Factors contribute to default in service charge payment for strata residential in Klang valley area

Wong, Ruxin (2023) Factors contribute to default in service charge payment for strata residential in Klang valley area. Final Year Project, UTAR.

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Abstract

The service charge in a strata residential comprises of maintenance charges and sinking fund, and it is the responsibility of all owners or proprietors to pay it. The management bodies and property managers use the service charge as a fund to maintain and manage the common property. However, property managers commonly face challenges with poor collection of service charge, which has been exacerbated during the COVID-19 pandemic. To address this issue, this research aims to identify the factors contributing to default in service charge payment for strata residential in Klang Valley and analyze which factors affect default the most. The primary data for this research was gathered through a questionnaire distributed to 100 respondents from Klang Valley. The findings were analyzed using the Statistical Package for the Social Sciences (SPSS), and the Relative Important Index (RII) was used to determine the most influential factors. The results showed that the perceived behavioural control factor was the most influential, followed by the attitude factor and then the subjective norm factor. Therefore, this research aims to increase awareness among all owners of the importance of paying service charges and to enhance the knowledge of property managers to improve communication when reminding owners to pay their service charges.

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