{"id":10635,"date":"2018-09-09T02:29:28","date_gmt":"2018-09-08T18:29:28","guid":{"rendered":"https:\/\/www.99.co\/blog\/singapore\/?p=10635"},"modified":"2022-07-01T04:59:24","modified_gmt":"2022-06-30T20:59:24","slug":"agm-condominium-management-council-mcst-2","status":"publish","type":"post","link":"https:\/\/www.99.co\/singapore\/insider\/agm-condominium-management-council-mcst-2\/","title":{"rendered":"Why it pays to be involved in your condo’s management council"},"content":{"rendered":"
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Last May, there was a much publicised furore<\/a> at executive condo One Canberra between the managing agent and their residents in the run up to their first AGM. How did things come to such a state? If you live in a condo, should you consider getting involved, or at least pay attention, to your management council? Council members work closely with the appointed managing agent to ensure that the estate is run properly; they are volunteers who give their time and energy.<\/strong> Sure, not everyone has the time to attend monthly meetings to deal with leaks in the toilets and repairs to light fittings, but read on, and you\u2019ll realise that there are pretty major things at stake.<\/span><\/p>\n

1. Your management council plays a role in your property value<\/strong><\/h3>\n

It\u2019s easy for most condos to look attractive for the first decade. The real test is when the 15 or 20-year mark rolls around. At that point, you\u2019ll see how important the management council is in ensuring that the value of your property does not plunge.<\/strong><\/span><\/p>\n

As condos get older, more and more facilities will malfunction or need replacement. First, the gym equipment starts falling apart. Then the intercom system for several hundred units may lose its video feed or no longer ring when a visitor arrives. After that, the water pumps at the swimming pool spoils resulting in an overflow of water and the basement carpark may look like a junkyard complete with sooty floors that would make a car mechanic in Sin Ming cringe.<\/span><\/p>\n

Nothing turns off a potential buyer or tenant more than to see litter on the floor, flickering lights in the lobbies and lifts that don\u2019t work.<\/span><\/p>\n

\"Condo
Playing an active role in your condo’s management council can ensure facilities are kept safe and functional.<\/figcaption><\/figure>\n

The state of common property and amenities has a big impact on resale value, since most buyers don\u2019t want to pay good money for a condo when the nearby HDB Executive Condominium may boast facilities that puts your condo\u2019s to shame. It also has a big impact on rentability – as other newer condos start coming up nearby, your property will be in competition with newer developments for good paying tenants. You won\u2019t attract many tenants if, compared to a newer project two blocks away, your property resembles the set of a horror movie.<\/span><\/p>\n

To be clear, older condos will almost always command a lower rental than\u00a0<\/span>their newer counterparts nearby. But the difference in rental income is affected by how efficient the managing agent is in maintaining the condo. Hence, it is important for management councils to keep a close eye and work closely with their managing agents.<\/span><\/p>\n

There are cases where the council decides to save money by not repainting\u00a0<\/strong>the estate until its 8th year when under the law, this has to be done every five years.<\/strong> The council may think that they\u2019re doing right by their fellow residents — to get away with spending less money — when in actual fact a tired and dirty looking condo devalues your property. Rent will start to fall and before you know it, KTV lounge hostesses may start moving in <\/span>en masse<\/span><\/i> into your beloved condo. Beware the slippery slope. Once your condo goes down this road, it may reach the point of no return and earn itself a dubious reputation.<\/span><\/p>\n

If you see things that need replacement or repair in your condo, write to the managing agent or the management council. Or you could raise the issue in a management council meeting (you are allowed to attend these meetings as an observer). Otherwise, make the time and effort to attend the AGM and raise these issues then. Remember, it\u2019s <\/span>your <\/span><\/i>money at stake, so it is in your interest to do so.<\/span><\/p>\n

2. You need to know where your maintenance funds are going<\/strong><\/h3>\n

Most people pay at least $250 to $300 a month in maintenance fees and sinking fund. For luxury condos or units that are bigger, this could well be double or more. So that could leave you wondering how, with all that money, the condo pool is still becoming a cesspit and the lobby lights don’t work. But that\u2019s where most\u00a0<\/span>owners stop: they wonder, they complain, and in extreme cases they shoot off a testy email.<\/span><\/p>\n

