Factors affecting the Maintenance Fees & Sinking Fund

June 17, 2022
July 22, 2022

When the term “strata” was first introduced in Malaysia, it referred to high-rise residential and In our previous blog post: “How Much Should You Actually Be Paying For a Strata Property’s Maintenance Fees & Sinking Funds?” We talked about “What are the maintenance fees and sinking funds in Malaysia and what these fees covered.” Maintenance Fees and Sinking Funds cover expenditures such as property security systems, lift and escalator maintenance, cleaning services, minor repairs to public property, and so on.

In today’s blog, let’s understand more about this topic by knowing how these fees are calculated and some factors affecting them.

How are these fees calculated?

Now let’s look at how they’re calculated and how much you should budget for payments.

Maintenance FeeSinking Fund
Operating Expenses ÷ Number of units in development10% of the Maintenance Fee

Factors that determine these costs:

  • Parcel size: The larger the size of the property unit you acquire, the higher the amount you must pay for your maintenance charge. 
  • Density: Owners in a high-density development will pay less than those in a low-density development.
  • Access to facilities: More facilities may appear appealing at first, but the variety may cost you more.
  • The lifespan of facilities: Building age and the quality of building material affects the maintenance costs.

Remember that good property management is also a cost factor. If your apartment management staff fails to keep up with maintenance, fails to review contracts, or overcharges you, your expenditures will be greater than they should be.


The level of quality in maintenance is subjective, and it all depends on the lifestyle you are prepared to spend your money on. Nonetheless, with so many variables to consider when determining the sinking fund and maintenance costs, make sure that you acknowledge how much you’re paying for it monthly.

For further information regarding the Strata Management Act 2013, refer to  http://www.rism.org.my/wp-content/uploads/2015/07/1-Strata-Management-Act-2013-Act-757.pdf

For further information regarding the Strata Management (Maintenance & Management) Regulations 2015, refer to http://mippm.org.my/documents/SMA2013SMR2015/1.%20Strata%20Management%20(Maintenance%20&%20Management)%20Regulations%202015.pdf

Engaging in professional property management will save you a lot in a long run. Talk to us today!

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