Strata & Building Management
The developer kept the extra bays and is still renting them out — is that allowed?
Whether a developer can keep renting surplus bays turns on one question the strata plan answers: are they accessory parcels appurtenant to unsold units, or common property? Common property is defined by exclusion under s.4 of Act 318 as whatever is not comprised in any parcel or accessory parcel on the plan.
Quick summary
Quick answer
Best for
Risk level
Buyer action
| Best for | Buyers checking what parking they are actually getting, and owners in a dispute over a bay. |
|---|---|
| Risk level | Medium |
| Buyer action | Send Lewis your building name, the charge you pay and what you are trying to decide, and he will tell you what to check first. |
Check the strata plan, not the brochure
This post works through whether unallocated bays vested in the MC on formation decides who collects that rent, and owners can check this. The Strata Titles Act treats accessory parcels strictly, which is why so many informal parking deals are unenforceable.
The plan decides, not the practice
Section 4 of the Strata Titles Act 1985 defines common property as so much of the lot as is not comprised in any parcel, including any accessory parcel, or any provisional block as shown in an approved strata plan. That is a definition by exclusion, and it means the approved strata plan is the document that decides the status of every bay in the building. A bay drawn as an accessory parcel belongs with its principal parcel. A bay not drawn as one is common property, however it has been used or labelled since handover.
If they are accessory parcels
Then they are appurtenant to particular parcels, and the developer holds them only for as long as it holds those parcels. Sections 69 and 34(2) of Act 318 restrict dealing with an accessory parcel independently of its principal parcel, so the developer cannot sell or transfer the bays on their own to a third party. When the unsold units are eventually sold, the bays go with them, and any rental arrangement over them ends with the change of ownership rather than binding the new owner.
If they are common property
Then they are owned collectively by the proprietors, and the question is not what the developer wants but what the management body has authorised. A joint management body may lease or rent property under s.23(2)(c); a management corporation under s.50(2)(c) read with s.60(2). Regulating or allocating parking is done by additional by-law under s.32(3) or s.70(2), and those require a special resolution at a general meeting. A developer collecting rent on common-property bays after the body exists should be able to point to the resolution that authorised it.
Verify this against your own building
Get the strata plan and your SPA schedule and confirm in writing which bays are accessory parcels tied to your unit. Do this before you pay, not when you try to sell.
Buyer checklist
Read the strata plan, not the developer's letter. If the bays are shown as accessory parcels appurtenant to particular parcels, they belong to whoever owns those parcels — and ss.69 and 34(2) of Act 318 stop them being dealt with separately. If they are not shown as accessory parcels, they fall into common property under s.4, which is collectively owned, and any renting out is a matter for the management body under its leasing powers and additional by-laws, not for the developer.
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| 1 | Get the approved strata plan and identify which bays are drawn as accessory parcels. |
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| 2 | For accessory parcels, note ss.69 and 34(2) prevent them being dealt with separately from their principal parcel. |
| 3 | For bays not on the plan as accessory parcels, treat them as common property under s.4 of Act 318. |
| 4 | Ask the management body which resolution authorises any rental of common-property bays. |
| 5 | Check that rental income from common-property bays appears in the maintenance account. |
Common questions
Can the developer keep renting out spare bays after handover?
It depends on the strata plan. If the bays are accessory parcels appurtenant to unsold units, the developer holds them with those units. If they are not shown as accessory parcels, they are common property under s.4 of Act 318 and the management body's leasing and by-law powers govern them.
How do I find out which they are?
The approved strata plan. Common property is defined by exclusion — whatever is not comprised in any parcel or accessory parcel shown on the plan.
Can the developer sell the bays separately?
Not if they are accessory parcels. Sections 69 and 34(2) of the Strata Titles Act 1985 restrict dealing with an accessory parcel independently of its principal parcel.
Who should be collecting rent on common-property bays?
The management body, under its power to lease or rent property — s.23(2)(c) for a JMB, s.50(2)(c) read with s.60(2) for an MC — with allocation regulated by additional by-law under s.32(3) or s.70(2).
Lewis Chong
REN 69566 · IQI GlobalProperty advisor helping KL, JB, and Penang buyers make data-backed property decisions.
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The developer was wound up before strata titles were issued — can owners still get title?
The Strata Titles Act 1985 gives parcel owners no mechanism to apply for strata titles themselves when a developer is wound up. Only the proprietor of the alienated land may apply under s.7, with the application made under s.9 on Form 1 — which means the liquidator must assume that duty, and s.8 makes the application compulsory once any parcel is sold.
Lewis Conclusion
Direct your correspondence to the liquidator, not the land office, and frame it as the proprietor's compulsory duty under s.8 rather than as a request for help. That is the pressure point the Act actually gives you, and pretending there is a shortcut only costs owners time.
How your maintenance charge is actually calculated — share units, not floor area
Malaysian maintenance charges are apportioned by allocated share units under the Strata Management Act 2013, not by floor area — s.8(1) sends the computation to the First Schedule, and s.12(3), s.25(3) and s.60(3) apply it through the developer, JMB and MC periods. Here is how to read your own bill and when a different rate is lawful.
Lewis Conclusion
If you only remember one thing: ask for your share unit figure, not your square footage. It is the number that sets your bill and your vote for as long as you own the unit, and it is printed on documents you are entitled to see.
The sinking fund explained
The sinking fund is a statutory capital reserve set at a minimum of 10% of the maintenance charge under ss.12(4), 25(4), 52(3), 61(3) and 68(3) of Act 757. It may only be spent on capital items — painting, replacing fixtures, upgrading common property — and a general meeting may raise the rate but never drop it below 10%.
Lewis Conclusion
Ask two questions before you buy into any high-rise: what is the sinking fund balance, and when were the lifts, the roof and the external paint last done. If the balance is small and those items are old, the shortfall is coming to you as a special levy — it is only a question of which year.
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Get the approved strata plan and identify which bays are drawn as accessory parcels.
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For accessory parcels, note ss.69 and 34(2) prevent them being dealt with separately from their principal parcel.
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For bays not on the plan as accessory parcels, treat them as common property under s.4 of Act 318.
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Ask the management body which resolution authorises any rental of common-property bays.