Maintenance fees in a rental: quick answer
In Malaysia, maintenance fees and sinking fund payments are the legal responsibility of the unit owner — not the tenant. The JMB or MC will always bill and pursue the owner on record under the Strata Management Act 2013, regardless of what the tenancy agreement says about who is supposed to pay.
The practical question is not who is legally liable — the answer is clear. The question is how to structure the arrangement so that a tenant's delayed payment never puts the owner's standing with the management body at risk.
This guide explains the law, ranks the three common payment arrangements by risk, shows what the management body can do if fees are not paid, and covers which disputes go to the Strata Management Tribunal versus the civil courts.
What the law says: who is legally liable for maintenance fees?
The Strata Management Act 2013 (Act 757) places the obligation to pay maintenance charges and sinking fund contributions squarely on the parcel owner. Section 25(1) is clear — the JMB or MC raises the bill against the owner, not the occupant. A tenant who agreed to pay in the tenancy agreement is not a party to that obligation.
The management body's relationship is with the owner on the strata roll. Your tenant is an occupant. If the tenant misses a month, the management office does not chase the tenant — it sends the demand to you, and the arrears notices, late-payment penalties, and enforcement action all attach to your owner record.
This asymmetry is the single biggest misunderstanding in the market. Even if the tenancy agreement says "tenant pays maintenance fees," the owner cannot transfer the statutory liability. The arrangement in the TA is a private matter between landlord and tenant; it does not bind the JMB or MC.
The three common arrangements — ranked by risk
The safest arrangement is to bundle the maintenance fee into the monthly rent and pay the management body yourself. Any arrangement that depends on the tenant initiating a payment to a third party introduces a gap between the tenant's action and your standing with the management body.
| Arrangement | How it works | Risk to owner | Recommended? |
|---|---|---|---|
| Bundle into rent — owner pays management | Maintenance fee included in the rent; owner pays JMB/MC directly each month | Lowest — owner controls one payable; no dependency on tenant | Yes — default recommendation |
| Tenant reimburses owner | Tenant pays owner; owner pays JMB/MC after collecting | Medium — owner must collect first; risk of short payment or delay | Acceptable if the TA specifies the exact amount and due date |
| Tenant pays management directly | Tenant sends payment straight to the management office | Highest — owner has zero visibility until an arrears demand arrives | Avoid — the management body has no obligation to inform the owner until after arrears build up |
The "tenant pays direct" arrangement is the one that generates the most complaints on landlord forums. The management office records the arrears against the owner's lot number, not the tenant's name. By the time the owner hears about it, the penalties may already have accrued for several months.
What is a sinking fund, and does it follow the same rules?
The sinking fund is a long-term capital reserve for major repair and replacement works — lift overhauls, roof resurfacing, repainting. The minimum contribution is 10% of the maintenance charge rate, set by the JMB or MC. The owner is liable for the sinking fund in the same way as for maintenance charges; it is not the tenant's building equity.
| Charge | What it funds | Who management bills | Minimum rate | Can it pass to tenant? |
|---|---|---|---|---|
| Maintenance / service charge | Day-to-day common-area costs: security, cleaning, lifts, shared utilities | Owner | Set by JMB/MC at budget rate | Yes, by private agreement — but owner remains liable to management |
| Sinking fund | Long-term capital reserve: lift replacement, roof, repainting | Owner | Not less than 10% of maintenance charge (SMA 2013) | Normally stays with owner; it is building-level equity, not the tenant's |
Some landlords only ask about the monthly maintenance charge and forget the sinking fund. Both appear on the JMB or MC billing statement. If the sinking fund arrears accumulate, enforcement action is the same as for maintenance charges.
Who manages the building — and who actually deals with the owner?
