Monthly management fees for Bangkok Condos
If you buy a condo in Bangkok, there will be common areas which need to be taken care of. Obviously, these areas need to be kept in good condition, clean and tidy so as to maintain the value of your investment.
Such common areas may include entrance lobbies, corridors or walkways, gardens, swimming pool or fitness rooms. Not to mention the car parking areas. Then there is the maintenance and repair of the building (external wall, roof, lifts and building systems) which needs to be planned and executed.
Invariably, in large blocks, there will be a management company appointed to take care of the duties involved in managing the building and providing the necessary services to residents. The management company is different than the “juristic person” which is the representative of the legal entity owning the common areas of the building. The juristic person is responsible for compliance with any legal requirements or obligations which the owner of the condominium block has under the relevant Condominium Acts.
If we go back to management fees, typically they will cover the provision of services such as:
- cleaning and routine maintenance and repair of common areas in the building, including entrance areas, pools and gym areas;
- provision of security guards (usually 2 or 3 shifts covering a 24-hour basis);
- provision of a receptionist and office staff for:
- accounting matters, collection of management fees, chasing up arrears
- budgeting of annual expenditure, both routine and any special capital expenditure;
- supervision of other staff in the building;
- arranging repair and maintenance works;
- leasing or sales enquiries
- insuring the building (but usually not the contents of each condo unit);
- pest control;
- keeping any garden clean and tidy
Management fees may need to be paid monthly or quarterly or even annually. The total expenditure for the building for the year is calculated and then divided by the number of notional shares each owner has in the whole building. This depends on the floor area of the unit(s) you own. The end result is that your management fees will usually be expressed as “so much per m2”. That is, if the management fee is Baht 35/m2 per month and you own 100m2 then the monthly management fees will be Baht 3,500pm.
These fees exclude any proviso for special repairs or maintenance items such as if an air-conditioning chiller breaks or the exterior of the building needs repainting. In theory, the payment for these types of items should be covered by the “sinking fund reserve” or “capital reserve” but the management of some condo buildings like to leave this reserve intact and charge a special levy for major items.
As a rule, management fees for new condos in Bangkok tend to be higher than in older buildings but, in any event, you need to check the amount you need to pay before you buy!