PEPS: Unfair to have same maintenance rate for mixed developments

PETALING JAYA (Oct 17): Imposing a flat maintenance rate for mixed-use strata developments will result in inequity and complications, said the Association of Valuers, Property Managers, Estate Agents and Property Consultants in the Private Sector, Malaysia (PEPS).

“The crux of the matter lies in stratified property owners in mixed developments having to pay maintenance fee for facilities and amenities that they cannot enjoy,” it said in a statement today.

“This may result in dissatisfaction amongst the subsidiary proprietors and a general reluctance to pay maintenance fees as a form of protest,” it added.

A landmark court decision on Oct 4, 2019 held that the Joint management Body (JMB) is required to determine and fix only a single rate of maintenance charge in a mixed-use development.

The association said it supports having different rates of maintenance charges for mixed use strata development, sharing the same standpoint as the Malaysian Institute of Property and Facility Managers (MIPFM) and the National House Buyers Association of Malaysia (HBA).

The Court of Appeal’s ruling on Oct 4 implies that residents in high-rise buildings that do not have strata titles yet, where there are also offices and retail lots, will have to pay service or maintenance charges according to one fixed formula.

The ruling overturned a High Court decision that a JMB has the power under the Strata Management Act to determine or fix different rates of service or maintenance charges for different parcels in mixed-use developments.

Concerned that various problems may arise from the implementation of a flat rate maintenance fee for mixed-use properties, MIPFM earlier this week had also urged the Housing and Local Government Minister to react fast to the court ruling to provide clarity.