Need for professional property management
25/11/2000 NST
Condominium dweller C.H. Tan thought that when he purchased a unit
in a project in Petaling Jaya, he would enjoy all the facilities and
conveniences that a condo-lifestyle purports to offer.
However, a year
after moving into his unit, his dreams of a prestigious
condo-lifestyle came crashing to the ground.
The equipment in
the gym had ceased to function, the water in the swimming pool was
murky and to top it all, his condo was burgled.
Tan said several
of his friends have also faced similar problems in their condo
developments.
He attributes
their woes to poor property management methods being practised
today. Indeed, the issue of poor management has become of such
concern among property professionals and consumers that it has been
discussed in several property seminars and repeatedly highlighted in
the media over the past several months.
Dass Mohamad
Chartwell Brooke Hillier Parker Sdn Bhd executive chairman Ravindra
Dass attributes the rising concern to the increasing number of
stratified units being built.
"More Malaysians
are moving into stratified units, especially in urban centres due to
limited land availability, and thus there is greater awareness of
the need for these properties to be well-managed.
"The concern is
not so much for the upmarket condominiums, but with low and
medium-cost projects, where the quality of life may be largely
neglected by developers and property managers." He said the need for
professional property management would get more critical as more
high-rise buildings come up.
Raine and Horne
International Zaki + Partners director Michael Geh said: "Property
management has historically been underrated and is often associated
with mundane maintenance work and rent collection.
"However, with the
increasing development of strata titled property and legislation to
govern the proper management of such property, there has been an
increasing demand for professional property management skills.
"Today, a property
manager is expected to provide a whole range of services that
include devising and implementing letting strategies, monitoring tax
implications, recognising opportunities for development potential
and exploring the merger of interests with adjacent properties."
In a paper on
Malaysian Property Management into the New Millenium, Geh outlined
the current issues affecting property management in the country.
They include:
• owners not paying maintenance fee, leading to an accumulation of
large sums owing to property managers;
• lack of transparency, adequate laws and enforcement on the part of
property developers, and managers in the administration of funds,
especially sinking funds;
• lack of control and guidelines on who should be qualified to be
property managers; and delayed submission of application for strata
titles.
"There should be clear guidelines and enforcement on owners who
default on payment of maintenance.
"In Singapore, for
example, if a unit owner defaults on maintenance fee, the property
manager can obtain a court order to seal the property and the owner
can be fined.
"A similar law
should be introduced in Malaysia," Geh said.
Dass concurred,
adding that "we have laws with no teeth, so we cannot ensure that
owners will pay their fees and those who collect these fees manage
them well.
"Proper
legislation should be introduced and enforced to ensure both
property owners and managers play their part to ensure good
maintenance of strata properties," he added.
Geh said in term
of the administration of funds, the Government should introduce
clear guidelines to ensure that all property developers and managers
were accountable for the management of funds under their control.
"One way is to
ensure that the sinking fund collected by developers is deposited in
a separate trust bank account to be managed in a transparent manner.
"Often developers
have used the sinking fund as collateral to get a bank overdraft
facility. "Section 46(d) of the Strata Titles Act should be
redefined to specify how the sinking fund should be used.
"There should also
be clear guidelines to ensure that all property managers provide
yearly statements of audited accounts to owners."
Geh pointed out
that these measures were necessary to prevent irresponsible
developers and property managers from running a deficit in
operational expenditure and handing this over to the newly-formed
management corporation.
Both Dass and Geh
said the authorities should also step up enforcement to ensure that
only qualified professionals do property management and specific
legal guidelines should be made available to deal with errant
property managers.
"Only people with
professional qualifications in property management should be allowed
to be property mangers. This is because there is much more to
property management than maintenance work alone," Dass said.
The Valuers, Appraisers and Estate Agents Act 1981
states that "no person shall unless he is a registered valuer or
appraiser and has been issued with an authority to practise, act as
a property manager."
However, this does not apply to property owners who
manage their own property or to any registered estate agent duly
authorized by the board to carry out property management.
"Many of the
problems arise during the transition period between delivery of
vacant possession and issuance of strata titles," said a valuer who
wished to remain anonymous.
He said the
proposed Building and Common Property (Maintenance and Management)
Act could assist in alleviating property management woes.
"However, it would
depend on how efficiently it is enforced."
If enforced
stringently once it is passed, the Act will enable people like Tan
to have a say in how their buildings are managed.
|
|
|
|
