Most homeowners do not have a say in property management issues as developers hold substantial titles in some projects while most owners are unwilling to join owners' corporations, the Consumer Council says.
It surveyed 1,103 owners, 96 owners organizations and 22 property management companies, and found that owners have to pay a monthly management fee of between HK$200 and HK$3,700, which on average accounts for about 7.4 percent of their monthly household income.
The council has received 694 complaints about property management in the past 11 years, involving HK$393 million, with half about price or charge disputes and 42.7 percent about poor service quality.
Among the 249 projects it surveyed, three-quarters of management companies were related to developers, and residential owners in five of the projects held less than half of the total undivided shares, making it difficult for them to pass resolutions.The council suggested that developers disclose calculations upon undivided shares in the sales brochure. If the developer or any owner had more than a 30 percent share of the property, they should declare their interests and avoid an excessive role in property management decisions.
Johnnie Chan Chi-kau, former president of the Association of Property Management Companies, said first-hand properties are already required to specify the calculation of shares for owners' reference in the sales brochure.Even if a developer has a better chance of deciding on the property management company for the project, it does not mean that other owners would pay a higher management fee, which is mainly affected by the number of property facilities, he said.
In addition to the lack of transparency in share allocation, it is also difficult to obtain the consent of all owners to amend unfair terms in the deed of mutual covenant, said Antonio Kwong Chi-shing, vice chairman of the council.The consent of all owners is required to amend the deed but in many large estates and older properties, some owners cannot not be contacted, making it difficult to amend the provisions.
The watchdog said the threshold should be relaxed to allow amending the terms when at least 75 percent of owners voted in person or by proxy.About 63 percent of owners rarely or never attend owners' meetings, and more than 97 percent said they are busy, not interested or have no comment about taking part in owners' organizations.
Nearly four in five of owners lack knowledge of building management, and the complicated laws and regulations discourage them from participating in owners' organizations, according to the survey.The council suggested strengthening education and publicity to encourage owners' participation.
An information pack for owners can help them understand their rights and obligations, as well as a database on management fee levels across Hong Kong.Chung Chak-fai, a Yau Tsim Mong District Council member as well as chairman of an owners' corporation, said usually less than 30 percent of small owners attend meetings.
stacy.shi@singtaonewscorp.com
