Management Fees On A Development

[kalimguy]

Hi, We have a villa on a development in Phuket and our maintenance fees are about to double! Can anyone tell me what the "correct" rate or range should be (e.g. per square metre of living space)? The fees include satellite TV, internet connection. It does not include utilities. Many thanks!

[CroBiker]

Hard to say, depends on location.

Gated community where our house is situated charges 500 baht for every 40 sq wah (160 sq meters) land.

Also, one of our condo units of 120 sq meters situated at Viset Rd is subject to 55,000 baht annual management fee.

Big difference in price.

[logbags]

Hard to say, depends on location.

Gated community where our house is situated charges 500 baht for every 40 sq wah (160 sq meters) land.

Also, one of our condo units of 120 sq meters situated at Viset Rd is subject to 55,000 baht annual management fee.

Big difference in price.

This is what has always concerned me about these fees. What is going to stop people charging what they like for them once places are sold and locked in.

[jackdawson]

What is going to stop people charging what they like for them once places are sold and locked in.

nothing

[ExpatJ]

Maintenance fees in Thailand are too low as it is- better to pay reasonably high fees so that there are actually funds available to keep the property well managed- that way the value of you property is increased and maintained for longer. I would be worried about investing in a property that had rock bottom fees.

Of course, in return for higher fees, need to make sure the company actually uses and accounts for them.

[clinique]

Maintenance fees in Thailand are too low as it is- better to pay reasonably high fees so that there are actually funds available to keep the property well managed- that way the value of you property is increased and maintained for longer. I would be worried about investing in a property that had rock bottom fees.

Of course, in return for higher fees, need to make sure the company actually uses and accounts for them.

AND you need to make sure ALL the owners pay up their dues, - many (thais) do not, hence the poor maintenance of many buildings in Thailand.

[sarahsbloke]

The house I live in on a gated mooban has no fees and free water.

(no facilities thought)

The last house I lived in on a non-gated mooban had no fees and a 5bht a cubic meter charge for water.

Edited April 16, 2010 by sarahsbloke

[F1fanatic]

Maintenance fees in Thailand are too low as it is- better to pay reasonably high fees so that there are actually funds available to keep the property well managed- that way the value of you property is increased and maintained for longer. I would be worried about investing in a property that had rock bottom fees.

Of course, in return for higher fees, need to make sure the company actually uses and accounts for them.

You're kidding right??

ALL the fees charged by some developments (obviously can't talk about all of the develpments) are WAY over the top. Its how they continue to make lots of money once the profit on selling the houses has ended 'cos they are all sold.

A friend of mine has a house in a top-end Rawai development and I just sit open-mouthed at the charges for water, electricity, gardening etc. etc.

If they lived in a 'normal' house, they'd be charged less than 50% of the price they're paying for ALL these charges.

Fortunately for the developers (management company) all the owners are so wealthy they can't be bothered to argue. Its how they get away with charging extortionate prices.

[Kimera]

The house I live in on a gated mooban has no fees and free water.

(no facilities thought)

The last house I lived in on a non-gated mooban had no fees and a 5bht a cubic meter charge for water.

Yes, but things change I had no fees, someone is paying for your dustbins and water I suspect that one day it will be you.

[ESB7]

Unless annual increases percentage rate is clearly stated in contract you are the mercy of the defeloper

[Valentine]

At our house in Kathu we always had high water bills which I did not think much about & but thought we might have had a leaking pipe which I could not find & so left it in the too hard basket. I eventually did find a leak & repaired it but the bills were still way too high so I went to the water office in Kathu to query the bill. I was informed we were paying the T3 rate which is over double the T1 rate & upon asking why he told me the developer had registered the T3 rate (in my mind, but not confirmed, it meant the developer was getting some of the money). As the water bill was in my wife's name I took her back to the water office & within 5 minutes, after signing some papers, the bill charging was changed to T1.

[kalimguy]

Thanks to you all for your helpful comments (and warnings!!)..