property-management

Strata Management & Maintenance FAQ

According to a survey carried out by REHDA Institute in 2018

jmb

Establishment of JMB is not later than 12 months from the date of vacant possession. Purchaser request early formation of JMB.

It is a norm to establish the JMB on the 10th month from the 1st VP though the SMA allows for maximum of 12 months. Earlier date may not be practical as occupation of the strata units could be quite low. It is better to elect among residents (purchasers who have moved in to stay) as committee members than the investors (who do not stay at the strata units).


Property Management FAQ on Management Body JMB JMC MC

  • Establishment of JMB

Question
Establishment of JMB – not later than 12 months from the date of VP. Purchaser request early formation of JMB (refer to Section 17, SMA).

Answer

It is a norm to establish the JMB on the 10th month from the 1st VP though the SMA allows for maximum of 12 months. Earlier date may not be practical as occupation of the strata units could be quite low. It is better to elect among residents (purchasers who have moved in to stay) as committee members than the investors (who do not stay at the strata units).

  • Participation in the JMB

Question
After the establishment of JMC, parcel owners are not actively participating in the activities organised by the JMC (refer to Section 22, SMA). Developer compelled to continue playing an active role at the management of the property to ensure matters are being taken care of.

Answer

The JMC elected should keep organizing engagement session with the parcel owners to encourage their involvement. As committee members from the parcel owners may not have the necessary experience, hence the developer through his representative as a member of the joint management committee should play an active role as continuous service to your customers. Engage a good property manager who will carry out the day-to-day property maintenance and management with high professionalism and etiquette.

  • Resignation of Member of JMC

Question
After the establishment of JMB – there is withdrawal by elected member of the joint management committee. Proxy being appointed by individual owner should be allowed.

Answer

All members of the joint management committee have to be elected during the AGM. Should a vacancy arise, the remaining members may appoint any parcel owner to be the member as per Second Schedule Paragraph 3(5) of SMA. Reference: Under Second Schedule Paragraph 3(5) of SMA, where a vacancy in the membership of the management committee occurs otherwise than by operation of subparagraph 3(1) or 3(3). The remaining members may, subject to subparagraph 2(8), appoint another proprietor to be a member until the next annual general meeting. Subparagraph 3(1): vacation of office of member of management committee. Subparagraph 3(3): Except where the management committee consists of all the proprietors, the MC may, at any time, by resolution at an EGM remove any member of the management committee from office and subject to subparagraph 2(8) appoint another proprietor in his place to hold office until the next annual general meeting. Subparagraph 2(8): For the avoidance of doubt, a proxy appointed by a proprietor shall not be eligible for election.

  • Formation of MC

Question
Formation of MC disallowed by JMB

Answer

As one seat on the JMC is reserved for the Developer, the reason for disallowing for the formation of MC should have been discussed during the JMC meeting, and known to the developer. If there is no valid reasons, the developer is to inform and seek COB assistance to conduct the 1st AGM of the MC.

  • Interest to be members of MC

Question
Not many people are interested to become members of MC without any incentives.

Answer

A minimum of 4 members is good if they are active and capable. A good and responsible property manager is as important as the Management Committee. Select a good property manager as they are the one who will carry out the day-to-day property maintenance and management.

  • Annual Financial Accounts

Question
Unable to finalize and produce the annual financial accounts.

Answer

Property Manager must distribute account to JMC on a monthly basis. Monthly account must be presented and discussed during the JMC meeting, which must be held every 2 months, for deliberation and approval. Treasurer must go through the account in detail especially debtor and creditor report and the ageing. The JMB account has few transactions except the collection of monthly maintenance charges and sinking fund. It is not a complicated account and the management committee should find from the property manager the reasons that account cannot be finalized, and then take appropriate action including making report to Board of Valuers, Appraisers, Estate Agents and Property Managers Malaysia.

  • Abuse of authority by committee members

Question Abuse of authority by JMB/MC committee members.

Answer

Such a committee member has to vacant office as per Second Schedule Paragraph 3 of SMA. To make a report to the COB for advice and action. Under Paragraph 3(3) of Second Schedule in SMA, except where the management committee consists of all the proprietors, the JMB/MC may, at any time, by resolution at an EGM to remove any member of the management committee from office and subject to subparagraph 2(8) appoint another proprietor in his place to hold office until the next AGM.

  • Incompetent Property Manager

Question
How to deal with incompetent Property Manager?

Answer

Developer must set a high standard in property management during the Developer’s Management Period in order to create awareness and expectation
To manage expectation, it is advisable to:
To conduct survey every 3 months among the strata unit owners and residents (online survey) to manage expectation.
To hold town hall meeting every 6 months to discuss any management issue.
To appoint registered Property Manager only and the term of appointment is 1 year subject to renewal.
To seek endorsement at the AGM on the appointment or renewal of Property Manager so that the level of service can be discussed.
To report and seek advice from COB.
To report and seek advice from Board of Valuers, Appraisers, Estate Agents and Property Managers Malaysia for advice.


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