The management body changes as the development matures. For the first year or so after vacant possession, the developer manages. Once the JMB is constituted it takes over; the MC follows after strata titles are issued. Your tenant is never a party to any of these bodies. All notices and bills come to you as the owner on record.
| Management body | Stage | Governed by | Who they deal with |
|---|---|---|---|
| Developer | Pre-handover; first ~12 months after vacant possession | SMA 2013 (preliminary period) | All parcel owners |
| JMB (Joint Management Body) | Post-handover, before strata titles are issued | SMA 2013 Part III | Registered parcel owners only |
| MC (Management Corporation) | After strata titles are issued | SMA 2013 Part IV | Registered parcel owners only |
| Managing agent / management office | Appointed by JMB or MC to run daily operations | Contract with JMB/MC | Operational dealings — the JMB or MC remains the legal party |
Understanding which body is in charge matters when you want to challenge a fee, attend an AGM, or raise a maintenance complaint. The developer's managing committee, the JMB committee, and the MC committee each have different powers and accountability mechanisms under SMA 2013.
What can the management body do if maintenance fees are not paid?
Under section 34(1) of the Strata Management Act 2013, the JMB or MC must first serve a written demand giving the owner at least 14 days to pay. If still unpaid, the management body may sue in court, file a claim at the Strata Management Tribunal, or obtain a warrant of attachment to seize the owner's moveable property inside the parcel (section 34(2) and section 35).
The written demand is mandatory before enforcement. A notice that gives less than 14 days does not comply with section 34(1). If you receive a demand notice, the 14-day window is the period to pay before formal action begins.
An owner who ignores the demand notice commits an offence under section 34(3): a fine up to RM5,000, or up to 3 years' imprisonment, or both — plus a continuing offence penalty of up to RM50 per day while the default continues. These consequences attach to the owner on record, not the tenant.
The management body cannot lawfully change your unit's access card codes, clamp a vehicle registered to your lot, or remove common-facility access as a primary enforcement tool unless those remedies are expressly provided for in the by-laws and properly applied. Enforcement is through the courts or the Strata Management Tribunal.
Which dispute goes where: the Strata Management Tribunal versus the civil courts
The Strata Management Tribunal handles disputes between owners and the management body — unpaid maintenance charges, management failures, by-law enforcement. The civil courts handle disputes between landlord and tenant — rent arrears, deposit, breach of the tenancy agreement. These are separate tracks and must not be confused.
A landlord who has a dispute with the JMB or MC goes to the Strata Management Tribunal (if the claim does not exceed RM250,000 under section 105(1) of SMA 2013). A landlord who has a dispute with a tenant about rent arrears goes to the Magistrates' Court (claims up to RM100,000), using the small-claims procedure for claims up to RM5,000 where no lawyer is required.
The Strata Management Tribunal cannot hear a private landlord-versus-tenant dispute about rent or deposit. Those are tenancy agreement matters, not strata management matters.
| Dispute type | Correct forum | Key limit |
|---|---|---|
| Owner vs JMB/MC — unpaid maintenance charges, management failures, by-law enforcement | Strata Management Tribunal (SMA 2013 s.105) | Claims up to RM250,000; no land-title questions |
| Owner vs JMB/MC — claim exceeds RM250,000 or involves land title | Civil court (High Court) | No Tribunal jurisdiction above RM250,000 or on title questions |
| Landlord vs tenant — rent arrears or deposit (up to RM5,000) | Magistrates' Court small-claims procedure (Order 93, Rules of Court 2012) | No lawyer required; RM5,000 limit |
| Landlord vs tenant — rent arrears or deposit (RM5,000–RM100,000) | Magistrates' Court | Lawyer usually engaged |
| Landlord vs tenant — landlord-and-tenant or distress action | Sessions Court (unlimited landlord-tenant jurisdiction) | Distress Act 1951 applies for rent arrears |
Failing to comply with a Strata Management Tribunal award is a criminal offence: a fine up to RM250,000, or up to 3 years' imprisonment, or both, plus up to RM5,000 per day for a continuing offence (section 123 of SMA 2013).
The SPEEDHOME approach to maintenance fees
Bundling the maintenance fee into rent and paying the management body directly is the arrangement SPEEDHOME recommends. It keeps the owner in full control of the payable, removes the dependency on tenant action, and means an arrears notice never arrives as a surprise.
