WHAT IS THE COMMON AREA AND THE COMMON AREA FEE?
When you buy a condominium unit in Phuket, you’ll be required to pay a monthly fee for the maintenance of the development and upkeep of the common area. This fee may be known by different names, such as Common Area Fee, Maintenance Fee, or Common Area Maintenance Fee (CAM Fee), and is typically paid monthly or quarterly, or sometimes for a full year in advance.
What Is the Common Area?
The common area is defined as that part of a condominium project that falls outside the individually owned units. It includes all the land within the boundaries of the development, excluding the owner’s condo units, and the actual physical structure of the development. Each owner co-owns a share of the common area in direct proportion to the size of their unit, and the co-owned facilities include the gardens and landscaping, car park, hallways, staircases, corridors, elevators, gym and fitness center, swimming pool, lobby area, and all other amenities found outside the owner’s condo units.
The Common Area Maintenance Fee
A CAM Fee covers the ordinary upkeep and maintenance of the common areas mentioned above. This includes regular cleaning, waste collection, and all bills associated with the common area, such as water and electricity. Minor maintenance work like servicing the elevators or small paint jobs are also covered by the CAM fees, as are the salaries of staff who work at the development.
Calculating the CAM Fee
The CAM fee is calculated by multiplying the unit space you own in square meters by the pre-set CAM fee rate, which varies from resort to resort. At the time of writing, the average CAM fee in Phuket is around 60 THB per square meter. For example, if you own a 50-square-meter condo, you would calculate the CAM fee by multiplying the unit area by the fee rate: 50 m2 x 60 THB = 3,000 THB per month (or THB 36,000 per year).
Who is Responsible for Maintenance and CAM?
The Condominium Juristic Person (CJP) and/or the management office are usually responsible for running a resort, with some developments also forming an owners committee. In well-run condominiums, owners have a say in where the monies are being spent, and any major changes to the management or maintenance of the common area require approval from the owners’ committee.
The common area fee protects your investment in the condominium by ensuring that the resort is well-maintained and looks attractive. If you decide to sell your unit in the future, a well-managed resort will be a selling point for potential buyers.
