Buying Guide
Maintenance Fees & Sinking Fund at a Serviced Residence: What Owners Should Know
Quick answer
Maintenance fees pay for a building's day-to-day running — security, cleaning, lifts, pool and common utilities — while the sinking fund saves for future capital works. Under Malaysia's Strata Management Act 2013, charges are apportioned by share units, and the sinking fund is at least 10% of the maintenance charge. Late payment interest is capped at 10% a year.
In this guide
- Key takeaways
- What is the difference between maintenance fees and the sinking fund?
- How are maintenance fees calculated under the Strata Management Act?
- How much is the sinking fund?
- Worked examples for Twin Tower unit sizes
- How do maintenance fees affect your rental yield?
- What do your fees pay for at Twin Tower Residence?
- How to read a maintenance statement
- What is a special levy?
- Who manages the building: developer, JMB or MC?
- What happens if maintenance fees are paid late?
- What should I check about fees before buying a Twin Tower unit?
- Scenarios: how owners plan for fees
- Conclusion
- Sources
Maintenance fees and the sinking fund are the two monthly charges every owner at a serviced residence such as Twin Tower Residence pays. Together they keep the pool, gym, lifts, security and common areas running today, and fund the bigger works the building will need in the future. Understanding how they are calculated — and what the Strata Management Act 2013 says about them — helps you budget accurately and calculate your true rental yield.
This guide explains the rules in plain language, shows worked examples for each Twin Tower unit size, and lists what to check before you buy.
Key takeaways
- Maintenance charges pay for day-to-day running costs; the sinking fund is reserved for capital works such as repainting, replacing equipment and upgrades.
- Under the Strata Management Act 2013, charges are based on each parcel’s share units, not set by a national per-square-foot tariff.
- The sinking fund contribution is 10% of the maintenance charges at minimum; owners can approve a higher rate at a general meeting.
- Late payment can attract interest of up to 10% a year, and arrears can affect voting rights at general meetings.
- Always factor both charges into your net rental yield, and ask for the latest statement before you buy.
What is the difference between maintenance fees and the sinking fund?
| Maintenance charges | Sinking fund | |
|---|---|---|
| Purpose | Day-to-day running of the building | Future capital expenditure |
| Typical uses | Security, cleaning, landscaping, lift and pool servicing, common-area electricity and water, insurance, management staff | Repainting the building, replacing lifts, pumps or equipment, renewing fittings, upgrading or refurbishing common property |
| How much | Based on share units and the building’s annual budget | At least 10% of the maintenance charges |
| Account | Maintenance account | Separate sinking fund account |
Think of maintenance charges as the building’s operating budget and the sinking fund as its savings account. A well-funded sinking fund means major works can be paid for without large one-off special levies on owners.
How are maintenance fees calculated under the Strata Management Act?
The Strata Management Act 2013 (Act 757) governs strata buildings in Peninsular Malaysia, including Johor. Under the Act, charges are apportioned by share units — a number allocated to each parcel that reflects its size and use. The basic formula is:
Monthly maintenance charge = your parcel’s share units × rate per share unit
The rate per share unit is set from the building’s annual budget: roughly, annual operating budget ÷ total chargeable share units ÷ 12. Because larger units have more share units, they pay more — which is why owners often quote charges “per square foot” as a convenient way to compare, even though the legal basis is share units.
How much is the sinking fund?
During the developer’s management period, the sinking fund is fixed at 10% of the charges. Once the Joint Management Body (JMB) or Management Corporation (MC) takes over, 10% becomes the minimum, and owners can approve a higher rate at a general meeting. The Act restricts the sinking fund to capital expenditure, and it must be held in a separate account from the maintenance fund.
