--- title: "Strata Maintenance Fees & Sinking Fund Malaysia 2026: Calculation Guide" description: "How strata maintenance fees and the sinking fund are calculated in Malaysia in 2026: share units x rate, a sinking fund of at least 10% of the charges, 10% p.a. maximum late interest, and what the JMB or MC can do to defaulters under the Strata Management Act 2013." datePublished: "2026-07-27" dateModified: "2026-07-27" canonical: "https://www.superhomes.my/resources/strata-maintenance-fees-sinking-fund-malaysia-2026" --- # Strata Maintenance Fees & Sinking Fund Malaysia 2026: Calculation Guide **Strata Maintenance Fees & Sinking Fund Malaysia 2026: Calculation Guide** In Malaysia, your monthly strata bill is your parcel's **allocated share units multiplied by the rate per share unit** set for the building, plus a **sinking fund contribution of at least 10% of those charges**. Both are compulsory under the **Strata Management Act 2013 (Act 757)**, are due within 14 days of the bill, and late payment can attract interest of up to 10% a year. Living in a strata-titled property, such as a condominium, serviced residence, apartment or gated landed scheme, means sharing the cost of security, lifts, pools, cleaning and insurance with every other owner. The Act calls the monthly maintenance fee the **Charges**, and it keeps them separate from the **sinking fund**, which is saved for big-ticket repairs. This 2026 guide explains the formula, what each fund may be spent on, how to estimate your bill, the powers a Joint Management Body (JMB) or Management Corporation (MC) has against defaulters, and how to check a building's finances before you buy. --- ## At a Glance: Maintenance Fee vs. Sinking Fund Comparison | Feature | Service Charge / Maintenance Fee ("Charges") | Sinking Fund | | :--- | :--- | :--- | | **Legal Purpose** | Day-to-day running of the common property (security, cleaning, landscaping, lift servicing, insurance, management fees) | Capital expenditure: repainting, replacing fixtures and fittings, buying equipment, upgrading and refurbishing common property | | **How the Amount Is Set** | In proportion to allocated share units; set by the JMB from time to time, or by the MC at a general meeting | **10% of the Charges**, or a higher figure set at a general meeting; never less than 10% | | **Payment Deadline** | Within 14 days of receiving the notice (bill) | Billed and due together with the Charges | | **Late Interest** | Up to **10% per annum** | Up to **10% per annum** | | **Legal Authority** | Strata Management Act 2013, ss.25 and 60 | Strata Management Act 2013, ss.24, 25, 51 and 61 | (Source: Strata Management Act 2013, ss.24, 25(3)–(6), 51, 60(3) and 61(3); checked 30 Sep 2026.) The Act applies only in Peninsular Malaysia and the Federal Territory of Labuan (s.1(2)). Sabah and Sarawak have their own state strata laws, so the section numbers in this guide do not apply there. --- ## 1. How Maintenance Fees Are Calculated: The Share Unit Formula Your share of the building's costs follows your parcel's **allocated share units (*unit syer*)**, not simply its floor area. Before any parcel is sold, the developer must file a schedule of parcels with the Commissioner of Buildings (COB), and the share units are worked out with the formula in the First Schedule of the Act until the strata titles are issued and the Land Office approves the final figures under the Strata Titles Act 1985. ### The Standard Share Unit Formula `Share units = (Parcel area x Weightage factor for the parcel type x Weightage factor for the floor) + (Accessory parcel area x Weightage factor for the accessory parcel)` Where: - **Parcel-type weightage** reflects how intensively the parcel uses the common property: a residential unit, a shop and an office carry different factors. - **Floor weightage** reflects whether the parcel takes up a whole floor or shares one. - **Accessory weightage** applies to parcels such as private car parks, air-con ledges or yards attached to your unit. (Sources: Strata Management Act 2013, s.8 and First Schedule; Penang Land and Mines Office, *Share Units Formula* guideline; checked 30 Sep 2026.) Your share units are printed in the SPA's schedule of parcels and on the strata title. Ask the management office if you cannot find them. ### Example Calculation - **Allocated share units for unit A-12-03:** 240 share units. - **Approved rate:** RM1.20 per share unit per month. - **Monthly Charges:** 240 x RM1.20 = RM288.00. - **Monthly sinking fund (10%):** RM288.00 x 10% = RM28.80. - **Total monthly bill:** **RM316.80 a month** (RM3,801.60 a year). The rate per share unit is set to cover the building's approved budget: total annual Charges needed, divided by total share units, divided by 12. --- ## 2. What a Typical Unit Pays: SuperHomes Worked Example The