Maintenance Fees and Sinking Fund: What You Need to Know

If you are buying or renting a property in Thailand, you may have heard of maintenance fees and sinking fund. These are two types of fees that you may have to pay as a property owner or tenant. But what are they exactly, and how do they affect you? In this blog post, we’ll explain what maintenance fees and sinking fund are, how often they are paid, what they cover, and how they are calculated. 🔧

What are Maintenance Fees?

Maintenance fees, also known as Common Area Management (CAM) fees, are fees that you pay to the Condominium Juristic Person (CJP), which is the legal entity that manages the common areas and facilities of the project. These fees are used to cover the upkeep, maintenance, and repair of the common areas, such as the swimming pool, the gym, the garden, the lobby, the elevator, the security system, and more. 

Maintenance fees vary depending on the project and the facilities. They can be paid monthly, quarterly, or semi-annually, depending on the agreement. Some projects may require you to pay in advance for a certain period of time. The rates usually range from 40 to 70 THB per square meter per month, but they can be higher or lower depending on the quality and quantity of the services provided. 

What is Sinking Fund?

Sinking fund is a reserve fund that is collected from the property owners when they buy a new property. It is used to cover major repairs and expenses that may occur in the future, such as replacing the roof, repainting the building, upgrading the fire system, etc. 

Sinking fund is paid only once during the purchase of the property. It is usually calculated as a percentage of the sale price or as a fixed amount per square meter. The typical rate is 500 to 800 THB per square meter, but it can vary depending on the project. The sinking fund is managed by the CJP and should be kept in a separate bank account from the maintenance fees. 

Sinking fund is not refundable when you sell your property. However, it may need to be replenished later if it runs out or if there are unexpected expenses that exceed the budget. This can be done by collecting additional contributions from the property owners or by increasing the maintenance fees. The decision to replenish the sinking fund should be made collectively by the property owners and approved by a majority vote at a general meeting. 

Why are Maintenance Fees and Sinking Fund Important?

Maintenance fees and sinking fund are important because they ensure that your property is well-maintained and safe. They also help to preserve and enhance the value of your property and your investment. By paying these fees regularly and responsibly, you can enjoy living in a comfortable and attractive environment with quality facilities and services. 

However, you should also be aware of your rights and obligations as a property owner or tenant. You should check the details and terms of the maintenance fees and sinking fund before you buy or rent a property. You should also monitor how these fees are used and managed by the CJP. You should ask for receipts, invoices, statements, and reports to verify that your money is spent wisely and transparently. If you have any questions or concerns, you should contact your CJP or your Siam Real Estate agent for assistance. 

How Can We Help You?

At Siam Real Estate, we have over 20 years of experience in helping foreign buyers and renters find their dream properties in Thailand. We can help you with all aspects of buying or renting a property, including:

• Finding the best properties for your needs and budget
• Negotiating the best prices and terms
• Explaining the legal and tax implications
• Advising you on maintenance fees and sinking fund
• Assisting you with registration and transfer
• Providing property management and maintenance services

We are here to protect your investment and make your buying or renting experience smooth and hassle-free. Contact us today and let us show you why we are the best real estate agency in Thailand.