WHAT IS JMB?

Joint Management Body in Malaysia

A layman’s guide to running and maintaining a strata property in Malaysia. It covers essential aspects such as understanding strata titles, the roles and responsibilities of the management committee, legal requirements, and practical tips for effective property management.

In Malaysia, a Joint Management Body (JMB) is a group formed to manage the common property of a residential or commercial building that has multiple owners, like condominiums or shopping complexes. This body is legally required to be set up under the Building and Common Property (Maintenance and Management) Act 2007 once the building is partially occupied. The JMB is responsible for things like maintaining the building’s common areas, deciding on service charges for upkeep, and managing the building’s funds.

The main purpose of a JMB is to ensure that the shared parts of the property are well-kept and that the building remains a comfortable and safe place for its residents and users. It’s made up of the developer and the property owners themselves, which means as a property owner, you get a say in how the building is managed.

Here’s a simple way to think about it: If you live in a condo, the JMB is like the council that helps make sure everything you use together with your neighbors, like lifts, hallways, or swimming pools, are taken care of.

Why is the JMB is important?

Think of a Joint Management Body (JMB) as the team that takes care of all the shared spaces in your apartment complex, like the lobby, elevators, swimming pool, and garden. When you live in a building with lots of other people, it’s not just your own apartment that needs upkeep but also these common areas that everyone uses.

The JMB is important because they make sure these shared spaces are clean, safe, and in good working order. They also handle things like collecting the monthly maintenance fees from all the owners, which are used to pay for things like cleaning services, security, and repairs. Additionally, if there’s a disagreement among residents, the JMB can step in to help sort things out.

Basically, having a JMB makes living in a strata property easier and more pleasant because they take care of all the big and small details that keep the building’s community running smoothly.

Strata Title and Properties 

In layman’s terms, a “strata title” is a form of ownership devised for multi-level apartment blocks and horizontal subdivisions with shared areas. If you own a property with a strata title, it means you legally own a part of a building, typically a unit or apartment, and you share ownership of the building’s common areas with the other unit owners. These common areas can include things like gardens, hallways, pools, and gyms.

“Strata properties” refer to the buildings or complexes where this type of ownership is used. This is common in condominiums, townhouses, and commercial properties like shopping centers. Each owner has a title to their individual unit but also shares responsibility for the building’s overall maintenance and management.

The key thing about strata properties is that they require a group management system to handle everything that affects the shared spaces and services. This is where organizations like the Joint Management Body (JMB) come into play. They help ensure that the property is well-maintained, and that the building remains a pleasant place for all residents or businesses by managing everything from upkeep and repairs to financial matters concerning the shared parts of the property.

The Malaysian Building and Common Property (Maintenance and Management) Act 2007, often simply referred to as the Act 663, was established to provide a legal framework for the proper maintenance and management of buildings and common property in Malaysia. This law is particularly relevant to the management of high-rise residential buildings, shopping complexes, and mixed development areas. Here’s an overview and the main points of the Act:

Overview

The Act was introduced to address issues related to the management and maintenance of shared buildings and areas, which often became problematic under previous legal frameworks. It aims to ensure that all parties involved, especially property developers, management bodies, and property owners, have clear responsibilities and guidelines to follow for the upkeep of communal living and business spaces.

Key points from Act 663:

Establishment of a Joint Management Body (JMB)
The Act requires the formation of a Joint Management Body (JMB) for all stratified properties not later than 12 months after the delivery of vacant possession. The JMB consists of the developer and the purchasers and is responsible for managing the common property until the Management Corporation (MC) is formed.

Formation of Management Corporation (MC)
After the subdivision of the building into parcels, a Management Corporation must be formed. This body takes over from the JMB and is responsible for the management of the building and the common property. It is made up of all the unit owners.

Duties and Powers of JMB and MC
These bodies are tasked with maintaining and managing the property and common facilities. Their responsibilities include collecting charges from the parcel owners, maintaining a sinking fund, and ensuring that the common property is in good repair.

Maintenance and Management Accounts
The Act mandates the establishment of a maintenance account and a sinking fund. The maintenance account covers expenses for daily operations, whereas the sinking fund is used for major repairs and upgrading of facilities.

By-laws
The Act allows the JMB and MC to create additional by-laws for the regulation of the property. These by-laws can govern issues such as security, the usage of common facilities, and noise levels, among others.

