Hi,

I can understand my condo is quite old and also the lifts break down quite frequently and many of the tenants have been complaining. So they have planned to change it. But now they are charging each unit according to the size of the unit to pay for the new lifts.
I'm just wondering, shouldn't they use the maintenance fee and slowly put an amount aside for the new lifts? I mean, that's what maintenance fees are for right? To maintain the building?
So I'm just wondering is it normal that a condo to charge each unit like this for reconstructing? And by the way, this has been done without any agreement or whatever. Just somehow one day the notice pops up and asking us to pay :/

Maintenance fees alone may not be enough to replace the lifts. Only way is to raise the maintenance fees.

Ya should be using our maintenance money.

U think lift few 10k ringgit??

Condo only short term viable

why not use sinking fund?

Sinking funds are not much actually when you have facilities and services to maintain each month. As more high rise residentials get older, we will see this problem appear in the coming years.

It is always a requirement for Condo to present the current money health during AGM. From there, resident can see what are the balance and resident have a feel of what are the thing can be done with the remaining sum.

Remember that maintenance not only contribute to fixing stuff, there is recurring monthly charges of electricity, guard, cleaner, gardener, pool cleaner, etc etc etc. Everything need to be shown during AGM where the money goes.

Asset replacement usually draws from the sinking fund, not maintenance. However for a smaller condo, or a low end/affordable condo, where you have low p/sf sinking contribution, it may not be enough to replace a major asset. This usually afflicts older buildings, and it is not rare to see management try to raise funds for a particular repair.

The Management financials are always presented during the AGM. Residents should be aware of the financial health.

I guess the paid monthly maintenance fees and sinking funds are are insufficient as lifts doesn't come cheap. Did your management committee call for an EGM before deciding to carry out the fund collection exercise? Just check with the property manager and ask for black and white to avoid misappropriation and abuse of funds. Good luck and all the best!

get the JMB to hold a special emergency meeting to vote for increase of maintenance fee.

demand that whatever can be cut, must be cut.
example: a security company with a much lower quote, swimming pool maintenance (see if can be done by in-house, rather than paying a hefty sum monthly)

if the lifts don't have card system, it's time to do one. Although expensive, in the long run more people will pay for maintenance if they want to get to their floors.


JMB has to be resourceful and creative, so in AGM get to know the residents and vote the right people in. They are not paid. If the current one has been befitting their cronies, it's time to bring them down.

good time to scrutinize your building management accounts and hear from 3rd party opinion.

I'm just asking because I'm just wondering if it is normal that they carry out such demand. I know that lifts don't come cheap and so on. But it would be appropriate to get opinions from tenants if they agree to do so only then only make the decision. Thank you for your answers. And of course I know maintenance money is for cleaners etc etc. I'm just getting opinions on how normally a condo get on these stuffs. Hehe. And recently they just installed smoke detectors in each unit which also costed a sum of money. Whatever it is, I still think it is better if they have asked our opinions to make a decision as not every one can just come out for example 5k on the spot when the notice is given.

If the one time money is big sum, i think the appropriate thing for the committee is to get the vote of agreement through AGM and not decide ownself.

Yes exactly.

Normally, it is done via EGM called, or AGM.

Once majority vote agree such a special sinking fund etc. then JMB/MC has right to bill the owners.

But many owners may not attend nor bother there was AGM/EGM generally which may create the miscommunication.

On the other hand, if there is no AGM/EGM called, then it is inappropriate.

current leasehold condo need to pay additional sinking fund for reno/upgrading building.
eg the owner pay by installment for 12 months might change to 36 months.

if new buyer enter to buy, who pay the additional sinking fund? pro-rate or
seller need to settle the full amount of additional sinking fund before consent letter?

thanks.

This post has been edited by straw: Apr 28 2018, 03:17 PM

As long as there is no outstanding until the property transfer date or effect of S&P date, then management will give the consent.
So it should be based on the invoice up to date that has been issued to the seller.