Management fee and the value of your residence

22 ธ.ค. 2016 เคล็ดลับการอยู่อาศัย


Condominium, Capital Gain

Every year, every one of us must pay regular annual expenses, such as life and vehicular insurance as well as the management fee for a home in a subdivision or a condominium. These payments are due on specific dates every year. The good thing is we have time to plan the budget for these regular expenses.

Today we will share the information on the management fee of either a housing subdivision or a condominium. Although the so-called management fee is tolerated and well understood by owners, residents and investors in real estate in relations to condominium units. However, with the economic growth and the popularity of the investment and residency in condominium units, more and more condominium projects are being built.

Very often that the juristic person come across residents who refuse to pay, postpone or do not want to pay interests on late payments. There are several grounds for such intention to default, such as the owners have not taken up residence, they claim they have not used any central services, have not received the invoices, are not satisfied with the services of the central management or other condominium personnel, namely the maids or the security guards.

Condominium, Capital Gain

Although the owner of a condominium unit may cite various reasons for the refusal to pay the management fee as above, the fact is when a person bought or was transferred a condominium unit, as the unit owner, he/she is considered to be a co-owner of the incorporated condominium project and is required by law and by the management’s rules and regulations that have been enshrined by law with the Land Department. This is the basic rule that all unit owners must know and follow without any such exemptions as claimed above. For a condominium, the management fees will be used to equitably cover any expenses, such as:

1. Expenses as per contracts, the hiring of the property management personnel, technicians, security personnel, housekeeping, gardeners, pest controller, etc.

2. Utility payments, such as electricity, water, telephone, Internet.

3. Office supplies and expenses used by the juristic person in their routine work, such as stationery, all kinds of forms.

4. Expenses for maintenance and repairs, such as chemicals used to clean the swimming pool, refills for fire extinguishers, machinery and equipment repairs, etc. This is especially crucial when the buildings are getting older and many items would deteriorate over time. These expenses may increase as the building ages.

5. Other expenses that are related to the management of a condominium project.

The above examples clearly show that the management fee is important and the expenses really do occur and that the juristic persons (not the unit owners) are responsible for meeting these expenses. If some residents neglect to pay the management fees, or delay their payments, the juristic person will lose its liquidity and will cause problems to the project in the long term, which may include the ability to enter into contracts with suppliers, the maintenance of the building and the machinery and utilities, etc.

The end result would be the trouble and anxiety for the residents in all aspects, such as security, comfort, the attractiveness of the project, etc. If the conditions of the project deteriorate, the net worth of the project will also be eroded resulting in the drop in resale value and the difficulty in trying to sell the units. Therefore, it would not far off the mark to say that the regular payment of the central management fee will help to sustain the wealth of the unit owners.


Plus Property provides first-class property services to those looking to sell or rent out their property. Our highly experienced team also offers professional consultation on request. For additional information on condominiums that provide (the very latest cutting-edge technologies), call 02 688 7555 or click here to find units available for sale.


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