Can Property Service Fees Be Raised? – Law In A Minute

Carrie’s Crusade: The Twin Towers’ Tussle Against Swindle’s Sky-High Fees

Carrie, a discerning resident of the Twin Towers’ posh precincts in Hangzhou, found herself entangled in the nefarious net of Swindle Property Management. Swindle, the corporate cousin of highwaymen, had, with a flourish of a pen, doubled their management fee from a modest 2 Yuan to a cheeky 4 Yuan per square meter, citing the old chestnut: inflation.

With a furrowed brow, Carrie sashayed into the lion’s den to confront the maestro of the heist, Bob—Swindle’s general manager. “Inflation, dear Carrie,” he crooned, “it’s the specter haunting our wallets, compelling the fee to soar skyward.”

Carrie, armed with sass and savvy, retorted, “Inflation, I’ll grant you, but not to the tune of 100%! I won’t cough up the extra cash, and I’ll bet my bottom Yuan that the rest of the Tower tribe won’t either.”

Bob, with a villain’s grin, threatened a cost-cutting spree: “Fine, we’ll slash services. Imagine half the security guards vanished! And our vigilant cameras? I’ll auction off every other one!”

“Swindle promised us a square deal—a fair price for top-notch service,” Carrie shot back, her resolve steelier than the Towers themselves. “Raise the fee by a single penny, and you shall reap a whirlwind of empty pockets.”

Can Carrie and her fellow proprietors stage a mutiny against the fee hike?

 

Law In A Minute

The management fee is a pivotal clause within the property management agreement, and like all clauses, it can only be revised after considering a variety of factors, including the general movement of the consumer price index (CPI). This contract outlines the mutual rights and obligations between the Property Management Office and the property owners.

Should the property management company hike up the management fee on its own accord, it would be tantamount to a unilateral modification of the contract’s terms. Alterations to the agreement require clear approval from the owners, or at the very least, the issuance of a notice detailing the increase with legitimate justifications, such as fluctuations in the CPI. Absent such measures, owners are within their rights to reject the alteration.

In line with the contract’s stipulations, the management office is obligated to deliver its services, and conversely, owners are expected to remit the management fees promptly and in their entirety. Furthermore, China’s Contract Law enshrines the principles of integrity and credibility upon the parties involved.

Therefore, Carrie, as a property owner, is entitled to withhold the escalated segment of the fee but not the entirety. The rationale being that the increased fraction was imposed by the Property Management Office without the owner’s explicit agreement.

 

Legal Basis

Property Service Charge Management Measures

Article 2

The term “property service charges” as mentioned in these measures refers to the fees collected by property management companies from property owners. These fees are for the repair, maintenance, and management of buildings and their supporting facilities, equipment, and related areas, as well as for maintaining environmental hygiene and order within the relevant areas, in accordance with the provisions of the property service contract.

Article 6

Property service charges should differentiate between the nature and characteristics of different properties and implement government-guided prices and market-regulated prices accordingly. The specific pricing form shall be determined by the price control departments of the provincial, autonomous region, or municipal people’s governments, in conjunction with the real estate administration departments.

Article 7

For property service charges that are subject to government-guided prices, the price control departments of the people’s governments with the authority to set prices should work together with the real estate administration departments. They should formulate corresponding benchmark prices and their floating ranges based on factors such as property management service grade standards, and regularly publish these prices. The specific charging standards should be agreed upon by property owners and property management companies within the property service contract, based on the prescribed benchmark price and floating range.

For property service charges that are subject to market-regulated prices, the specific fees should be agreed upon by property owners and property management companies within the property service contract.

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