Beginner’s Guide on Maintenance Charges
and Strata Management Act 2013
GLOSSARY
Allocated Share Units
Share units assigned to each
parcel intended for subdivision
for strata title by the
developer’s licensed land
surveyor.
Allocated share units are
important determinant for
maintenance charge and voting
rights.
COB - Commissioner of
Buildings (Pesuruhjaya
Bangunan)
COB differs from place to place, a
complete list can be found here
JMB - Joint Management
Body
A body corporate with its own seal,
governed by COB.
Every strata owner is automatically
a member of JMB.
Collaboration between developer
and strata owners, forms during
first year after vacant possession,
but before strata title is issued.
JMC - Joint Management
Committee (AJK)
Committee members elected during
1st AGM as Trustee to carry duties
on behalf of JMB.
MC - Management
Corporation
Only formed once purchasers have
obtained their Strata Titles.
Existing JMB would be dissolved
and all the responsibilities
transferred over to the MC.
MC is comprised only of property
owners, without developer
anymore.
Copyrights © of AiResident. Disclaimer: This is a simple guide produced solely for informational purpose, and not to be taken as a legal nor professional advice.
What is Strata?
A strata property is a property with multi-level division (apartments, condominiums,
flats) or a horizontal subdivision (gated and guarded communities). It has common
property and area.
What is Strata Management Act 2013?
- Common area management & maintenance - by Law of Malaysia
Who sets the Amount of Maintenance Fee?
(A) Developer (Before formation of JMB)
Developer’s Allocated Director of Lands and
Licensed Share Mines for the state
Assign Approved
Land Units (Land Administrator
by
Surveyor for Federal Territory)
Thereafter, developer prepares the maintenance budget based on projected cost
and apportion charges to each individual units based on the Allocated Share Units.
(Section 9.2 & 9.3)
If not agreeable with the charges, purchaser can apply to COB for review of charges
set by developer, and COB shall then determine a just and reasonable sum (Section
12.7)
(B) JMB - reviews on yearly expenditures and decides on the charges
and sinking fund in proportion to allocated share units of each
parcel (Section 25)
Why is my Maintenance Fee so high?
Maintenance charge is in proportion to the allocated share units of each parcel.
Just to name a few big contributors to allocated share units: -
Factors Weightage on area of parcel
Common lift/escalator Estimate 15% higher weightage*
Air-conditioning at common area Estimate 30% higher weightage*
Location of accessory parcels ex: garden, 50% higher, for accessory parcel Inside
roof, store room, car park bays. a building, instead of Outside
* Gross indication of weightage percentage. This figure alone is not adequate to calculate Maintenance Charges.
Applicable only for Apartment, Small Office Home Office (SOHO), Office, Institution (College) complex;
Shop-houses, shop-apartments and shop-offices (Upper floor parcel only)
The larger your share unit, the more charges you pay.
If you are technical, you may find the formula under Section 8 – First Schedule. Be warned that it’s
complicated and meant for licensed surveyors to interpret.
 What if I don’t pay?

JMB can recover the sum owing in manner set out below (Section 34 & 35), and charge up to 10% p.a. Late
Payment Interest (LPI). It is a criminal offence to default in payment without reasonable excuses.

Step 1: Step 2: Step 3:

Notice of Demand Summons or Claims in Tribunal Attachment of Movable Property*

* JMB or building management can apply to COB to issue a warrant to confiscate the movable properties in the
defaulter’s unit. COB has the right to get police to assist in the matter.

JMB or developer needs to create an inventory and insurance for the confiscated items

What should I know as a Landlord? What can I do if I am tenant and I

want to avoid my furniture being
If one has reasons to contest or dispute the legality of the confiscated?
confiscation, one may, within 14 days, apply to the
magistrate’s court for an order of release of your property. Tenants may settle the arrears and deduct it
from their monthly rent, using the receipt given
One must settle the outstanding within 14 days in order by developer or JMB as proof
for the release of the confiscated properties.
Source: Section 35(5) & 35(6)

If the auction of the properties proceeds, any surplus or

unsold properties shall be returned. How can we Reduce the Cost of
Maintenance of a Strata Property?
Rice cookers and gas tanks were reported to be taken
away too. These are basic living items which should be
Based on our study on a condo-villa, the 3 main
left to residents.
cost of maintenance are Cleaning, Security,
Source: Opinion Column, The Star and administration staffs.
Total Revenue: RM1,800k
(95% revenue comes from
What can I do if I can’t pay up the arrears in Maintenance Service Fee)

full immediately? Total Expenses :

RM1,513k
Main items:-
Cleaning: RM217k
Salary: RM274k
A strata owner is naturally, a stakeholder of its community. Security Fees: RM358k
Management Fees: RM84k
Like it or not, it is imperative that we as a member of JMB, Utilities: RM376k
act as one, think as one, and do as one. Easy said than
done, but, if we wish to preserve the value of our property Most of the money are wasted on ineffective
or township, we have to start with ourselves. security and administrative paperwork. Most
building managements are still operating with
If one really can’t afford to pay the arrear in full, one old ways.
should speak with JMC. Agree upon an idea or plan. It is
better to start paying your current month dues, than to Any JMB can leverage on free technology like
stop completely. mobile or web applications for simple things like
booking facilities and pre-register for visitors.
References When cost of operation is lowered, quality of
1. http://www.federalgazette.agc.gov.my/outputaktap/20130208_ maintenance can be improved.
757_BI_AKTA%20757-BI.pdf
2. http://www.gmssolutions.com.my/blog/who-determines-the-
maintenance-charges-and-on-what-basis/ One might even get Exclusive Deals for service
3. https://asklegal.my/p/can-the-condo-management-in-malaysia- providers like renovation or maid by using a
really-enter-my-unit-and-take-my- residential management platform.
property?fb_comment_id=1629454850418988_162956105707
5034#f836513b8020a8

Copyrights © of AiResident. Disclaimer: This is a simple guide produced solely for informational purpose, and not to be taken as a legal nor professional advice.