What is the Maintenance Fee?
The common area fee, or CAM fee, is a monthly maintenance fee paid by every owner of a unit in a condominium development. It is calculated based upon the square metres of each individual unit.
The monthly fee covers the maintenance, up-keep and repair of common area such as security, swimming pool, gym, reception area, gardens, elevators and walkways amongst other things. It also covers monthly electricity bills of the common area lighting, air-conditioning etc and other fees such as window cleaning.
In Phuket the common area fee in condominium developments ranges between 40 and 70 Baht per square metre per month, with the average being 50 Baht.
Let’s say you own a 60 square metre condo in Patong with a common area fee of 50 Baht per square metre per month. Your monthly fee is calculated as follows:
60 square metres x 50 THB per square metre = 3,000 THB.
Usually, the monthly maintenance fee is paid yearly; so in our example your yearly payment would be:
3,000 THB per month x 12 months = 36,000 THB.
It is a called a “common area fee” because in a condominium development all the unit owners are the joint owners of all the common areas under the land title. This being the case is one of the reasons where there is an owners’ committee who amongst other things have an input in the management of the common areas and a right to allocate the sinking fund in order to make improvements.
Please do not hesitate to contact us if you have any questions about Phuket’s property market. We offer free consultation.