorly maintained.

“Some rent out their properties to tenants, who do not care and are not bothered about paying for the shared facilities like the swimming pool,” Aaron says.

While his JMB blocks the access cards of residents who refused to pay up to encourage more payment, the move isn’t effective enough.

Julian Ding, who used to live in an apartment in Ara Damansara, Petaling Jaya, says some residents who smoke can be inconsiderate by throwing their cigarette butts out of the window, which eventually end up on balconies and in common areas.

He also recalls that some residents do not use shared amenities properly – he’s seen people dragging chairs into the swimming pool and leaving them there.

“There were also some security problems. Once, an unknown man had followed a female resident into the compound,” says the 31-yearold father of a baby girl.

Ding now lives in a condominium in Bangsar, Kuala Lumpur, and says his current neighbours are better, with only a fraction not up-to-date with maintenance fees.

“Facilities are fixed if complaints are made and the area is generally clean. But I suppose this is because it is a low density condominium with only 70 units,” he says.

Teacher R. Nithia, a resident in Penang, says the management corporation (MC) in her apartment is problematic because the new post bearers are continuously bickering with the former MC members.

“While they are feuding, the residents are caught in between,” the 40-year-old complains.

She says there are security issues that need to be addressed, such as cars being scratched and vandalised despite the apartment having guards on duty.

“Our access cards to the car park have also been duplicated by non-residents.

“But while we have tried to raise this to the MC, they seem to be more concerned in undoing what the former MC members have done, like changing contractors and the security company,” Nithia says.

Meanwhile, there are some who feel the project developer, who is usually part of the JMB, should do more, especially if there are complaints about the building.

An IT manager who wants to be known only as Johan says the developer of his condominium in Subang Jaya, Selangor, had initially led the JMB but was slow to act on complaints about the workmanship of the building.

“There were many issues, including tiles popping up after only three years,” says the 32-year-old.

He says residents were also promised that their units would be equipped with broadband Internet but the developer has failed to provide such a service.

The JMB, led by the developer, also overpaid for certain services like security when they paid the salaries for eight guards but only six were actually doing the job.

“Last month, the residents took over the management as an MC, and we hope things will improve,” he says, adding that the residents plan to bring up their issues with the developer with the Strata Management Tribunal.

Source: The Star 25 September 2016

GST EXEMPTION DM

Pandangan 1 : Jabatan Kastam Diraja Malaysia (JKDM)

Assalamualaikum w.b.t. dan Salam Sejahtera,

Untuk makluman pihak tuan, baru-baru ini pihak Ibu Pejabat JKDM Putrajaya ada mengeluarkan surat pekeliling kepada kami (JKDM WPKL) yang menyebut seperti berikut :

“3. Dengan mengambilkira perbezaan impak yang akan berlaku antara layanan CBP ke atas pembekalan perkhidmatan ini kepada pelbagai jenis kediaman di bawah hakmilik strata oleh badan pengurusan bersama dan perbadanan pengurusan, pihak Bahagian GST Ibu Pejabat ingin memaklumkan bahawa Menteri Kewangan telah bersetuju melalui surat bernombor rujukan 0.3865/356(SJ.4)(Jld.14)(SK.12)(21) bertarikh 5 Januari 2015 seperti di Lampiran A untuk mengecualikan pembekalan perkhidmatan tersebut untuk SEMUA jenis kediaman di bawah hakmilik strata oleh badan pengurusan bersama dan perbadanan pengurusan. Pindaan yang sewajarnya akan dibuat ke atas Perenggan 20, Jadual Kedua [subperenggan 2(1)], Perintah Cukai Barang dan Perkhidmatan (Pembekalan Dikecualikan) 2014. Walau bagaimanapun,pengecualian ini tidak terpakai untuk badan pengurusan bersama dan perbadanan pengurusan yang membekalkan perkhidmatan kepada bangunan komersial atau perniagaan.”

 

Pandangan 2 : Jawapan kepada 106 soalan (Jawapan ini berkaitan Jabatan Kastam Diraja Malaysia sahaja)

68. Adakah kos penyelenggaraan untuk flat kos rendah dan apartment dikecualikan GST?
Kos penyelengaraan untuk semua perumahan di bawah hakmilik strata adalah dikecualikan dari GST.

Jawapan keseluruhan 106 soalan boleh didapati di sini  Jawapan kepada 106 Soalan

A final reminder was sent to defaulters at Danau Murni Condominium to settle their entire outstanding fees as at 5 March 2015. Please settle your outstanding within one month.

We would like to encourage everyone to use online transfer to pay for maintenance, sinking fund, insurance, quit rent and water charges using our account at CIMB Bank – 14210000434101 – PERBADANAN PENGURUSAN KONDOMINIUM DANAU MURNI

Thank you for your co-operation.
Notice defaulters Danau Murni 2015

Maintenance fees may go up over 10% with GST, residents warned

Owners of high-rise dwellings may have to pay up to 10% more in maintenance charges from April although such fees have been exempted from the Goods and Services Tax (GST). Building managers are blaming the impending rise on the shortfalls in collection caused by payment defaulters and the 6% in GST that they still have to pay to service providers like electricians and plumbers. PETALING JAYA: Owners of condominiums, apartments and flats have been told to brace themselves for highermaintenance charges from April although suchfees have been exempted from the Goods and Services Tax (GST).

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Building Managers Association of Malaysia ( BMAM) president Tan Sri Eddy Chen warned that the rise could be more than 10% to meet the anticipated higher operating costs.

He said although GST would not be imposed onmaintenance fees, the management bodies still had to pay GST when they called service contractors like electricians to fix problems.

Chen said maintenance fees should be set higher than 6% if the non-payment by defaulters were taken into account.