median strata home for sale in Kuala Lumpur and Selangor on SuperHomes has a built-up area of **1,000 sq ft** (listings with a stated size, n=49), and the median asking price of strata homes there is **RM375,000** (n=266; SuperHomes listings, Sep 2026). Many buildings describe their charges as an equivalent rate per square foot. The table below shows what a 1,000 sq ft unit would pay at three illustrative rates. These rates are examples for the arithmetic, not a survey of Malaysian buildings; your building's actual rate is in its latest AGM budget and your bill. | Illustrative Charges rate | Charges / month | Sinking fund (10%) / month | Total / month | Total / year | | :--- | :--- | :--- | :--- | :--- | | RM0.25 per sq ft | RM250 | RM25 | RM275 | RM3,300 | | RM0.35 per sq ft | RM350 | RM35 | RM385 | RM4,620 | | RM0.45 per sq ft | RM450 | RM45 | RM495 | RM5,940 | *SuperHomes calculation. Built-up area and asking price: median of active, consent-visible KL and Selangor strata listings (condominium, serviced residence, apartment, flat), September 2026.* At RM385 a month, strata costs add about RM4,620 a year to a RM375,000 home, about 1.2% of the price every year. Budget for it alongside your loan: our [total cost of buying property guide](/resources/total-cost-buying-property-malaysia-2026) puts it next to quit rent, assessment and insurance. Compare buildings in [KL City Centre](/area/kuala-lumpur/kl-city-centre) or [Bukit Jalil](/area/kuala-lumpur/bukit-jalil), where most listings are strata, and ask each agent for the current bill. --- ## 3. The Legal Purpose of the Sinking Fund The sinking fund must sit in its own bank account and may be used **only** for capital expenditure on the common property. For a JMB, section 24(2) of the Act limits it to: - painting or repainting any part of the common property; - buying movable property for use with the common property; - renewing or replacing fixtures and fittings in the common property; - upgrading and refurbishing the common property; and - any other capital expenditure the JMB deems necessary. Section 51(2) sets the same list for a management corporation. In practice that means exterior repainting, lift modernisation, replacing water pumps and fire-fighting systems, and major waterproofing. Routine servicing contracts, salaries and utility bills come out of the maintenance account, not the sinking fund. A healthy sinking fund is what stops a special levy. If a 20-year-old building needs its lifts replaced and the fund is thin, owners are asked to pay a one-off contribution on top of the monthly bill. --- ## 4. Legal Powers of JMB / MC Against Defaulting Owners Charges and sinking fund contributions are due within **14 days** of the notice (s.25(5)). If they stay unpaid, the JMB or MC can: ### Power 1: Charge Late Payment Interest of Up to 10% a Year Interest runs on the unpaid sum at a rate set by the JMB or MC, capped at **10% per annum** (ss.25(6)(b) and 60(3)(c)). On RM3,801.60 of arrears left unpaid for a full year, that is at most about RM380. ### Power 2: Serve a Written Demand, Then Prosecute The body can serve a written notice demanding payment within at least 14 days (s.34(1) for a JMB, s.78(1) for an MC). An owner who ignores it without reasonable excuse commits an offence: a fine of up to **RM5,000**, imprisonment of up to **three years**, or both, plus up to **RM50 a day** for a continuing offence after conviction (ss.34(3) and 78(3)). ### Power 3: Claim at the Strata Management Tribunal or in Court The body can file a claim for the arrears in court or at the **Strata Management Tribunal**, which hears claims of up to **RM250,000** (s.105(1)). ### Power 4: Attach Movable Property Instead of suing, the body can apply to the **Commissioner of Buildings** for a warrant of attachment over the defaulter's movable property (s.35 for a JMB, s.79 for an MC). The warrant is executed in the presence of the COB's officer, and if the arrears are not paid within 14 days of attachment the goods can be auctioned. A tenant who pays the owner's arrears to avoid attachment may deduct that sum from the rent (s.35(5)). ### A Note on Access Cards and Facilities Some JMBs and MCs deactivate access cards or bar defaulters from facilities under their additional by-laws. The Act's own recovery routes are the ones above; if your access is cut, ask which by-law the body relies on, and take a dispute to the Strata Management Tribunal. (Source: Strata Management Act 2013, ss.25, 34, 35, 60, 78, 79 and 105; checked 30 Sep 2026.) --- ## 5. Who Decides the Rates, and How to Challenge Them | Stage of the building | Who manages | How Charges are set | | :--- | :--- | :--- | | From vacant possession until the JMB is formed | Developer | Developer, in proportion to share units | | After the first AGM, before strata titles and the MC | Joint Management Body (JMB) | Determined by the JMB from time to time (s.25(3)) | | After strata titles are issued and the MC's first AGM | Management Corporation (MC) | Set at a general meeting of the MC (s.60(3)) | The developer also pays Charges and sinking fund for every unsold parcel, at the same rate a buyer would (s.25(2)). If you think Charges were set unlawfully or are being spent outside their purpose, raise it at the AGM first, then with the COB, and finally as a claim at the Strata Management Tribunal. --- ## 6. How to Check a Building's Finances Before You Buy 1. **Ask for the latest audited accounts and AGM minutes.