Worked examples for Twin Tower unit sizes
We do not publish an official per-square-foot figure for Twin Tower Residence here — always confirm the current rate from the latest statement. The table below uses an illustrative rate of RM0.40 per sq ft to show how the arithmetic works.
| Unit type | Built-up | Maintenance (RM0.40 psf, illustrative) | Sinking fund (10%) | Total per month |
|---|---|---|---|---|
| Studio | 599 sq ft | RM239.60 | RM23.96 | RM263.56 |
| 2 Bedroom | 882 sq ft | RM352.80 | RM35.28 | RM388.08 |
| 2+1 Bedroom | 1,054 sq ft | RM421.60 | RM42.16 | RM463.76 |
| 3 Bedroom | 1,216 sq ft | RM486.40 | RM48.64 | RM535.04 |
Arithmetic for the 2-bedroom: 882 × 0.40 = RM352.80; sinking fund 10% × 352.80 = RM35.28; total RM388.08 a month, or about RM4,657 a year. Replace RM0.40 with the actual rate on the statement to get your real figure.
How do maintenance fees affect your rental yield?
Gross yield ignores running costs; net yield includes them. Using indicative figures for a 2-bedroom:
- Asking rent: RM3,200/month (within the RM3,000–3,500 range on Mudah, Oct 2026) → RM38,400/year
- Asking price: RM1,050,000 (within the RM1.00m–1.15m range, Oct–Nov 2026)
- Gross yield = 38,400 ÷ 1,050,000 = 3.66%
- Less illustrative maintenance + sinking fund (RM388.08 × 12 = RM4,657)
- Net of these charges = (38,400 − 4,657) ÷ 1,050,000 = 3.21%
Quit rent, assessment, insurance and vacancy reduce the figure further, so a full calculation is worth doing — see our rental yield guide. On the other side of the ledger, the facilities paid for by your maintenance fees — pool, gym, sauna, 24-hour security — are exactly what Singapore commuters and professionals look for, and they support both rent levels and occupancy.
What do your fees pay for at Twin Tower Residence?
Portals list a full set of resident facilities at Twin Tower Residence, and these are a large part of what your maintenance charges keep running:
- Recreation: swimming pool, jacuzzi, sauna and steam room
- Fitness: gymnasium/cardio room and jogging track (some portals also list an aero-yoga room and adult fitness stations)
- Family and social: BBQ area and children’s playground
- Safety: 24-hour security and access control
- Building systems: lifts across 41 storeys, water pumps, common-area lighting and air-conditioning, fire safety systems and car park upkeep
Across 458 units, these costs are shared by many owners, which is one reason high-rise living in the city centre can deliver resort-style facilities at a manageable monthly cost.
How to read a maintenance statement
When the seller shares the latest statement, look for these lines:
| Line on the statement | What it tells you |
|---|---|
| Maintenance / service charge | The recurring charge for the billing period (monthly or quarterly) |
| Sinking fund | The separate contribution — check it is at least 10% of the service charge |
| Late payment interest | Any interest already charged on overdue amounts |
| Arrears / outstanding balance | Must be settled by the seller before completion |
| Other charges | Items such as water (if billed through management), insurance or access cards |
Divide the service charge for one month by the built-up area to get the per-square-foot rate you can use in your yield calculation.
What is a special levy?
Occasionally, owners may vote for a one-off contribution to fund a specific project that the sinking fund cannot cover on its own. A healthy sinking fund and regular maintenance make this less likely. When you buy, ask the management office whether any special levy has been approved or is being discussed, and make sure any amount already billed is settled by the seller.
Who manages the building: developer, JMB or MC?
Strata buildings typically pass through stages of management:
- Developer’s management period — the developer manages the building after handover, collects charges and the sinking fund (fixed at 10%) and maintains the common property.
- Joint Management Body (JMB) — formed with owners and the developer before strata titles are issued; it takes over management, sets the budget and collects charges.
- Management Corporation (MC) — comes into existence once strata titles are issued and owners become members; it is run by an elected committee.
In each stage, owners receive accounts and can attend annual general meetings, where budgets, the sinking fund rate and building priorities are discussed. Ask the management office which stage Twin Tower Residence is currently in when you view.
