How Much Should You Actually Be Paying For a Strata Property’s Maintenance Fees & Sinking Funds?

May 20, 2022
June 17, 2022

When the term “strata” was first introduced in Malaysia, it referred to high-rises residential and commercial units such as flats, apartments, condominiums, serviced apartments, Small Office Home Office (SOHO), Small Office Flexible Office (SOFO), and Small Office Versatile Office (SOVO). Later, the definition was implemented to cover some landed properties which these properties have shared facilities and services, such as gated and guarded communities. These shared facilities allow homeowners to pay the monthly maintenance fees and sinking funds to upkeep the common areas and shared utilities. Continue reading to understand more about these fees.

What are the maintenance fees and sinking funds in Malaysia?

Maintaining a property, especially one as large as a towering high-rise, may be expensive. Residents would want their homes to be kept in peak condition. The maintenance fee is a monthly charge that homeowners pay to cover these recurring costs. A sinking fund referred to a reserve to cater to emergencies that require a large sum of money in a sudden emergency, like a flood in the basement carpark during a thunderstorm or an urgent fix on a large crack on the walls.

What do maintenance fees cover?

The maintenance fee is primarily used to cover ongoing expenditures associated with managing and maintaining the property, such as

  • Better improving the property security system by hiring the security guards
  • Lift and escalator maintenance
  • Hiring the property management and administration staff
  • Electricity and water expenses for common areas such as lifts, car parks, swimming pools, and gyms
  • Cleaning services
  • Minor repairs to public property

Aside from maintenance fees, owners must also pay a monthly sinking fund. These funds, calculated at 10% of the maintenance costs, will be placed in a reserve fund for situations such as flood damage.


For further information regarding the Strata Management Act 2013, refer to

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