WE refer to the letter “Tailor management services to meet specific needs” (The Star, Sept 27). It is important to clarify several key points regarding self-management and the broader responsibilities of managing strata properties.
The Valuers, Appraisers, Estate Agents, and Property Managers Act 1981 (Act 242), which regulates professional property managers, does not disallow self-management by joint management bodies (JMBS) and management corporations (MCS).
Similarly, the Strata Management Act 2013 (Act 757) governs the management and maintenance of common properties by JMBS and MCS, and also indirectly grants them the right to self-manage their strata properties. This includes directly employing staff, such as building managers, to carry out property maintenance and other duties. This flexibility allows these bodies to exercise greater control over the management and finances of their developments.
However, it is important to note that building management is merely a subset of the broader discipline of property management. While experienced building managers can competently oversee daily operations such as maintenance, repairs, and security, they may lack the expertise to advise on the full spectrum of property management.
This includes strategic planning, financial oversight and, crucially, ensuring compliance with the complex legal obligations under the SMA 2013.
Property management encompasses a much wider range of responsibilities, including adherence to legal and regulatory frameworks, dispute resolution, and long-term financial planning.
Without professional property management expertise, many MCS and JMBS may struggle to fulfil their legal responsibilities effectively, which can lead to mismanagement and conflicts.
While some self-managed strata developments have been successful in maintaining their properties and serving the interests of owners and occupiers, many others have faced challenges.
Issues such as poor financial control, inadequate maintenance, and failure to comply with the SMA 2013 have led to conditions that negatively impact both property values and residents’ quality of life. The independence and impartiality of property managers become crucial when conflicts arise among committee members.
The flexibility provided by Act 242 and SMA 2013 is intended to empower strata developments to choose the management model that suits them best. However, it also highlights the importance of expertise and proper oversight.
So, while Act 242 and SMA 2013 provide strata developments with options for self-management, the distinction between building management and full-spectrum property management cannot be overlooked.
The broader scope of property management requires specialised knowledge and legal compliance that may exceed the capabilities of those solely focused on building management.
Consequently, MCS and JMBS must carefully assess whether they have the necessary expertise before opting for self-management.
Sr Michael Kong
By SR MICHAEL KONG PRESIDENT The Association of Valuers, Estate Agents, Property Managers and Property Consultants in the Private Sector Malaysia
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