Proper financial planning is crucial
Proper financial planning for building improvements is essential to ensuring quality building management, says Cendana KLCC management corporation (MC) chairman Darayus Happy Minwalla.
“Something that I insist on is that we hold a committee meeting at least once a month. In fact, in June, we had two meetings, and the reason for the second one is because we are looking at the budget for another three months to see what we can do to improve the quality of life in the building. We have set up a separate committee meeting for just that purpose,” he says.
“We keep building our reserves, which has always been consistently over the RM2 million mark for whatever major works we need to do, such as the change of water pipes for the whole building (to polypropylene random copolymer pipes) as well as the upgrade of the main entrance and guardhouse recently. We are hoping that by the end of this year, we will have built our sinking fund back up for the money we spent on these two items. That has to be planned and thought of now, as we are looking at next year and the amount of money that will be available. Then we prioritise the works that need to be done.”
He adds that the intercom system for all units has been upgraded, as has the vehicle entry system for automated number plate recognition. A community app has also been developed, where owners and residents can check their service charges and house rules as well as carry out facilities booking and visitor registration. The playroom and gymnasium have also been upgraded, while a library has been set up within the building.
SCM International Property Management Sdn Bhd executive director Krishnaraj Perumalu sees the importance of proper financial management as he has seen how major improvement works could not be carried out at some older properties due to insufficient funds. “Pre-planning is very important and that’s what we are doing to make sure that we don’t overspend. At the same time, we have sufficient money to do our work and not to be caught off guard.”
SCM has been the property manager at Cendana KLCC since 2018. Completed in 2008, the condo has 152 units in a single tower on Jalan Cendana, and a stone’s throw away from Petronas Twin Towers and Suria KLCC.
Cendana KLCC receives a Special Mention in the 10 Years and Above — Multiple-owned Strata Residential category at The Edge Malaysia Best Managed & Sustainable Property Awards 2024.
Changes Ahead
MC member Dr Saeed Zaki explains that before SCM came on board, Cendana KLCC was managed by a property manager that had become complacent.
“I was on the committee at the time and we had the same property manager since the inception of the building until we decided to change. The quality of the building was going down and there were a lot of complaints from residents, owners and tenants. So we undertook a major exercise, evaluating all the top property managers in the market. Our purpose was to make sure that we find a property manager who can represent a Grade A building,” he says.
“SCM provided us with a team and they promised that we would get the quality that we required. I am very happy to say that our decision was justified. We have had SCM now for more than six years and the building has improved significantly. We were looking for a company with good governance, that follows a very strong protocol and also has a very strong system of check and balance.”
Krishnaraj recalls that, upon taking over the management of Cendana KLCC, the first thing that SCM did was get a building assessment report before planning the necessary works.
“The first thing we look out for is whether the basic maintenance is there. So, when I say basic maintenance, it [means] things like landscaping, security services, cleaning companies, facilities and equipment. So, these have been forecasted, and we need to make sure that things are periodically maintained and we have sufficient funds to do it,” he says.
“The second thing is to make Cendana KLCC appealing among its competitors, which involves a lot of upgrading, improvement and refurbishment works. We also want to see if the facilities serve the purposes of the property. We don’t over exaggerate the amount of facilities but only put in those that are really required by the residents.”
He adds that community engagement is also important and the property manager makes the effort to tell new residents the history of Cendana KLCC, the works that have been done and where it is now. It is a move he believes the residents will appreciate. The MC organises festive season celebrations and town halls to further cultivate community engagement.
SCM has established planned preventive maintenance for Cendana KLCC, which was not in place before, to avoid any costly downtime from unexpected equipment failure.
Reaping the fruits
The MC is keen on increasing the value and rental of Cendana KLCC. Saeed observes that the increased quality of the building has attracted quality residents as well, thus holding up the property value.
“We sent a letter to all owners, telling them that if they want to rent out their property, don’t just rent to anybody at any rate. We gave them some [benchmarks for] the rental. We advised them. Previously, we had some issues with a tenant where we had to call the police and that’s why we are vigilant now. Also, we don’t allow short-term stays.”
The improvements to the building have helped to increase the occupancy rate at Cendana KLCC, which is now at 80%. Comparatively, Saeed notes that the figure was less than 40% seven to eight years ago.
“We are now working with the SCM team and evaluating all the back-of-house systems to make a plan. Like, for example, we have already upgraded our communications. So we have now allowed a vendor to come in and put in 5G cabling for the internet,” he says.
Reaping the fruits
The MC is keen on increasing the value and rental of Cendana KLCC. Saeed observes that the increased quality of the building has attracted quality residents as well, thus holding up the property value.
“We sent a letter to all owners, telling them that if they want to rent out their property, don’t just rent to anybody at any rate. We gave them some [benchmarks for] the rental. We advised them. Previously, we had some issues with a tenant where we had to call the police and that’s why we are vigilant now. Also, we don’t allow short-term stays.”
The improvements to the building have helped to increase the occupancy rate at Cendana KLCC, which is now at 80%. Comparatively, Saeed notes that the figure was less than 40% seven to eight years ago.
“We are now working with the SCM team and evaluating all the back-of-house systems to make a plan. Like, for example, we have already upgraded our communications. So we have now allowed a vendor to come in and put in 5G cabling for the internet,” he says.
Moving forward
Saeed says the priority is to ensure that the building’s commitment to sustainability is reflected in its work. “We have started implementing a lot of initiatives and one of them is going to be done this year. It is to install solar panels to capture as much renewable energy as we can to run the common facilities.
We are already speaking to several vendors. Hopefully, if things work out, we will use our rooftop to install solar panels and all the public lighting will use the energy from the solar panels. We want to reduce our electricity bill [while also showing] our commitment to the environment. We are also planning to install two EV chargers.”
Source from : The Edge Malaysia
