Condo maintenance fees (CMF) are one of the key cost factors that affect your monthly expenses when renting a condo. These fees, which are usually collected from all condo owners, cover the costs of maintaining common areas such as lobbies, elevators, pools and gardens.
They also include services such as pest control and rubbish removal. Not knowing how much maintenance your condo will cost you might make you think twice about renting a place instead of buying one.
The majority of condos have maintenance fees of around $250 to $350 per month, depending on the share value of your unit; the bigger the floor space of your property, the higher the maintenance costs. For higher-end condos, this can come to over a thousand dollars per month. One must understand that the share of the condo expenses are not a fixed amount, but vary from apartment to apartment.
With this guide, however, you’ll soon see that owning a unit isn’t quite as costly as you might have thought before! We’ll discuss many things about CMFs in Singapore so that you can make an informed decision about renting or buying.
What is a Condo Maintenance Fee?
In Singapore, a condo maintenance fee is collected from all condo owners to cover the costs of maintaining common areas within the building. These fees usually include services such as pest control, rubbish removal and swimming pool care.
Ladies and gentlemen, welcome to Condo Maintenance Fees 101. This guide will explore the different types of CMFs that are in place in Singapore, how they work and what they cover. There are four types of CMFs: fixed-term, ongoing, service charge and association fees.
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Why do Condo Owners Pay Condo Maintenance Fees?
One of the most important reasons why you would have to pay for CMFs is because it helps maintain the condo. The more cost effective it is for condos to maintain their common areas and amenities, the more attractive it will be for new owners to rent out their units.
Another reason why you might have to pay maintenance fees is if you own a unit with a swimming pool or garden. These common areas will require extra maintenance from time to time which can be expensive.
Another reason that CMFs are typically collected in Singapore is if your unit comes with a gym or club room. These services are often required by condo associations and they’re usually included in the CMF fee so that you don’t need to worry about additional costs associated with them.
What does CMF cover in a condo building?
A condo maintenance fee is usually collected by the management company of a building. They are then deposited into a common fund that is used to cover the operating costs of the building, such as utilities, electricity and security. This ensures that all condo owners in the building do not bear these costs individually.
CMFs also cover services such as pest control and rubbish removal.
Additionally, they provide amenities like swimming pools and gyms which can be used by all unit owners of the building. Lastly, CMFs cover property taxes which the government charges for owning or managing a condominium property in Singapore.
CMFs vary across Singapore
CMFs also vary depending on the unit type of your condo. Condo units in high-rise buildings have higher CMFs than those in low-rise ones. The fee, which is usually collected monthly and can be paid in a lump sum at the end of the year, also varies depending on whether your unit is furnished or unfurnished.
In addition to these factors, you’ll find that some condos charge an additional security deposit for amenities such as swimming pools.
The cost of CMF in Singapore is also affected by the monthly rental rate for your unit. Generally speaking, the more expensive your unit is, the higher the CMF will be because there are more things that need to be maintained and repaired for it to function properly.
Who collects Condo Maintenance Fees in Singapore?
The condo management company is responsible for collecting CMFs from all owners. They then pass on the collected fees to the property management company, which in turn pays them to the contractors they have hired. The contractors repay the management company by charging a monthly maintenance fee.
Although you might be tempted to do your own maintenance work, it’s best to leave this job to professionals knowing that they are doing it better than you would.
Is it worth paying condo maintenance fees in Singapore?
First things first: if you’re thinking about paying condo maintenance fees, it makes sense to do so only if you plan on living there for a long time.
If you live in Singapore for less than 15 years, it’s best to find a place that doesn’t require maintenance fees. This is because the CMF will more than likely be cheaper in the future and you won’t have to pay out of pocket for the service.
Otherwise, most people would say that it is worth paying for condo maintenance fees in Singapore. The services provided by your CMF can be quite useful and convenient!
You will have pest control at your doorstep and your pool will always look clean with cleaners coming by regularly. Furthermore, these fees are collected from all residents so they contribute towards building up the community.
When you rent a condo, your monthly maintenance fees will usually cover things such as pest control, rubbish removal and the annual property tax. If you own a condo, you’ll be responsible for these costs yourself, meaning that you should save money by renting.
The key to understanding how much it will cost to maintain your unit is knowing what your CMF covers. Some companies, like those operated by SCG and the CPF Board, offer the Service and Maintenance Guide, which is an easy-to-follow guide to all maintenance fees in Singapore. You can find this guide in any public library or on their website.