This article first appeared in City & Country, The Edge Malaysia Weekly on July 29, 2024 - August 4, 2024

It is important for property managers of luxury developments to have the “luxury mentality”, according to Pavilion Suites Kuala Lumpur (PSKL) treasurer Datuk Angie Ng. “Residents of luxury condominiums won’t look at the technical things you are doing, they just look at the outcome. For them, the sense of anticipation when going home is important and the property manager needs to deliver that. It is not just about the landscape, it is the feeling and that’s what they need to deliver.”

Located next to the bustling Pavilion Kuala Lumpur, PSKL is considered one of the most expensive condominiums in Kuala Lumpur. Completed in 4Q2018, it has 383 units (ranging in size from 718 to 1,254 sq ft) in a single block. PSKL is almost fully sold, and 73% of unit owners are Malaysian, while the rest are foreigners. The owner-occupier to tenant ratio is 50:50.

The property management of PSKL was handled by its developer Pavilion Group until March 2023, when Henry Butcher Malaysia (Mont Kiara) Sdn Bhd (HBMK) took over. Recalling the process of selecting the property manager, Ng says a few came for the interview, but HBMK was chosen due to her pleasant experience dealing with them at The Pearl @ KLCC.

“I also own a unit at The Pearl @ KLCC, where HBMK has been the property manager for eight years. The building has been well maintained, and even with all the improvement and upgrading works, there is a surplus that allows us to have waivers on service charges since 2016,” she explains.

“Then, for Pavilion Suites, I wanted a neutral property manager to manage the building. Knowing how well HBMK is managing The Pearl, which is also a luxury condominium, we brought them in because the mindset of managing luxury condominiums is very important.”

She notes that such a mindset allows for services like having concierge staff who can speak at least three languages for easy communication with residents, tight security and so on.

“My business is in China and I have properties there too. The property management there is very advanced … They use facial recognition, QR codes, licence plate recognition and so on. There is no key or access card.

“I shared my experience in China with HBMK and they try to follow suit where possible, especially on the technology aspect. They also respond promptly to feedback, which is very important,” she stresses.

HBMK managing director Low Hon Keong says that Ng’s knowledge and expectations on property management in luxury properties have helped to elevate the standard of property management in Malaysia, and he thinks resident involvement in maintaining a building is important.

“To catch up to that level, we need to understand the client’s objectives in property management. If we don’t have that kind of sense in managing luxury properties, we won’t understand their needs. The definition of ‘luxury’ is very important. We need to continue to study and improve how to make changes,” he says.

This collaboration between residents and the property manager led to PSKL winning Gold in the Below 10 Years — Multiple-owned Strata Residential category of The Edge Malaysia Best Managed & Sustainable Property Awards 2024.

Secretary Sharon Cheong notes that PSKL is a luxury condominium where the owners and tenants read like a who’s who and the main challenge is to understand and meet their requirements.

“We are happy with HBMK because they have a lot of experience in managing luxury residential properties. They are proactive and engage very well with residents.

“They also streamline a lot of processes and have regular scheduled maintenance. They will also suggest things for improvement. As this is a luxury property, when the residents pay so much for the service charge, they would expect the building to be in pristine condition. The property manager needs to manage a team of people who have to be approachable and responsive to resident complaints.”

PSKL’s service charge, inclusive of the sinking fund, is RM1.14 psf.

It is a challenge to manage a luxury condominium next to a popular mall in the heart of the city centre. Low says being a property manager for such a building requires an understanding of the big picture.

“It is not just about managing a normal residential condominium, but a building under the Pavilion branding. With the funds collected, you have to manage properly because these owners are looking for someone trustworthy. It is important to maintain the branding and reputation of this building, and we must align with the big picture of the entire development,” he says.

To manage a luxury property well, engaging with the management committee to understand their objective is important.

“For example, why do you outsource the property management service? What are the things that you are not happy with? What are the things that you look forward to? We need to understand the objective,” says Low.

