Landlord and Tenants living in older Shanghai apartments in compounds such as the Jing’an Villas – a development popular with expatriates in the city are set for a increase in property management fees.
The local shanghai housing authority has announced the increase in property management fees for maintenance services at over 5000 housing compounds built before the 1990’s many being previously state owned developments.
One of the problems with housing compounds in Shanghai is that they need regular maintenance to ensure they stay clean, safe and pleasant places for the residents.
The older buildings and compounds compared with other residential projects that were built some time after the 1990s, were charging a much lower property management fees. The increase in fees will assist the property managers ease the continuous losses for servicing such aged buildings and motivate them to provide a better service.
More than 1.8 million tenant households living in such apartments will see the increase in fees made to future property management bills.
Local Property management companies in Shanghai have watched labor costs increase by multiple times over the last decade but the increase in service charges has always been difficult to implement.
The lowest property management bill for such an apartment was 10.5 RMB (US$1.66) per month, the new rules will allow property management companies to charge up-to 24 RMB / month.
The local Shanghai housing authority is expected to make use of the new price levy to solve a long-term dilemma in such neighborhoods where residents regularly complain of inadequate services provided by the the property managers and where property managers are reluctant to improve services due to the costs involved.