Home › Buying guides › Maintenance fee and sinking fund in Malaysia: what they cover and how they're calculated

Buying guide · Ownership costs

Maintenance fee and sinking fund in Malaysia: what they cover and how they're calculated

Q: What is the difference between the maintenance fee and the sinking fund?

Maintenance fee · Sinking fund Keeping the common property in good condition · Painting or repainting the common property Cleaning · Buying equipment for the common property Insurance premiums · Renewing or replacing fixtures and fittings Minor painting · Upgrading and refurbishment (once a JMB is in place) Electrical wiring and main water tank inspection and repair · Other capital spending the JMB approves Audit, administration and managing agent fees Sections 10, 11 and 24 of Act 757. Each fund sits in its own account, held in trust for owners, not as the developer's money.

Q: Who collects the maintenance fee?

Stage · Collected and managed by · From 1. Developer's management period · The developer · Vacant possession until one month after the JMB is formed 2. Joint Management Body (JMB) · Owners and developer together · The first AGM, held within 12 months of vacant possession 3. Management Corporation (MC) · All owners · Once the strata register is opened During the developer's period, the developer pays the fee and sinking fund on units it has not yet sold.

Q: How is it different from assessment tax and quit rent?

Bill · Paid to · When (Johor Bahru) Maintenance fee + sinking fund · Developer, JMB or MC · As billed, usually monthly Assessment tax (cukai taksiran) · Local council, e.g. Majlis Bandaraya Johor Bahru (MBJB) · Twice a year: 1 Jan – 28 Feb and 1 Jul – 31 Aug Quit rent (cukai tanah) or strata quit rent (cukai petak) · Land office · 1 January – 31 May each year In states that have not yet introduced strata quit rent, quit rent is charged on the master title and owners pay their share through the management corporation.

Simon Wang San Teik · Licensed real estate negotiator, REN 56506 · Johor Bahru · Last verified 2026-09-25

Owners of strata property in Malaysia (condos, apartments, serviced apartments) pay two things: a maintenance fee, called "Charges" in the law, for day-to-day upkeep of the common property, and a sinking fund saved for major works such as repainting the building or replacing equipment. Under the Strata Management Act 2013 (Act 757), the sinking fund is 10% of the maintenance fee.

What is the difference between the maintenance fee and the sinking fund?

Maintenance fee	Sinking fund
Keeping the common property in good condition	Painting or repainting the common property
Cleaning	Buying equipment for the common property
Insurance premiums	Renewing or replacing fixtures and fittings
Minor painting	Upgrading and refurbishment (once a JMB is in place)
Electrical wiring and main water tank inspection and repair	Other capital spending the JMB approves
Audit, administration and managing agent fees

Sections 10, 11 and 24 of Act 757. Each fund sits in its own account, held in trust for owners, not as the developer's money.

How are the maintenance fee and sinking fund calculated?

The maintenance fee is shared in proportion to each unit's allocated share units, assigned by the developer's licensed land surveyor.
The sinking fund is 10% of the maintenance fee. Once a Joint Management Body (JMB) is formed, owners at a general meeting can raise it but not set it below 10%.

Who collects the maintenance fee?

Stage	Collected and managed by	From
1. Developer's management period	The developer	Vacant possession until one month after the JMB is formed
2. Joint Management Body (JMB)	Owners and developer together	The first AGM, held within 12 months of vacant possession
3. Management Corporation (MC)	All owners	Once the strata register is opened

During the developer's period, the developer pays the fee and sinking fund on units it has not yet sold.

What happens to owners who don't pay?

Payment is due within 14 days of a notice.
Developer stage: interest at 10% a year, charged daily.
JMB stage: the JMB sets the rate, up to 10% a year.
A JMB can recover arrears as a debt: a written demand of at least 14 days, then a warrant to seize the owner's movable property.

Where do owners take a dispute?

Owners can file with the Strata Management Tribunal, now part of the Housing and Strata Management Tribunal under the Ministry of Housing and Local Government (KPKT). According to KPKT's FAQ, claims go up to RM250,000 and the filing fee is RM100 for residential or RM200 for commercial or industrial property. Filing is online at etps.kpkt.gov.my.

How is it different from assessment tax and quit rent?

Bill	Paid to	When (Johor Bahru)
Maintenance fee + sinking fund	Developer, JMB or MC	As billed, usually monthly
Assessment tax (cukai taksiran)	Local council, e.g. Majlis Bandaraya Johor Bahru (MBJB)	Twice a year: 1 Jan – 28 Feb and 1 Jul – 31 Aug
Quit rent (cukai tanah) or strata quit rent (cukai petak)	Land office	1 January – 31 May each year

In states that have not yet introduced strata quit rent, quit rent is charged on the master title and owners pay their share through the management corporation.

Related guides

Serviced apartment vs condo: both are strata property and both carry maintenance fees.
Tenancy agreement stamp duty: another cost when you let the unit.

Looking at a Johor Bahru project and want to know the maintenance fee per square foot, the sinking fund on top, and whether the developer or a JMB is in charge? Tell me the project and I'll check with the management office.

Ask Simon on WhatsApp

SOURCES

Strata Management Act 2013 (Act 757), English text hosted by Perbadanan Putrajaya: sections 2, 9–12, 17, 21, 23–25, 33–35. Document
Ministry of Housing and Local Government (KPKT): Handbook Pengurusan Strata 2.0. Document
KPKT: Strata Management Tribunal FAQ (claim limit, filing fees). Page
KPKT: about the Strata Management Tribunal (updated 13 August 2025). Page
Department of Director General of Lands and Mines (JKPTG) FAQ Q24: the three payments of a strata owner. Page
JKPTG FAQ Q31: what a management corporation is. Page
Majlis Bandaraya Johor Bahru (MBJB): assessment tax page, billing periods. Page
MBJB FAQ: sinking fund at 10%, two accounts, quit rent payment period. Page

General information only, not legal advice. Actual charges are as billed by the developer, JMB or MC, and the gazetted Act prevails; see the verification date above.