Wednesday, May 25, 2011

External Factor - Joint Management Body (JMB)

One of the factor you should consider when buying a second hand property (condo/apartment) is the strength of the Joint Management Body (JMB). JMB concept is made mandatory by government few years back to enforce each condo/apartment to form it own management team consist of the resident and the developer.

In short: A strong JMB committee will make your property value increase, and vice versa.

For your information, expenses of a condo/apartment is very high, it reach million per year. Therefore the income (maintenance fee + sinking fund) must tally and more than the expenses, else your condo will "loose face" sooner or later.

Go and flip through the AGM meeting minutes sent to you every year, you will be shock seeing how much money is spent on every single items. A team of guard may cost rm20k per month, Gardener + Landscapes material maybe cost rm8k, lift maintenance maybe rm15k, electricity rm10k and so so..... I can assure you is not cheap.

So now let's imagine, if your condo do not have enough money,
- How can you afford to repaint your condo every 5 years?
- How can you afford to maintain the lift and ensure it is working all the time? 
- How can you afford to hire Nepalese guard instead of cheaplak guard?
- How can you afford to hire gardener to maintain the landscape or just let the weed grow?
...many more....

On the other hand, every condo is live by many different people, with different personal interest. As JMB, they will receive all different weird request from those residents. Some may request JMB to provide drink and tower at Gym area, some request shuttlecock to be provided at badminton hall, more light install at certain area and etc. If a JMB is not strong and not able to balance which request should be fulfill and what is not, then you either sell your condo fast fast, or vote to change the JMB in next AGM.

Worse is when people have lost their trust to JMB, the those resident will stop paying the maintenance fee, means no income to the condo. Then lift will start not functioning, rubbish may only clean once a month and etc.... Flip through newspaper you will be able to see this kind of news almost every week.

1 comment:

  1. I think the worst was no plp voluntery to be a JMC. As what I see, Puncak Damansara Condo has a great JMC team.