9 FAQs About Staying Active In Your Building’s Management

In this article:

• What Is the Joint Management Body (JMB) Or Management Corporation (MC)?
• Why Should You Be Part of The JMB Or MC?
• What Are the Downsides of Being Involved in Building Management?
• Is There a Need to Attend The AGM?
• How Does the JMB Or MC Work with The Property Management Company?
• I Don’t Agree with the Increased Management Fee Rate. Can I Do Anything?
• Can I Sue My Building’s Management?
• I’m A JMB/MC Member. Can I Resign Before the Next AGM?
• I Don’t Have the Time or Energy to Be Involved…..

If you are a property owner, you have a vested interest in the well-being of your building. This goes beyond the walls of your unit. It involves the shared spaces, facilities, and overall environment that you and your neighbours call home.

Staying active in your building’s management could also be an investment in your property’s future. Understanding your role, the significance of AGMs, and the dynamics of the Joint Management Body (JMB) or Management Corporation (MC) can shed light on why active participation can be beneficial.

Firstly, What Is the Joint Management Body (JMB) Or Management Corporation (MC)?

The main difference between a JMB and an MC is that the JMB is an interim body that exists before the issuance of strata title by the land office. The JMB is formed once the developer calls for an annual general meeting (AGM). The JMB committee members should consist of 3 to not more than 14 parcel owners, including one developer representative elected during the AGM.

After the titles are issued, the MC is established upon opening the strata register book. It does not function until the first Annual General Meeting (AGM) is convened and the management committee is elected. The JMB is automatically dissolved within three months from the date of the first AGM of the MC.

The JMB is responsible for the overall management of the building, adhering to the Strata Management Act (SMA). Their duties include:

Why Should You Be Part of The JMB Or MC?

Here are some of the perks of being actively involved in your building’s management:

1. A say in managing the building: This is a big one. Being involved in the JMB or MC gives you a direct say in how your building is run. This includes things like the budget, maintenance, and security.
2. Learning valuable skills: Serving on the JMB or MC can teach you valuable skills such as people management, negotiation, and financial planning. These skills can be helpful in both your personal and professional life.
3. Meeting your neighbours: Being involved in building management is a great way to meet your neighbours and get to know the people who live around you.
4. Making a difference: By being involved, you can help make your building a better place for everyone.

That Sounds Alright. But What Are the Downsides of Being Involved in Building Management?

Serving on the JMB or MC is not without its challenges. Here are the biggest ones:

1. Dealing with difficult people and decisions: Not everyone will agree with you, and you may have to deal with difficult people from time to time. Dealing with resident disputes, enforcing rules, and making difficult budgetary decisions can be stressful.

   Committee members are sometimes at the receiving end of criticisms and accusations when some residents are unhappy with certain conditions or disagree with decisions made.

2. Time demands: Being on the committee can be time-consuming, with frequent meetings and responsibilities that can become demanding, such as managing resident inquiries and overseeing projects that require dedicated time.
3. Being blamed for problems: If something goes wrong in the building, you may be blamed, even if it’s not your fault.

Ultimately, the decision of whether or not to get involved in building management is a personal one. The role is typically voluntary and does not come with financial compensation, and the reasons are also why some would say it’s a thankless “job”!

However, the perks can be significant and a great way to make a difference in your community.

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I’m Not Interested in Joining the JMB Or MC. Is There a Need to Attend The AGM?

Engaging in decision-making processes, especially during AGMs, is important. Critical decisions, from budget allocations to maintenance plans, are made during these meetings.

Attending AGMs allows you to influence these decisions directly. It provides a platform for transparency, offering insights into financial reports and upcoming projects. Moreover, AGMs are an excellent opportunity to build a sense of community and actually put a face and voice to other units’ occupants.

By attending AGMs, you can also address any concerns or issues, ensuring they are heard and acted upon. Most times, there are facts, points and views raised in the live AGM that could be eye-openers. At the very least, if you attended and voted, then you know that you’ve exercised your right, even if the vote doesn’t go your way.

