What is the Common Area Fee/CAM Fee and Sinking Fund?
The Common Area Fee or CAM Fee is a monthly maintenance fee that every owner of a unit in a condominium or other development registered under the Condominium and Hotel Licenses must pay. The fee is based on the square footage of each individual unit, so owners with larger units pay more than those with smaller units within the same development.
The CAM Fee covers the maintenance, repair, and upkeep of shared areas such as the security, swimming pool, gym, reception area, gardens, elevators, and walkways, among other things.
It also includes the monthly electricity bills for shared areas, such as lighting and air conditioning, as well as other fees, like window cleaning.
In Phuket, the CAM Fee for developments typically ranges from 40 to 80 Thai Baht per square meter per month, with the average being around 50 Baht for well-managed properties.
For instance, if you own a 100 square meter condo in Patong with a CAM Fee of 60 Thai Baht per square meter per month, your monthly fee would be:
- 100 square meters x 60 Thai Baht per square meter = 6,000 Thai Baht.
Usually, the monthly maintenance fee is paid yearly; Thus, your yearly payment would be:
- 6,000 THB per month x 12 months = 72,000 THB.
The term “common area fee” refers to the fact that all unit owners within a development are joint owners of all shared areas that fall under the land title. This is why there is an owner’s committee responsible for the management of shared areas and the allocation of the sinking fund for improvements.
The Sinking Fund is a one-time payment that every owner of a unit must make when purchasing property. The amount is based on the area of each individual unit. This fund covers the cost of major repairs and upgrades to buildings and shared areas within the development.
In Phuket, the sinking fund fee for developments typically ranges from 500 to 1,500 Thai Baht per square meter. For a 100 square meter unit in Patong with a sinking fee of 500 Baht per square meter, the one-time fund payment would be:
- 100 square meters x 500 Thai Baht per square meter = 50,000 Thai Baht.
Apart from the common area fee, the sinking fund is an additional payment that is necessary when purchasing a condominium or other development registered under the Condominium and Hotel Licenses.