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Fri, Feb 20, 2009
my paper
Condo managing agents not always cost-effective

I REFER to the letter, 'Condo managing agent can provide quick solutions' (my paper, Feb 18).

Read all the stories:
» Condos should look to cut costs

While I agree that condominiums with between 100 and 200 units would find the services of a managing agent more cost effective than self-management, this is not the case for other condos. Condos with fewer than 100 units can ill afford the luxury of a professional managing agent, and may end up hiring mediocre agents.

Meanwhile, condos with more than 200 units have found the cost of hiring a managing agent to be an extra burden, as these estates must engage a full-time condo executive or manager.

Frequently, to accommodate the managing agent's fees, the condo had to settle for a third-rate site manager, resulting in unsatisfactory performance.

Even if they were to engage a managing agent to screen service providers, a condo's council members are still required to make the final decision on who to hire. Under the law, they cannot delegate away this responsibility.

Furthermore, managing agents come and go, with many estates changing their managing agents every year. In contrast, council members are owners of units in the condominium, and therefore have a vested interest in the estate.

Therefore, some of the bigger estates - such as Bishan 8, Woodsvale executive condominium and Bullion Park - have done away with managing agents.

Smaller estates - such as Eng Kong Green, Dalvey Court, Enfu Mansion, Paddy Green - also do without their services.

Help is readily available to these estates. The Building and Construction Authority can advise on issues relating to the BuildingMaintenance and Strata Management Act.

There are also many websites that offer advice on do-it-yourself condo management, such as http://www.strataman. blogspot.com

Mr James Tan


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