These are some examples of issues in your building that could require your vote:

1. Maintenance fee and sinking fund: Decide whether an increase is needed and how much. Management will usually explain why the fee has to be increased. There can be various reasons as to why the fee has to be hiked up, such as new facilities being added, inflation, or even the fact that the initial fee was miscalculated. There must be a list showing the management’s expenses so that the residents know they’re not being overcharged. The bottom line is this: if the property’s management increases the maintenance fee with the approval of the majority of the residents, you will have to pay it. Failing to pay your maintenance fee can result in your management denying you some access to the property.
2. Security enforcements: These could include hiring a new security company, updating the visitor registration process, and adding new security tech or features.
3. Upkeep: If the property is more than 15 years old, more maintenance and thus funds, are required. Think about the lift conditions and facilities such as the pool, courts, and roads, among others. Residents could vote for what’s more urgent and the types of repairs that should be looked into first.
   Residents could also vote for the colour scheme if there’s a scheduled repainting effort.
4. The next JMB or MC committee: Not happy with the current JMB or MC? Nominate and vote for new members. Happy with the current JMB or MC? Nominate and vote for them! Essentially, you’ve got the power to decide who gets to represent you and defend your rights as an owner. Maybe you should be in the next JMB or MC, as the building could benefit from your skill set, too.

How Does the JMB Or MC Work with The Property Management Company?

Many JMBs or MCs hire a property management company (PMC), as these companies provide expertise in areas that can further enhance the building’s operations. Their main tasks often include:

1. Rent collection and maintenance: PMCs streamline rent collection, coordinate maintenance services, and handle repairs. This frees up the JMB’s or MC’s time and ensures tasks are completed promptly and professionally.
2. Security and housekeeping: PMCs can provide security personnel and housekeeping/cleaning staff to ensure the cleanliness and safety of common areas.
3. Legal and administrative tasks: PMCs assist the JMBs or MCs with legal matters like insurance claims and administrative duties like record-keeping, keeping tabs on units doing renovations, units that have arrears, and so on.

With a property management company on board, the JMB or MC can focus on strategic decision-making while ensuring that essential administrative tasks are handled properly.

JMBs or MCs also play an important role in representing other residents to ensure there isn’t any abuse of funds and that any job awards to external companies are done according to the set process, such as an open tender.

I Don’t Agree with the Increased Management Fee Rate. Can I Do Anything?

If you feel that the fee increase is unjustified, you can file a case against the management in the Strata Management Tribunal. This is a right given to various parties, including homeowners, under Section 107 of the SMA.

For example, the increased fee is due to tightened security, but rampant burglaries remain. Thus, you have some reason to believe that the fees are being misused.

Do note that if you take your case to the Tribunal, you’ll have to represent yourself, as lawyers are not allowed. The Tribunal often hears disputes involving tenants who don’t pay fees or management who don’t perform their duties. A detailed list of the types of disputes that the Tribunal can hear is in Schedule 4 of the SMA 2013, and the claims brought to the Tribunal cannot exceed RM 250,000.

You can go to court only if you have NOT taken your claim to the Tribunal before or if the Tribunal struck out your claim or it was withdrawn.

It’s always best to settle things amicably before taking legal action. So before you go to the Tribunal, try talking to your building’s management.

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Can I Sue My Building’s Management?

Yes, you can sue the JMB or MC if the property has been poorly maintained for a long time, there has been a delay in issuing strata title, the property has not been insured against damage, maintenance and sinking fund accounts have not been created, funds have been misappropriated, or an AGM has not been held to form new management.

The parties that can be sued are the developer, JMB, and MC, as they make all the decisions pertaining to the upkeep of the property. What about the people running the management office? They have been put there by the JMB or MC to carry out their duties on their behalf.

As pointed out in the previous question, going to court should always be the last resort after you have failed to secure help through other means.

I’m A JMB/MC Member. Can I Resign Before the Next AGM?

Yes, as it’s a voluntary job. Members are free to resign at any time. However, there are protocols in place where members can tender their resignations according to set procedures.

I Care About Building Management but Don’t Have the Time or Energy to Be Involved.

Honestly, most of us probably feel that way. But some of us have to step up to the plate. Imagine if no one cares to contribute or take turns being part of the JMB or MC; the property’s condition is likely to deteriorate quicker than usual.

By taking an active role, you can contribute to a more positive living experience for yourself and your neighbours, such as the following.

1. Property value: Proactive management, well-maintained facilities, responsible budgeting, and a focus on security can raise property values. Your involvement directly impacts the value of your investment. If the property is an investment for your children, it’s even more important to ensure that it retains its good environment and value for future generations.

2. Stronger community: Residents who are invested in the building’s well-being are more likely to look out for each other and create a positive social environment. A strong committee is also important to act as a check-and-balance against the hired property management company.
3. Empowered residents: Knowing you have a say in decisions and can contribute to positive changes fosters a sense of ownership.

When everyone watches out for everyone, such as keeping an eye and ear out for safety issues, non-compliance to house rules, hygiene issues, and others, it’ll only benefit everyone in the long run. Through the gotong royong spirit, all parcel owners will benefit from a better living environment!

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