More and more Malaysians live in strata property, or in landed areas run by residents' associations, where a joint management body or management corporation collects fees and maintains common areas. Committees are volunteers with little training, and many buildings decline as fees fall short. Sean's guest, David Foo, co-founded a company providing management apps and accounting to about 500 neighbourhoods.
What makes some strata buildings well kept while others run down, and what can owners and committees do?
“it's like a marriage you need to manage”
David Foo, co-founder of Jaga Solution, a company that provides management software to residential communities, in conversation with Sean
A strata building is run like a company: owners are shareholders, the committee is the board and the building manager is the chief executive. Buildings decline when collection lags behind rising costs and committees try to save rather than maintain. Pay on time, attend AGMs, and expect the committee to set targets and use numbers.
Why
Collection can never exceed 100%
Guards, cleaners and managers cost more every year, but fees collected can't exceed what is billed. When committees settle for 85%, they end up cutting guards and cleaners until the building visibly declines.
Low fees at launch store up trouble
Developers set low maintenance fees to sell units while adding costly features such as fountains. After handover, committees must raise fees or remove features, and owners resist both.
Maintain, don't hoard
A management body is not meant to make a profit; money collected should be spent keeping the building in shape, with preventive maintenance rather than fixing things only once they break.
People make the difference
Price level matters less than residents who treat the place as home. One well-run building in Bangsar keeps spare tiles in the same colour to replace any that crack.
What to do
- Pay maintenance fees in full and on time.
- Attend AGMs, or at least read the accounts and proposals.
- If you serve on a committee, set targets for the building manager and supervise rather than do the work yourself.
- Compare your building's costs and staffing with similar buildings before cutting services.
- Budget for upkeep on an individual-title house too, since nobody else will fix the roof.
Editorial Note: Summarised from Sean Tan's full episode with David Foo. The answer is theirs, not Sean's; the quote is in their own words and the rest is our paraphrase. This is general information, not legal advice for your situation. Figures reflect the recording date, so check current rates and rules before acting on them.
LIVING TOGETHER IN A STRATAFIED COMMUNITY | DAVID FOO, CO-FOUNDER OF JAGASOLUTION
Sources & Verification Data
Summarised from the full English captions of this October 2021 episode of Sean's My First Property podcast. The views and quoted line are those of the guest, David Foo, whose company sells management software to residential communities; Sean says a cousin of his works there. Everything except the quote is paraphrased.