Compliance and Penalties
Non-compliance with the Act can lead to penalties for property owners, developers, or management bodies, ensuring that there is accountability and enforcement of the law.

The Building and Common Property (Maintenance and Management) Act 2007 significantly impacts how residential and commercial properties are managed in Malaysia, promoting better governance, accountability, and sustainability in property management.

In Malaysia, a Joint Management Body (JMB) is typically composed of two main groups of members:

The Developer
The property developer is automatically a member of the JMB from the beginning until the Management Corporation (MC) takes over. The developer’s role is crucial during the early stages of property management, especially in ensuring that the initial setup and transition are handled correctly.

The Purchasers (Property Owners)
These are the owners of the individual units within the building or complex. Once the property has been delivered and buyers have taken possession of their units, they become eligible to be members of the JMB. They play a significant role in the decision-making process regarding the management of the property.

The JMB is established to manage the common property of a building or a complex until the formation of the Management Corporation, which happens when the individual titles are transferred to the owners and a sufficient number of parcels are sold. The JMB’s members, particularly the property owners, are elected during general meetings to form a committee that oversees the management and maintenance activities, financial matters, and the enforcement of house rules. The formation of the JMB ensures that both the developer and the unit owners have a say in the property management in the interim period before full control is handed over to the owners through the Management Corporation.

Election process and term duration of JMB members

The election process and term duration for Joint Management Body (JMB) members in Malaysia are straightforward:

Election Process

• JMB members are elected during the Annual General Meeting (AGM) attended by the property owners.
• Any unit owner can nominate themselves or be nominated by another owner to become a member of the JMB.
• The election typically involves a simple vote by the property owners present at the meeting. The candidates who receive the most votes are selected to serve on the JMB.

Term Duration

• JMB members usually serve for a term of one year.
• After their term ends, a new election takes place at the next AGM where members can be re-elected or new members can take their place.

This process ensures that property owners have a say in who manages the shared areas of their building and for how long, promoting fairness and accountability in managing the property.

The role and responsibilities of the JMB

The Joint Management Body (JMB) members in Malaysia have a very important job, they manage and look after the shared spaces and services in buildings with multiple owners, like condominiums or apartment complexes. Here’s what they generally do:

Maintain Common Property
This includes taking care of areas everyone uses, such as lobbies, swimming pools, gyms, and gardens. They ensure these places are clean, safe, and in good working order.

Manage Finances
They collect monthly maintenance fees from all the owners to pay for things like cleaning, security, and repairs in shared areas. They also manage a sinking fund, which is money saved for big repairs or replacements needed in the future, like fixing the roof or upgrading the elevators.

Hire and Supervise Staff
JMB members are responsible for hiring people who help manage the building, such as security guards, cleaners, and maintenance workers. They make sure these staff members do their jobs well. In most cases, a property management company is hired to undertake this task.

Enforce Rules and Regulations
They make sure all residents follow the building’s rules, which helps everyone get along better. For example, they might enforce rules about noise, pets, or how to use the pool.

Handle Complaints and Resolve Disputes
Whenever there’s a disagreement or problem among residents, JMB members help solve these issues. Whether it’s noise complaints or issues with facilities, they step in to mediate and find solutions.

Organize Meetings
They hold regular meetings to discuss and make decisions about the building’s management. This includes planning for any big projects and getting input from other owners.

Keep Everyone Informed
They communicate important information to all owners, like changes in management, upcoming repair works, or financial updates. They ensure transparency in their operations.

In essence, JMB members act as the caretakers and decision-makers for the building, working to ensure that living in the building is comfortable, secure, and enjoyable for all residents.

Financial Management by JMB

The JMB is in charge of all the money matters for the building’s shared spaces. They make sure there’s enough money to cover daily operations and future repairs. Here’s a simple breakdown of how the Joint Management Body (JMB) manages finances for buildings like condominiums:

Maintenance Fees
These are regular payments made by all property owners. This money is used for everyday expenses like paying for cleaners and security guards.

Sinking Funds
This is a separate pot of money that property owners also contribute to. It’s saved for big, future expenses like replacing the roof or fixing the elevators.

The JMB sends out bills for the maintenance fees and sinking funds, and it’s their job to collect these payments from the property owners. If payments are late, the JMB will follow up to ensure they are received.

