Exploratory Study of Maintenance Charges Budgeting for Strata

    EXPLORATORY STUDY OF MAINTENANCE CHARGES BUDGETING FOR STRATA DEVELOPMENT  

 Assoc. Prof. Dr Norfashiha Hashim, Assoc. Prof. Sr. Dr Norazian Mohd Yusuwan, Sr Dr. Siti Mazzuana Shamsuddin, Dr Siti Rashidah Hanum Abd Wahab, Mohamad Ariffin Mohd Nohrovi

College of Built Environment

Universiti Teknologi Mara

40450 Shah Alam, SELANGOR

ABSTRACT

Maintenance fees are essential for managing any property, especially strata buildings. A major challenge in strata developments is prioritizing maintenance expenses, which directly impacts overall charges. A proper budgeting practices are crucial for maintaining and sustaining these shared spaces. The goal of this research is to develop a standardized maintenance charge rate for budgeting purposes in strata developments. The research objectives are threefold: first, to explore the current budgeting practices used by property owners and management committees in strata developments; second, to identify the key factors influencing maintenance charges budgeting; and third, to establish a standardized rate for maintenance charges. This study was conducted in the Klang Valley, covering a variety of strata developments including low-cost, medium-cost, and high-cost housing. Data were collected through semi-structured interviews and focus group discussions, offering comprehensive insights into current practices and challenges. The findings reveal that budgeting practices largely depend on historical expenditures, which may not accurately reflect future maintenance needs. Key factors influencing maintenance charges include the building's age, available facilities, and other variables such as occupancy rates and maintenance frequency. The insights were validated through an iterative process involving expert interviews and focus groups to ensure data accuracy. Based on expert feedback, the proposed standardized rate was refined to better reflect actual maintenance costs. This research lays the groundwork for a standardized maintenance charge rate that enhances budgeting accuracy, financial planning, and sustainability in strata developments. By adopting this approach, property owners and management committees can ensure more equitable and effective maintenance charge allocations, resulting in better-maintained living environments and increased resident satisfaction.

Keywords: Budgeting, Maintenance Charges, Strata Development, High-Rise Residential