On the other hand, if you get involved (either by actively engaging council members or trying to join it yourself) you\u2019ll get a sense of what\u2019s being fixed and what\u2019s not.<\/strong> You\u2019ll know if the security company is being changed to a lower bidder, or that the condo has paid the same company nine times to fix the elevator in the last two months.<\/span><\/p>\n

Beyond basic maintenance, the management council also oversees the removal\u00a0<\/span>of old facilities and the addition of new facilities (75% of the owners present at the AGM or Extra-Ordinary Meeting (EGM) must vote in favour of such proposals). That means that you can push for a resolution to remove (rather than to spend money to replace) a useless and rusty water fountain that breeds more mosquitoes. Or if the council decides to put forward a proposal to terminate a much needed shuttle bus service to the MRT, as a council member, you will be able to persuade the other council members to keep it.<\/span><\/p>\n

[Recommended article<\/em>:\u00a0The most life-threatening condo hazard you didn’t know about<\/a>]<\/p>\n

3. You\u2019re the one who has to alert authorities<\/strong><\/h3>\n

For One Canberra\u2019s first AGM, the managing agent <\/span>picked a country club<\/span><\/a> to hold its first AGM. That would have cost $19,000 for a rented ballroom; and to their credit, some residents caught that even before they had a management council (the first AGM is to elect the members of the management council).<\/span><\/p>\n

\"make<\/p>\n

Beyond the first AGM though, the system is set up so that <\/span>owners <\/span><\/i>are counted on to maintain the council\u2019s integrity. If any owner believes the AGM hasn\u2019t been properly conducted — or that any resolutions are illegal — they\u2019re the ones who have to file a complaint with the Strata Titles Board.<\/span><\/p>\n

As an owner, you are\u00a0<\/i><\/strong>the check and balance for your management council.<\/strong> If the council decides that $50,000 should be spent on a golf putting green that only\u00a0<\/span>they <\/span><\/i>want, and no one turns up at the AGM or EGM to vote against such a resolution, then that\u2019s just tough luck for the whole lot of you.<\/span><\/p>\n

For the most part, the authorities only step in when <\/span>you <\/span><\/i>blow the whistle on any wrongdoing.<\/span><\/p>\n

4. Standard operating procedures (SOP) set by the management council you need to keep an eye<\/strong><\/h3>\n

SOPs determine things like who can sign cheques from the condo\u2019s funds,\u00a0<\/span>or how many vendors must be considered as part of procurement exercise (e.g. there must be at least 3 bids from different companies, before they select a security company).<\/span><\/p>\n

There\u2019s a common misconception that a government body monitors all this.<\/strong> There isn\u2019t, or at least not directly. According to the Building Maintenance and Strata Management Act (BMSMA), the management council is tasked with voluntarily establishing some internal controls. Unless someone complains, the Building & Construction Authority (BCA) will not know that there was any mismanagement.<\/span><\/p>\n

So think about what that means for, say, the bidding process: can someone\u00a0<\/span>on the council strike a private deal with a buddy, and award an overpriced contract to his friend\u2019s company? (If this occurs, you should inform the BCA).<\/span><\/p>\n

So, stick your nose in things. But make sure you establish the facts first before you bring up your complaints.<\/span><\/p>\n

Owner-occupiers have a higher stake than investors; the property isn\u2019t just something that your tenants have to deal with. You have to live there day in day out, for an extended period of time. Condos aren\u2019t HDB estates, so you can probably make a more immediate difference by attending council meetings as an observer or joining one, instead of writing long emails to your MP. \u00a0<\/span><\/p>\n

Normally, for a well-managed condo, it may be just a case of emailing the managing agent to point out areas of improvement to maintain or enhance the value of your property. After all, if you\u2019re not going to safeguard its value, who will?<\/span><\/p>\n

Are you involved in your condo’s management council?<\/em>\u00a0Share your experiences in the comments section or on\u00a0our Facebook community page<\/a><\/em>.<\/p>\n

 <\/p>\n

If you found this article useful, 99.co recommends Condo management: The most underrated cause of selling at a loss<\/a>\u00a0and 4 ugliest ‘condo MCST vs resident’ fights in Singapore history<\/a><\/p>\n

Find the home of your dreams today at Singapore\u2019s largest property portal 99.co<\/a>!<\/p>\n

 <\/p>\n

 <\/p>\n","protected":false},"excerpt":{"rendered":"

Last May, there was a much publicised furore at executive condo One Canberra between the managing agent and their residents in the run up to their first AGM. How did things come to such a state? 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