The JMB needs to be clear about how they’re using the money. They should regularly tell property owners where the money’s going, such as what repairs have been made or what services have been paid for. They do this through detailed financial statements and reports during meetings with the property owners.

In essence, the JMB manages all the money needed to keep the shared areas of the building running smoothly and plans financially for any big repairs or upgrades that will be needed down the line. They also make sure property owners know how their money is being spent to maintain trust and transparency.

Maintenance and Upkeep Responsibilities

The Joint Management Body (JMB) takes care of several key duties to ensure the building and its common areas are well-maintained and safe for everyone:

Routine Maintenance Tasks
The JMB handles everyday tasks to keep the building in good shape. This includes cleaning shared areas, checking and fixing lights, and making sure the elevators work properly.

Handling Repairs and Renovations
When something breaks or needs updating, the JMB manages the repairs. This could be anything from fixing a leak in the community hall to renovating the lobby to give it a fresh look.

Management of Common Facilities
The JMB takes care of facilities that everyone uses, like swimming pools, gyms, and gardens. They make sure these areas are clean, safe, and ready for use by scheduling regular maintenance and repairs as needed.

Importance of Building Safety and Compliance
It’s crucial that the building meets all safety regulations to protect everyone who lives or visits there. The JMB ensures that fire alarms are working, safety exits are accessible, and the building complies with all local safety laws.

Overall, the JMB’s role in maintaining and repairing the building and its facilities is essential for keeping the property safe, functional, and enjoyable for all residents.

See our list of maintenance services

Conflict Resolution

In strata living, where many people share common spaces and facilities, disputes can sometimes arise. Here’s how these are typically handled:

Common Disputes in Strata Living
Disputes might include issues like noise complaints, disagreements over parking spaces, or concerns about how the building is being maintained. Essentially, any situation where residents feel their rights or comfort are being impacted could lead to a dispute.

How JMB Mediates and Resolves Conflicts
The Joint Management Body (JMB) steps in to help solve these problems. They might organize meetings to discuss the issue, offer mediation between disagreeing parties, and suggest compromises. The goal is to resolve conflicts amicably so that everyone can continue to live together peacefully.

Legal Avenues for Unresolved Disputes
If a dispute can’t be resolved through mediation and it’s causing significant problems, there are legal options available. Residents can take the matter to a tribunal specifically set up for handling strata property issues, where a more formal resolution can be decided. This helps ensure that all residents have a fair chance to present their side, and the dispute is resolved according to the law.

A property management company plays a crucial role in assisting a Joint Management Body (JMB) by taking on the day-to-day responsibilities of managing the property. This support is vital for the JMB to function effectively and ensures that the property and its facilities are maintained to a high standard.

Here’s how a property management company assists a JMB:

Legal Compliance

Ensuring Regulatory Adherence
Property management companies ensure that the property complies with all relevant laws and regulations, helping the JMB navigate legal complexities related to property management.

Administrative Support

Handling Paperwork and Documentation
The management company takes care of all the administrative tasks such as maintaining records, managing contracts, and handling correspondence.

Financial Management
They manage the financial aspects, including collecting maintenance fees, managing the sinking fund, preparing budgets, and ensuring financial compliance.

Operational Management

Maintenance and Repairs
The company oversees the upkeep of the property, scheduling regular maintenance, and addressing repairs as needed. This ensures that all common areas and facilities remain in good working order.

Vendor Management
They negotiate with and manage service providers and contractors, ensuring quality services at competitive prices.

Communication and Conflict Resolution

Liaison Between JMB and Residents
They act as intermediaries, conveying information and addressing residents’ concerns, which helps in maintaining harmonious relations within the community.

Mediating Disputes
The company often handles disputes between residents or between residents and the JMB, using their expertise to mediate and resolve issues effectively.

Strategic Planning

Advisory Role
Property management companies provide expert advice to the JMB on various matters, including long-term planning and enhancements that can increase property value and improve resident satisfaction.

Enhancing Community Living

Organizing Community Events
They can also assist in organizing events and activities that promote community bonding and enhance the quality of life for residents.

By delegating these responsibilities to a professional property management company, the JMB can focus more on governance and strategic decision-making, rather than getting bogged down by the intricacies and demands of daily property management. This partnership ensures that the property is managed efficiently and continues to be a desirable place to live.