What happens if maintenance fees are paid late?
- Payment is generally due within 14 days of a notice.
- Interest on late payment can be charged, capped at 10% a year under the Act.
- Owners in arrears may lose the right to vote at general meetings.
- Under the 2015 regulations, access cards can be deactivated after notice and a default period, but management must still allow assisted entry and exit — the law does not allow lock-outs or utility cuts.
- Persistent arrears can lead to recovery action, including claims at the Strata Management Tribunal, which hears monetary claims of up to RM250,000.
What should I check about fees before buying a Twin Tower unit?
- Latest statement for the unit showing the monthly maintenance charge, sinking fund and any arrears. Your lawyer will ensure arrears are cleared before completion.
- The share units of the parcel, if available, so you understand how the charge is derived.
- The management stage (developer, JMB or MC) and the date of the last AGM.
- Billing frequency — monthly or quarterly — and payment channels.
- House rules for renovation, move-in deposits, short stays and facility bookings.
These go hand in hand with our viewing checklist and the one-off costs in Buying Costs at Twin Tower.
Scenarios: how owners plan for fees
- Investor renting to Singapore commuters: include maintenance and sinking fund in your monthly budget alongside the loan instalment; well-kept facilities help justify rents in the RM3,000–3,500 asking range for 2-bedrooms (Mudah, Oct 2026).
- Own-stay family: a 2+1 or 3-bedroom pays more in absolute terms, but you use the pool, gym and security every day — compare the cost with what a separate gym membership and security would cost elsewhere.
- Overseas owner: arrange online payment or appoint someone to manage bills; late interest at up to 10% a year adds up quickly.
- Retiree: fixed monthly charges are predictable — easier to budget than maintaining a landed house yourself.
Conclusion
Maintenance fees and the sinking fund are what keep a serviced residence like Twin Tower Residence attractive to live in and easy to rent out. Under the Strata Management Act 2013, charges follow share units, the sinking fund is at least 10%, and late payment carries capped interest. Check the latest statement before you buy, build both charges into your yield calculation, and stay involved at AGMs. If you would like the latest available units, floor plans and their current charges, WhatsApp Darren and we will share the details. You can also browse our listings or compare unit types.
Sources
Frequently asked questions
Can the sinking fund be used to pay for normal repairs?
The Strata Management Act 2013 limits the sinking fund to capital expenditure, such as repainting the building, replacing equipment, renewing fixtures and fittings, and upgrading or refurbishing common property. Routine maintenance, cleaning and servicing are paid from the maintenance account. Keeping the two funds separate protects owners' long-term savings for major works.
Who pays maintenance fees when a unit is rented out?
Legally, the owner of the parcel is responsible for maintenance charges and the sinking fund, whether or not the unit is tenanted. Most tenancy agreements in Malaysia confirm the owner pays these charges, and arrears remain attached to the owner and the unit. Investors usually include the charges in their rent calculation rather than passing them to tenants separately.
Can maintenance fees go up?
Yes. Charges are based on the building's budget, so they can be revised as costs change, through the procedures set out in the Strata Management Act. Under a JMB or MC, budgets and charge rates are discussed and decided through general meetings and the management committee. Attending AGMs is the best way to understand and influence any changes.
Is the maintenance fee tax-deductible for landlords?
In Malaysia, rental income is taxable, and expenses incurred in producing that income, such as maintenance charges, quit rent, assessment and fire insurance, are generally deductible. Treatment of the sinking fund and specific items can differ, so check with a tax adviser and keep every statement and receipt to support your annual tax return.
Where can owners take a dispute about charges?
Owners should first raise the matter with the management office or committee, and at the general meeting if needed. If it cannot be resolved, the Strata Management Tribunal hears disputes under the Strata Management Act, including monetary claims of up to RM250,000. Its process is designed to be faster and less costly than going to court.
