Condo Management Charges

[howzat]

I am on co owners commitee and am questioning why we have to pay not only managemnt charges, security sharges, cleaning charges but also the salaries of the employees as a separate charge. Is this normal with a large company like Frank Knight for example. Our mangement company is small and unheard of but we are looking at cost savings inorder to keep the common charge per sq mtr the same. My condo building is 8 stories with about 40 units in Suk 39 area and is 3 years old. Total charges nearly 2 m baht per year. Is that reasonable for this size of building.

Thanks for help.

[trogers]

An 8-story condo building on about a rai of land will probably have saleable area of about 5,000m2. That means the 40 units are rather large units.

If the juristic committee are to employ staff and a juristic manager directly, you may be able to keep annual expenses within Bt1.5m, the balance being overheads and profits of the large management company.

Assuming monthly maintenance fee is levied at Bt35/m2, you will have a balance of Bt0.5m a year for replacement cost of main equipment.

Edited July 24, 2009 by trogers

[kplesq]

No break down of charges at my building (Raimon Land, Touch/Plus Property). Only insurance is billed separately.

[trogers]

No break down of charges at my building (Raimon Land, Touch/Plus Property). Only insurance is billed separately.

A monthly statement of income and expenditure is usually posted on a notice board with breakdowns for main items - like services of security guards, cleaning and repairs, common area electricity and water, garbage disposal, staff, and misc.

[Gary A]

I have a condo in Baan Suan Lalana in Jomtien. The grounds are beautifully kept, the swimming pools are spotless and security is second to none. The maintenance charge is 10 baht per square meter per month. This charge also covers trash disposal and insurance. The fund always has a surplus and they return 2 thousand baht if you attend the annual meeting. The 2 thousand refund is for a 60 square meter unit.

How do condo associations justify rates several or many times the 10 baht per square meter.

[hhgz]

"...we are looking at cost savings inorder to keep the common charge per sq mtr the same..."

The same as "what"?

"Total charges nearly 2 m baht per year. Is that reasonable for this size of building."

Simply dividing the number of units by the total charge, you're paying less than 4200 THB/mo/unit. What do think would be reasonable for your building? What do other owners think would be reasonable? What is the monthly fee per sqm?

Part of the job of the co-owners committee is to get competitive bidding for all necessary services, including that of the management company. If you believe that the management company is too expensive, it is up to you, and your committee members to find another service. Here's the good news. Condo management companies are always looking for new clients, and the best of them manage several different developments. It would behoove you to contact another management company, and ask what they would charge for the same services. Too, they can show you the accounting for the other condo developments.

[trogers]

I have a condo in Baan Suan Lalana in Jomtien. The grounds are beautifully kept, the swimming pools are spotless and security is second to none. The maintenance charge is 10 baht per square meter per month. This charge also covers trash disposal and insurance. The fund always has a surplus and they return 2 thousand baht if you attend the annual meeting. The 2 thousand refund is for a 60 square meter unit. How do condo associations justify rates several or many times the 10 baht per square meter.

Baan Suan Lannana - how many buildings on how many rais of land?

Will the charge still be Bt10/m2 if this project is just a rai with only one building? Will the total Bt50,000 collected every month be enough?

[Gary A]

I have a condo in Baan Suan Lalana in Jomtien. The grounds are beautifully kept, the swimming pools are spotless and security is second to none. The maintenance charge is 10 baht per square meter per month. This charge also covers trash disposal and insurance. The fund always has a surplus and they return 2 thousand baht if you attend the annual meeting. The 2 thousand refund is for a 60 square meter unit. How do condo associations justify rates several or many times the 10 baht per square meter.

Baan Suan Lannana - how many buildings on how many rais of land?

Will the charge still be Bt10/m2 if this project is just a rai with only one building? Will the total Bt50,000 collected every month be enough?

There are about nine five story condo buildings and maybe 40 houses. It is a large gated complex off Soi Chaiyaphum in south Jomtien. I really think some of the complexes are rip offs and someone is getting rich. (thieves). A lot of condo units and a small amount of land should be cheaper to maintain than a large complex with a lot of grounds to maintain.

[thaiwanderer]

I am on co owners commitee and am questioning why we have to pay not only managemnt charges, security sharges, cleaning charges but also the salaries of the employees as a separate charge. Is this normal with a large company like Frank Knight for example.