For landlords managing a condo or serviced apartment on the SPEEDHOME platform, the tenancy agreement specifies the maintenance fee arrangement, and the monthly rent is structured to cover it. SPEEDHOME's Experian-powered tenant screening reduces the risk of the kind of payment default that creates cash-flow gaps at the owner level.
Zero Deposit is a managed rental-risk system available on qualifying SPEEDHOME units. It is not a financial guarantee product, and not every unit qualifies. It replaces the upfront cash deposit; in the rare case of severe end-of-tenancy damage the recoverable amount can be limited.
For the broader JMB and MC dispute picture — access-card arrangements, by-law challenges, Airbnb restrictions — the JMB and MC condo management guide covers those angles in depth. For house rules to include in the tenancy agreement, the landlord house-rules guide walks through what to include. For landlords ready to list their unit or switch to a managed approach, SPEEDHOME's landlord service is the close.
FAQ
Who pays the maintenance fee — the landlord or the tenant in Malaysia?
The legal obligation under the Strata Management Act 2013 is the owner's. The JMB or MC bills the owner, not the tenant. A landlord can include maintenance fees in the rent or ask the tenant to reimburse them, but cannot transfer the statutory liability to the tenant — if the tenant does not pay, the management body still enforces against the owner.
The safest arrangement is to bundle the fee into the rent figure and pay the management body yourself each month. Any arrangement that depends on the tenant initiating a direct payment to the management office creates a visibility gap.
Can I tell my tenant to pay the maintenance fee directly to the management office?
You can ask the tenant to pay direct, but this is the highest-risk arrangement. The management body records arrears against your owner lot, not the tenant's name, and has no obligation to inform you immediately. By the time you receive an arrears notice, penalties may already have accumulated for several months.
If you choose this arrangement, spell out the exact amount and due date in the tenancy agreement and ask the management office to copy you on all billing statements.
What happens if maintenance fees are not paid?
Under section 34(1) of the Strata Management Act 2013, the management body must serve a written demand giving at least 14 days to pay. If the amount remains unpaid, the JMB or MC may sue in court, file a claim at the Strata Management Tribunal, or obtain a warrant of attachment to seize moveable property inside the parcel. Non-payment is also an offence that can result in a fine up to RM5,000 or imprisonment.
The owner named on the parcel register bears these consequences, not the tenant — even if the tenancy agreement placed the obligation on the tenant.
What is the Strata Management Tribunal and when can a landlord use it?
The Strata Management Tribunal is the correct forum for disputes between a parcel owner and the JMB or MC — for example, excessive fee increases, management failures, or disputed by-law enforcement. It handles claims up to RM250,000 under section 105(1) of SMA 2013. It does not hear landlord-versus-tenant disputes about rent or deposit — those go to the civil courts.
A landlord who has been wrongly charged, or whose management body is failing to maintain the building, can file directly at the Tribunal without a lawyer. The process is cheaper and faster than High Court litigation for disputes in scope.
What is the difference between a maintenance fee and a sinking fund?
The maintenance charge funds day-to-day common-area operations: security, cleaning, lifts, shared utilities. The sinking fund is a long-term capital reserve for major replacement works — lift overhauls, roof repairs, repainting. The minimum sinking fund contribution is not less than 10% of the maintenance charge rate, set by the JMB or MC. Both are the owner's liability under SMA 2013.
Neither can be "waived" by a private tenancy arrangement. If your building is a newly completed development with a low provisional maintenance rate, expect the JMB to revise the rate once the actual running costs are known.
Can the condo management ban Airbnb or short-term rentals in my unit?
A JMB or MC can pass a by-law prohibiting short-term rental of units in the building, and Malaysian courts have upheld such by-laws when properly enacted. Whether short-term letting is permitted depends on each building's individual by-laws. If your building has a by-law against it, operating a short-term rental is a breach of the by-law and can expose the owner to enforcement action by the management body.
Check your building's by-laws — the JMB or MC is obliged to provide a copy on request. If the by-law exists and you disagree with it, the challenge route is the AGM (to vote it down) or the Strata Management Tribunal (to challenge its validity), not simply ignoring it.