Maintenance Fee and Sinking FundJan 19, 2015
If condominium owners are obliged to contribute to the sinking fund, they must also pay the maintenance fee.
The purpose of the maintenance fee is different from the sinking fund in the sense that the former is intended for everyday and minor maintenance work on the development. It is also used to fund the functions of the condo management plus the salaries of the workers that the development employs such as its security personnel. Nonetheless, there may be expenses in which the fund may be used for as long as a vote has been reached between unit owners.
The sinking fund is collected in advance but on the contrary, the maintenance fee is collected monthly. However, it does share some similarities with the sinking fund because the maintenance fee is also based on the area of each unit per square meter.