Everything You Should Know About MCST and Managing Agents
Private developments of all kinds, such as shopping malls, office buildings, and condominium complexes, often come with an array of shared facilities that must be managed and regularly maintained—a responsibility that most property owners prefer not to take. This is where the Management Corporation Strata Title (MCST) comes in.
Read on to learn more about the MCST and why it is such a crucial aspect of private property living in Singapore.
What Is an MCST and What Does It Do?
For the most part, property owners are unwilling to spend significant time and energy on micro-managing their developments. As such, they delegate the job to the MCST: the managing body of a property with multiple owners and shared facilities, such as swimming pools and security. In Singapore, the MCST is typically associated with private residential developments like condominiums.
One of the MCST’s most critical jobs is the management of a development’s funds. When an individual buys a condominium, they are to pay a monthly maintenance fee, which the MCST collects. It is then split into a management fund and a sinking fund. The former is used for day-to-day expenses, while the latter is stored for future capital needs, such as painting.
Besides collecting maintenance fees, the MCST has a relatively broad job scope. For one, it is responsible for the cleaning, upkeep, and repairing of common facilities. It also oversees the development’s security.
The standard of MCSTs varies across different developments, with the quality of services provided being a key differentiator between competitors. While some MCSTs do the bare minimum and only fix glaring problems, others may focus on facility upgrading and introduce initiatives to develop a sense of community.
The typical MCST falls between these two extremes.
What Is a Managing Agent (MA)?
The MA, who is appointed by the management council, is the full-time professional responsible for the day-to-day operations of the development.
Specifically, the MA ensures the smooth functioning of the estate in terms of cleanliness, security, administrative matters (e.g. the booking of facilities), financial matters, and more. As such, they are in charge of decisions like the type of cleaning service to hire and the security company to use.
A good MA is critical as they are the ones individuals deal with when maintenance issues arise.
Why Is This Important to Me?
Regarding property ownership, the significance of MCST and MAs cannot be overstated. Sometimes, the MCST is a deciding factor for individuals looking to purchase a property. The MCST may also affect the property value, with better-maintained facilities being of higher value.
Therefore, it is beneficial to understand the role and importance of MCSTs; this knowledge can help you become a more responsible and reliable property owner.
The MCST is an aspect of property ownership that influences the lives of private housing residents. As such, it is critical to understand who they are and what they do.
If you’re looking for building services for MCST clients, check us out at OCL Building Services. As a general contractor in Singapore, we provide a range of services, such as roof leakage waterproofing services, pressure grouting concrete repair and swimming pool maintenance.