Would you prefer it if the same fee was charged but the details were not broken down?

Our mangement company is small and unheard of but we are looking at cost savings inorder to keep the common charge per sq mtr the same. My condo building is 8 stories with about 40 units in Suk 39 area and is 3 years old. Total charges nearly 2 m baht per year. Is that reasonable for this size of building.

Thanks for help.

It is impossible to assess whether it is fair just on the size, number of units, location and age as that speaks nothing of the quality of the condo that you are seeking to maintain.

There is always going to be a certain amount of 'fat' (greater or lesser) on such charges. Trimming it excessively can be counter productive as it is for maintenance but I appreciate your concern generally.

You will of course be aware that should a dispute arise, even if you have a work permit for other work it will not authorise your activities on the committee?

Edited July 26, 2009 by thaiwanderer

[trogers]

I have a condo in Baan Suan Lalana in Jomtien. The grounds are beautifully kept, the swimming pools are spotless and security is second to none. The maintenance charge is 10 baht per square meter per month. This charge also covers trash disposal and insurance. The fund always has a surplus and they return 2 thousand baht if you attend the annual meeting. The 2 thousand refund is for a 60 square meter unit. How do condo associations justify rates several or many times the 10 baht per square meter.

Baan Suan Lannana - how many buildings on how many rais of land?

Will the charge still be Bt10/m2 if this project is just a rai with only one building? Will the total Bt50,000 collected every month be enough?

There are about nine five story condo buildings and maybe 40 houses. It is a large gated complex off Soi Chaiyaphum in south Jomtien. I really think some of the complexes are rip offs and someone is getting rich. (thieves). A lot of condo units and a small amount of land should be cheaper to maintain than a large complex with a lot of grounds to maintain.

Yes, a lot of condo units and a small amount of land seems cheaper - provided the building is not high-rise. Cost of services of high-rise will escalate when over a decade old.

A low density development of condo buildings of 8 storeys or less on a large piece of land will be most economical to maintain and manage.

I have two 60m2 units at Baan Suan Lanana, Suan Luang, Bangkok. The project is on 25 rai of land, with 24 blocks of 6-storey building (4 units per floor) and a row of townhouses. Monthly expenses are about Bt350-380k. Just 5 guards on two 12-hour shifts cost over Bt80k a month.

Edited July 26, 2009 by trogers

[farangpattaya]

I am on co owners commitee and am questioning why we have to pay not only managemnt charges, security sharges, cleaning charges but also the salaries of the employees as a separate charge. Is this normal with a large company like Frank Knight for example. Our mangement company is small and unheard of but we are looking at cost savings inorder to keep the common charge per sq mtr the same. My condo building is 8 stories with about 40 units in Suk 39 area and is 3 years old. Total charges nearly 2 m baht per year. Is that reasonable for this size of building.

Thanks for help.

I've been on a co-owners committee once, and there was an annual co-owners meeting necessary in order to approve the budget and the exploitation of the complex. The additional cost for maintenance, service, staff, and all the other items, has to be approved by the committee!

In this case, I won't be surprised if the condo-management is some kind of company with all sorts of other activities, and let the owners of the condominiums pay for their expenses.

[trogers]

I am on co owners commitee and am questioning why we have to pay not only managemnt charges, security sharges, cleaning charges but also the salaries of the employees as a separate charge. Is this normal with a large company like Frank Knight for example. Our mangement company is small and unheard of but we are looking at cost savings inorder to keep the common charge per sq mtr the same. My condo building is 8 stories with about 40 units in Suk 39 area and is 3 years old. Total charges nearly 2 m baht per year. Is that reasonable for this size of building.

Thanks for help.

I've been on a co-owners committee once, and there was an annual co-owners meeting necessary in order to approve the budget and the exploitation of the complex. The additional cost for maintenance, service, staff, and all the other items, has to be approved by the committee!

In this case, I won't be surprised if the condo-management is some kind of company with all sorts of other activities, and let the owners of the condominiums pay for their expenses.

This will depend on how much hands-on involvement the Residents' Committee has over approval of service contracts and making payments. Property management contracted to a company carries a service charge. Self-managed developments will save on this service charge.