Kuala Lumpur: This is the conclusion of a three-part series on maintenance fee collection in strata properties. It examines enforcement challenges under the Strata Management Act 2013 (Act 757), the role of JMBs and MCs and the responsibilities of owners and tenants.

According to BERNAMA News Agency, lawyer Lai Chee Hoe also addresses key recommendations outlined in the first two installments, offering legal insights on financial sustainability and governance reforms. Experts highlight the need for better enforcement, education, and financial planning to improve compliance and long-term stability in strata communities.

It is not surprising, but experts have pointed out that some joint management bodies (JMBs) and management corporations (MCs) lack a clear understanding of their authority as stipulated in the Strata Management Act 2013 (Act 757) when it comes to collecting maintenance fee arrears. Many residents fail to take their financial obligations seriously, leading to mounting arrears that threaten the sustainability of strata properties.

For JMBs and MCs, stronger financial management and better strategies for collecting arrears are necessary, while owners and tenants must understand their responsibilities and contribute their share to maintain the property they call home.

Chee Hoe and Associates litigation partner Lai Chee Hoe said Malaysia’s legal framework for strata management Act 757 is comprehensive enough, providing sufficient legal avenues to address maintenance fee defaulters, with no immediate need for amendments to the Strata Management Act 2013 (Act 757). The key difference between Malaysia and Singapore lies in enforcement efficiency and housing policies.

Despite clear legal provisions, Lai said JMBs and MCs continue to struggle due to a lack of expertise, high legal costs, and a reluctance to pursue defaulters, leading to arrears spiraling out of control. While various legal avenues are available, JMBs and MCs often hesitate to enforce them, either due to financial constraints or reluctance to spend money to recover bad debts.

On the topic of mandatory tribunal action after a set period of default, Lai emphasized that JMBs or MCs should retain the discretion to decide when to initiate claims. He also dismissed a recent proposal requiring residents to pay utility bills through JMBs or MCs, stating it is legally unfeasible, particularly for residential schemes.

Some JMBs and MCs have explored alternative revenue streams, such as leasing rooftop space and renting billboard areas to generate additional income, provided they involve common property and all revenue is deposited into the maintenance account.

Enhancing legal knowledge, structured training, and financial literacy campaigns can significantly improve maintenance fee collection and overall property management among JMBs, MCs, and owners. Associate Professor Dr Rohayu Abd Majid emphasized the importance of legal workshops and seminars to strengthen enforcement capabilities.

There are no “suspects” when it comes to maintenance fee arrears, only stakeholders – JMBs/MCs and residents. Improved financial management literacy and transparency can lead to better collection rates, while residents need to prioritize maintenance fees as they do essential utilities.