** They show the balance in both funds and any planned special levy. 2. **Check the collection rate.** A building where many owners do not pay struggles to maintain lifts and security, whatever the monthly rate. 3. **Compare the sinking fund balance with the building's age.** An older block with a small reserve and no repainting in years is a warning sign. 4. **Get a written statement that the unit has no arrears.** Under an MC, unpaid Charges and sinking fund can be recovered from the owner's successor-in-title (s.61(4)), so your lawyer should confirm the seller has paid up to completion. 5. **Read the house rules and additional by-laws.** They cover renovation deposits, short-term letting rules and facility bookings. For how JMBs and MCs are formed and run, see our [JMB vs MC guide](/resources/jmb-vs-mc-strata-malaysia-2026). --- ## 7. Common Mistakes Owners Make 1. **Comparing buildings on the per-square-foot figure alone.** A cheap rate with a thin sinking fund often means a special levy later. 2. **Paying Charges but not the sinking fund.** Both are due together, and arrears in either can be recovered. 3. **Assuming a rate rise needs every owner's consent.** Under a JMB the body can set the Charges; your remedy is the AGM or the Tribunal, not withholding payment. 4. **Letting a tenant handle the bill.** The owner stays liable to the JMB or MC. 5. **Ignoring the 14-day window.** Interest and demand notices can follow soon after. --- ## Frequently Asked Questions (FAQ) ### Q: What is a sinking fund in a condo? It is a reserve that every owner pays into each month, alongside the maintenance charges, to cover major future works such as repainting the building, replacing lifts or upgrading common facilities. Under the Strata Management Act 2013 it must be kept in a separate account and is at least 10% of the charges. ### Q: How is the strata maintenance fee calculated in Malaysia? Your allocated share units multiplied by the building's rate per share unit, then plus a sinking fund of at least 10% of that amount. A unit with 240 share units at RM1.20 per share unit pays RM288 in charges and RM28.80 in sinking fund, RM316.80 a month. ### Q: Can a Joint Management Body (JMB) increase maintenance fees without owner approval? Under a JMB, the Act lets the joint management body determine the charges from time to time in proportion to share units, so a general-meeting vote is not strictly required, although many buildings table increases at the AGM. Under a management corporation, the charges are set at a general meeting. A sinking fund above 10% must be decided at a general meeting in both cases. ### Q: Who pays maintenance fees for unsold units? The developer. It must pay the charges and sinking fund for every parcel it has not sold, at the same rate a purchaser would pay (section 25(2) of the Act). ### Q: What happens to accumulated sinking funds when I sell my condo? The money stays in the building's sinking fund account. It is not refunded to a selling owner, because it belongs to the JMB or MC for the whole building. A well-funded reserve makes a unit easier to sell, since buyers face less risk of a special levy. ### Q: What is the penalty for not paying maintenance fees? Late interest of up to 10% a year, a written demand, then possible prosecution with a fine of up to RM5,000, imprisonment of up to three years or both. The JMB or MC can also claim the arrears at the Strata Management Tribunal or apply to the Commissioner of Buildings for a warrant to attach and auction your movable property. ### Q: Are maintenance fees the same in Sabah and Sarawak? The principle is similar, but the Strata Management Act 2013 applies only in Peninsular Malaysia and Labuan. Sabah and Sarawak have their own state strata laws, so check the rules for your building's state. --- ## Related Resources - **Dispute Resolution:** Read our [Strata Management Dispute Malaysia](/resources/strata-management-dispute-malaysia) guide. - **Developer Claims:** Explore [Claim Defects Developer Malaysia](/resources/claim-defects-developer-malaysia). - **Buying Checklist:** Learn [New Launch Checklist Malaysia](/resources/new-launch-checklist-malaysia).