This article highlights the service mindset for strata managing agents and discuss about what constitutes premium service and what is not. The limitation of the Building Maintenance & Strata Management Act (BMSMA) concerning the appointment of a strata managing agent is also discussed.
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By definition, the Oxford English Dictionary defines “ Service” as a noun. Its action verb is “ Serve”. This implies that one has to serve in a service.
Young men in Singapore will understand that they are required by the Enlistment Act be enrolled for National Service to serve in the Singapore Armed Forces, Singapore Police Force or in the Singapore Civil Defence Force for two years when any young man reaches the age of 18. It is the duty of every young man in Singapore to serve his country and it is honourable to do so as a Singaporean.
Commerically, a customer pays for a service and it is not uncommon for anyone to comment and may be even protest against, when the service provided falls below his expectation. It is reasonable therefore to state that if top dollars are paid, a higher standard of service is expected. For example, anyone that has paid for a business class air flight can reasonably expect that the seat and food provided and the manner he is served, be better than those taking the economy class. The same expectation applies when someone booked into a 5-star hotel against one that stays in a budget hotel. It would be deemed unreasonable for a customer that has booked into a budget airline or budget hotel, to expect services be equivalent to a full- pledged airline or a 5-star standard. The rating for services in the travel and hospitality industries is quite distinctly defined. The customers and service providers generally understand the differences in the ratings for these industries, and have accepted them as they are.
How do we rate the service delivered by a strata managing agent for a strata development, say a condo? How should deliverables by any typical strata managing agent be measured as basic or premium service? What constitutes premium service and what is not? Would the fee chargeable by a strata managing agent reflect the level of service that it delivers? Many may agree that it would! Almost everything to be delivered by a strata managing agent (and other service providers too) cost a price, the greatest of which being the manpower cost. A typical service package provided by a strata managing agent comprises among others: financial management; maintenance management and administrative management services. These 3 main components of services involve manpower onsite (according to the size of the development) and certainly at the main office (HQ) of the managing agent. Except for a reduction in the use of manpower at an estate, the cost difference between companies is not likely to be significant.
Any person who professed to providing strata management service to any management corporation (MCST) in Singapore, should first be trained and acquainted in: the Legislation Course for Managing Agent; Application of BMSMA; Building Services & Maintenance of typical strata buildings; and be equipped with Communication & Administration skills. Any person that is delivering what he has been trained for, is only fulfilling his basic duties. For example, a bus driver is expected to ferry his passengers from point A to point B safely and on schedule, is only fulfilling his basic duty. In strata management, one would be considered to have delivered the basic duties if he has among others, carried out these main duties:
a. Ensuring that safety and statutory compliances (especially the BMSMA) of a strata development are complied;
b. Upkeeping the common property via proper maintenance management including contractual matters; and
c. Keeping proper books of accounts for financial related matters including arrears management.
From an optic view, the deliverables for any premium service, are expected to be above those promised for a basic package. Apart from fee, any personnel assigned in a premium package for strata management service should in the first instance bears the mind-set, be committed to delivering the premium services so promised, no less. A higher volume of communication in various forms, between the managing agent (and therefore the personnel assigned) and the occupants is expected. The delivery of these services need not be entirely physical human interaction. It is likely a digi-physical concept with a combination of digital means supporting the personnel executing the various tasks. These personnel should also be more willing to accept constant appraisals from clients where rewards are promised for meeting KPIs and high performance.
Managing agents are usually appointed on yearly basis by virtue of Sect 66(1) BMSMA. While Sect 66(2)(a) of the Act empowered an MCST to appoint a managing agent for up to 3 years, this provision subjected the appointed managing agent to an annual review at subsequent AGMs [(1st Schedule Paragraph 3(c )]. There is a potential risk that an AGM may decide against the continuation of the managing agent for reason(s) beyond the control of the managing agent. This provision has discouraged the industry and therefore managing agents from providing creative services. The above provisions are more 20 years old. This is an internet age. It is time that these provisions be abolished. Creative strata managing agent service packages are available but some may require a longer managing agent contract period for the managing agent to recover its investment cost.
It is time for the industry to reinvent. MCSTs certainly will welcome strata managing agents that could differentiate themselves in services and breaking out from the usual box.
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About the Author: Teo Poh Siang is the Founder of Wisely 98 Pte Ltd, an established company providing strata management services and training in Singapore and South-East Asia. He is the author of A Practical Guide to Strata Management in Singapore (1st and 2nd Editions). This is the first book in Singapore written by a strata practitioner. This is available at www.wisely98.com/publications.
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