Choice of property management system for
residential strata developments in Singapore
This section presents a case study of two residential strata developments in Singapore– referred to here as “Strata Development A” and “Strata Development B”. The case study provides insights into the two developments’ choice of property management system and its implications.
Based on interviews with the property manager and Managing Agent of the two developments, the different property management systems are examined to establish how appropriate and suitable they are for each strata development. These provide valuable lessons for other residential strata developments on the implications of each property management system.
Choice of residential strata developments for case study The two developments were selected for the case study based on the following criteria:
Location: The two strat developments are located in close proximity to each other in a prime residential area in Singapore. As such they share similar locational attributes like distance to amenities and access to public transport.
Age: The construction of the two strata developments were completed around the same time Strata Development A in 1977 and Strata Development B in 1979. The implication of the age of the strata developments is that it provides a good comparison with regard to the physical deterioration and the extent of up keep and maintenance required for both of the strata developments.
Tenure: The two strata developments share similar tenures – both hold 999-year lease hold titles.
Different management systems: Strata Development A has always employed an in-house management team for their strata development,
while Strata Development B has always employed a Managing Agent to manage their strata development.
Data availability: The Chairs of the Management Councils as well as both the property manager and Managing Agent of both strata developments were responsive and forthcoming with regards to the information required for this study.
Strata development A
Strata Development A is a residential strata development within a prime residential area. The development consists of 470 units which include 38 townhouses and six shop houses with the rest of the units built into five high-rise tower blocks. The tenure of the property is 999 years leasehold. Since the development was completed in 1977, it has employed an in-house management team to oversee its property and facility management needs.
There was just one time – a relatively brief period of about six months – when a Managing Agent was engaged as a consultant: this was when the strata development was seeking a new property manager. Even then the Managing Agent was never involved in the line of authority of the Management Council or of the in-house management team. Rather the role of the appointed Managing Agent was merely to act as a consultant on any issues the Management Council or property manager may have encountered in the management of the strata development during the interim.
The in-house management team for Strata Development A comprises of 28 staff members. The property manager acknowledges that it is rare for a residential strata development in Singapore to employ an in-house management team of this size. The property manager heads the team all of whom are under the direct payroll of the development’s Management Corporation Figure 3.
The property manager who holds a Polytechnic Diploma in Property Management is assisted by a property officer a chief security
officer an administrative officer and two accounts officers. In addition the property officer leads a team of six maintenance staff that take care of the daily physical maintenance of the strata development including the periodic servicing of the strata development’s water tanks and pumps and replacement and repair of any faulty electrical devices. The chief security officer leads a team of sixteen security guards whose job includes the manning of the development’s three entry-exit points and the patrolling of the strata development to ensure the safety of the residents in the strata development. The only aspect of the running of the strata development which is not handled by the in-house management team is cleaning and waste disposal which is sub-contracted to an external cleaning 2company.
By having the entire team under the direct employment of the Management Corporation the issue of command and control is more efficacious as when compared to the situation if the strata development was run by a Managing Agent. By having all the staff report to him the property manager has a better grasp of the day-to-day happenings in the strata development. With this overview he is able to respond more quickly to situations or emergencies that arise.
The property manager also pointed out that in his experience at the development beyond the physical aspects of running an in-house management team , he has found that the staff in the team demonstrate a high degree of commitment and loyalty to their employer. This may be contrasted with a strata development managed by a Managing Agent where the staff are employed by the Managing Agent’s firm and typically rotated between developments. In such a case it is more likely that their commitment is directed towards their employer the Managing Agent’s firm rather than to the Management Councils that they are assigned to work with which may in turn change from time to time.
The study of Strata Development A also reveals that the employment of an in-house management team not only allows but
requires the Management Council to assume greater power and control over how the strata development is run than if it were handled by a Managing Agent. Such control can translate into better management of both the daily activities of the running of the strata development as well as the formulation and continued implementation of long-term goals and strategies of the Management Council. However it must be emphasized that the success of such a system is largely dependant on a committed and competent Management Council holding office. The Council would have to be comprised of dedicated volunteer members prepared to oversee the in-house management team together with their property manager at the helm. Based on the study of Strata Development A’s Management Council it is noted that such a Management Council mainly comprises retirees often with knowledge and experience in real estate matters and who are willing to undertake the supervision of their in-house team in order to meet their own expectations. It appears that even the age profile educational background and employment status of the subsidiary proprietors become relevant to the issue. The main objective of such a Management Council seems to be to retain 3control over practically all aspects of the running and operations of the place Council members also share the view that this will be diluted if they employ a Managing Agent. As the Management Council is elected by the Subsidiary Proprietors at General Meeting it is implied that the majority of Subsidiary Proprietors are in favor of such a mode of Management.
Strata development B
Strata Development B is a residential strata development also situated within the same prime residential area. Like Strata Development A the property has a 999-year lease hold title. It comprises 623 units in two eight-storey-high blocks of terraces , three 14-storey slab blocks and two 16-storey point block. Since its completion and occupation in 1979 the development has continued to engage the same Managing Agent firm for its property and facility management needs. This seems to contradict
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