“In the case of low and medium cost flats, about 40% of the owners do not pay their monthlymaintenance fees of between RM35 and RM70 monthly.

“So, even if only 50% pay, the maintenancefees will have to be increased by 12% to cover the shortfall and the 6% in GST to be paid to service providers.”

BMAM is an umbrella body comprising 25 stakeholder organisations representing management corporations (MCs), joint management bodies (JMBs), chambers of commerce, developers, engineers, architects, shopping and high-rise complex managers and managing agents.

BMAM deputy president Tan Sri Teo Chiang Kok said there were currently 1.8 million strata properties in the country, out of which 90% are residential.

He said the association was concerned that more low and medium cost flat owners might default when the GST kicked in.

“We have reminded all JMBs and MCs to call for open tenders and only select those offering the best service at the lowest cost (to keep maintenancefees low),” he said, adding that owners might reject a proposed fee rise during the JMB or MC general meeting but “they cannot escape the GST”.

Association of Valuers, Property Managers, Estate Agents and Property Consultants in the Private Sector Malaysia (PEPS) and National House Buyers Association (HBA) adviser Wong Kok Soo said 99% of the maintenance charges collected by JMBs and MCs were channelled to the service providers, contractors, suppliers and utilities, which were all subject to 6% GST.

“They will be compelled to increase theirmaintenance charges to pay the GST input tax,” he said.

He said that in January, a petition was sent to the Finance Ministry by the HBA, PEPS, the Royal Institution of Surveyors Malaysia (RISM) and Malaysian Institute of Professional Property Managers (MIPPM) to exempt the maintenance charges of all stratified properties for residential usage from GST.

However, he said only goods and services under the zero-rated supply list would be able to get a GST input tax refund from the Customs Department.

“The HBA, PEPS, RISM and MIPPM had a discussion with the Finance Ministry, Federal Treasury and Royal Malaysian Customs representatives recently and will continue to engage with the authorities until all major problems regarding GST in the stratified development areas are resolved,” he said.

BMAM treasurer Prof S. Venkateswaran said exemption was preferable to zero-rated status.

“As it stands, JMBs and MCs with revenues less than RM500,000 a year are automatically exempted from GST. Most low and medium cost flat JMBs and MCs come under this category.

“Assuming that JMBs and MCs with revenues exceeding RM500,000 a year are granted zero-rated GST status, the move would still result in some JMBs and MCs facing serious financial problems as being zero-rated would require the JMBs and MCs to have GST software and hardware in place.

“This will cost a minimum of RM4,000 to RM5,000 per month, including cost of staff,” he said.

He said overall, it was less expensive if all JMBs and MCs were granted a blanket exemption from GST as they would be able to save on administrative costs and procedural hassles when filing claims for GST refunds.

“No matter which way it goes, GST will invariably bring an up-front increase in costs for all owners, suppliers and service providers,” he said.

Untuk makluman, kadar Maintenance Charges dan Sinking Fund dinaikkan mulai 1 Mac 2014. Kadar baru ialah seperti berikut:

Maintenance Charge RM142.80

Sinking Fund RM14.30

Manakala bayaran tambahan seperti insuran dan cukai tanah bagi tahun 2014 ialah:

Insurance RM89.25

Quit Rent RM13.00

Bayaran boleh dibuat melalui Online Interbank Transfer atau bank-in terus ke akaun:

CIMB Bank Account – 14210000434101 – PERBADANAN PENGURUSAN KONDOMINIUM DANAU MURNI

Sila faks (03-7987 7806) atau emel kepada danau.murni@hotmail.com bukti pembayaran dengan menulis rujukan seperti nama dan nombor unit.

Kenaikan Maintenance Charges dan Sinking Fund telah dipersetujui dalam Mesyuarat Agung Tahunan dan notis mengenai kenaikan telah diletakkan di papan kenyataan kondo pada 6 Januari 2014.

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Kehadiran untuk sesi bertemu penduduk pada 25 Januari 2014 ialah hanya dua orang pemilik seperti dalam gambar di bawah. Dua staf dari Jova Building Services Sdn Bhd (sedang berdiri) menerangkan tentang isu kenaikan tersebut. Sementara itu, En Simon (Jova Building Services Sdn Bhd) kelihatan duduk sambil memegang kertas menerangkan sesuatu kepada salah seorang pemilik yang hadir. 

DM Enquiry 25 Jan 2014

We would like to encourage everyone to use Online Banking to pay for maintenance, sinking fund, insurance, quit rent and water charges. Payment can be made by Online Fund Transfer or using Bank In Slip.

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CIMB Bank Account – 86-0010915-5 – PERBADANAN PENGURUSAN KONDOMINIUM DANAU MURNI

When paying by online transaction, please write your unit number as A0101 or A1801 for example. Use short form such as below:

MS- maintenance charges and sinking fund (per month RM142.80+RM14.30)

WC – water charges

IC – insurance charges

QR – quit rent

PC – parking charges

Please write like this –A0101WC14MS157.10PC300

(unit A-01-01, water charges RM14.00, Maintenance charges RM142.80 + Sinking Fund RM14.30 and Parking charges RM300.00)

Your online payment transaction should be simplified as it can help us to identify your payment.

Please send us copies of your transaction by mail, fax (03-7987 7806) or email to ppdmkl@gmail.com

Alternatively, you can pay by cash or cheque during office hours. Your cheque should be crossed and made payable to:

PERBADANAN PENGURUSAN KONDOMINIUM DANAU MURNI

Kindly write your name and unit number at the back of the cheque. After office hour, cheque can be dropped into Cheque Deposit Box at the Management Office.

Thank you.

The Management