He adds, “I also believe that more developers are beginning to realise that it may not be practical for them to become a property manager in this era because residents are getting smarter. Developers just want to develop and hand over to residents and be what you call a custodian. They can still do property management, but may not be so hands-on. A professional property manager would have the relevant experience and skills.”

To give residents that sense of anticipation when they go home, the first thing is to ensure everyone in the management team knows the residents by name. PSKL has a no short-term stay policy, so with the security guards recognising the residents there, it is easier for the property manager to enforce the policy.

“If we know this resident is coming back at a certain hour, we need to get ready (to greet them) so that they feel the treatment is much more personalised. Everything is very consistent and we are not allowed to make unnecessary changes to staff manning the concierge counter and main door so that residents will see familiar faces,” Low adds.

“In terms of customer service, which is the concierge, you need more manpower compared to a typical condominium because of the different expectations. For example, we have door-to-door delivery service. We had the opportunity to learn from some international brands and that’s how we came up with the staff proposal. It is like hotel services, only we go the extra mile because legally, under the Strata Management Act, we are not obligated to do all these things.”

Managing a building next to a popular mall means safety remains top priority. HBMK has to ensure that the firefighting equipment and lift systems function at all times. This goes back to planned preventive maintenance by HBMK.

Also, being next to a well-known mall means there will be people loitering or cars parked in front of the building. Building manager Christy Kong says the situation has improved since PSKL has taken a strict approach. Security guards warn intruders off. If that fails, PSKL will ask the Kuala Lumpur City Hall enforcement team to step in.

Customer service for PSKL residents doesn’t stop there. When HBMK took over the management of PSKL, it reduced the outstanding amount from defaulters by 45% between March and December 2023 due to proactive collection efforts and a strict recovery procedure.

Low says, “For people who own these properties, it’s not about whether they can afford to pay or not — it’s whether they want or do not want to pay. They want plenty of customer service, follow-up and engagement with them. They want to feel that they are being served exclusively. This is based on our experience in managing some other similar developments. As long as we give them the statement and the necessary reports, they will pay their advance. The follow-up action must be there.”

At the same time, Cheong notes that the first thing HBMK did upon being appointed property manager was to propose some cost-cutting measures.

“So that is good because they are very careful about the proper allocation of resources. Property maintenance of a building is not cheap and you can’t simply use up the money.

“We also reviewed all contractual service providers and made the necessary changes. Nevertheless, we don’t compromise on services. This is because there are a number of high-net-worth residents and we cannot compromise their privacy, security and safety, especially in this busy location.”

Area manager Lee Siang Ling explains that HBMK is also maximising the efficiency of the service providers. Due to the number of properties HBMK manages in Malaysia, it has the economies of scale in dealing with service providers.

Kong says some energy-saving measures have been implemented, such as scheduling timers for pumps and water features, and shutting down air conditioning in elevators, resulting in a five-figure saving in terms of cost every month.

Cheong reckons that the cost-saving measures are something residents would appreciate because they also do not want to pay increasing service charges.

“HBMK has to upkeep the place. They will see what is required to be done, whether it’s scheduled or even anticipated in advance to make sure that there’s preventive maintenance rather than fixing the equipment when it is spoiled. Preventive maintenance will ensure stable property value.”

Ng notes that an upper-floor unit in PSKL recently changed hands at RM4,100 psf and she believes good property management played a part in the price appreciation.

Low says Malaysians need to shift from the mindset that it is necessary to move house after living in the same place for several years because of the ageing building.

“We must somehow make sure things work as well as they did when the developer first handed over to the residents. That’s why the service charge is fixed at a rate where all services need to be maintained. You can reduce the fee but may have to compromise on the level of service and expectations. [The management corporation] is not a bank, we don’t keep the money and earn interest. Money must be spent wisely for a well-maintained place.”

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