Every condo owner pays them, but few understand them. Here is what the maintenance fee and sinking fund are, how they’re calculated, and what they cover.
General guidance for 2026 — not legal advice. Strata management is governed by the Strata Management Act 2013; for disputes consult your COB or a lawyer. Renovating a strata unit? Ask us →
Maintenance fee and sinking fund are the two recurring strata charges every parcel owner pays under the Strata Management Act 2013 →. They keep the building running and funded for the future — and unpaid charges are the most common strata dispute.
This funds the day-to-day operation of common property: security, cleaning, landscaping, lift maintenance, common-area electricity and water, management staff, and building insurance. It is billed monthly and set by the management based on the annual budget approved at the AGM. The charge must be sufficient to cover all running costs — a management that sets it too low will run into deficit.
The sinking fund is a reserve for major, infrequent capital expenditure — repainting the building, replacing lifts or pumps, major waterproofing, upgrading equipment. By law it is contributed in addition to the maintenance charge, commonly at 10% of the maintenance charge. The sinking fund is held separately and cannot be used for day-to-day expenses.
A healthy sinking fund is a sign of a well-run building — one that is “saving up” for big works rather than hitting owners with special levies. Before buying a subsale unit, ask for the sinking fund balance.
| Aspect | Maintenance (service) charge | Sinking fund |
|---|---|---|
| Purpose | Day-to-day running costs | Major capital works reserve |
| Typical rate | Set by management budget | Around 10% of maintenance charge |
| Billed | Monthly | Monthly (alongside maintenance charge) |
| Account | Maintenance account | Separate sinking fund account |
| Can be used for daily expenses? | Yes | No — capital works only |
| Examples of use | Security, cleaning, lifts, insurance | Repainting, lift replacement, waterproofing |
Your charge is not a flat fee — it is apportioned by share units allocated to each parcel (based on floor area, type and accessory parcels like car parks). More share units = a larger share of the charges and more voting weight.
Your monthly charge ≈ your share units × the rate per share unit
For example, a 1,200 sq ft unit with more share units pays more than an 800 sq ft unit in the same building. See our share units guide → for a full explanation.
| Item | Maintenance charge covers? | Sinking fund covers? |
|---|---|---|
| Security & cleaning | ✓ Yes | ✗ No |
| Lift & pump servicing | ✓ Yes (routine) | ✓ Yes (replacement) |
| Common utilities & insurance | ✓ Yes | ✗ No |
| Management & staff | ✓ Yes | ✗ No |
| Repainting the building | ✗ No | ✓ Yes |
| Major waterproofing | ✗ No | ✓ Yes |
| Your interior renovation | ✗ No | ✗ No |
| Your contents & belongings | ✗ No | ✗ No |
Neither covers inside your unit — your own renovation, repairs and contents are your responsibility. See condo renovation cost →.
Rates are quoted per square foot of share area per month — commonly anywhere from around RM0.20 to RM0.50+ psf depending on facilities. A high-facility condo with pools, gym, concierge and grand lobby costs more to run than a simple walk-up flat. A worked example:
Your actual bill depends on your share units and the rate set by management — which is why two units of similar size may pay slightly different amounts if their share-unit allocations differ.
The management prepares an annual budget showing expected expenses — security, cleaning, lift servicing, insurance premiums, management fees, utilities and reserves — and the rate per share unit needed to fund them. This is tabled at the AGM → for owners to approve. Owners can question line items, request explanations, and vote on the budget. A well-run building presents audited accounts alongside the budget so owners can see how last year’s money was spent before approving next year’s rate.
If the budget is under-set, a deficit builds up and the management may need a special levy; if it is over-set, there is a surplus. Either way, owners have a statutory right to scrutinise the accounts and vote. Engaging with the budget process is one of the most direct ways to protect your investment.
Arrears carry late-payment interest (commonly up to 10% per annum, as resolved by the management), and the management can issue a statutory demand, file with the Strata Management Tribunal →, and ultimately recover the debt — including attaching movable property. You also lose your right to vote at meetings. See service-charge defaulters →.
This guide cites Malaysian legislation and official bodies. Always confirm current rates and rules with the official source:
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