After buying a condominium unit in Thailand, an owner usually deals with two separate building-level charges. Common fee covers ongoing operation and upkeep of common property, while the sinking fund creates a reserve for major repairs and long-term capital work. When comparing condos for sale in Thailand, both should be reviewed together with the purchase price, building rules and the financial condition of the condominium.
What the common fee pays for
The common fee funds day-to-day expenses connected with shared property and facilities. Thailand's Condominium Act places common expenses on the co-owners, while the condominium regulations define how those expenses are allocated and collected.
Typical uses include common-area cleaning, security, lift and building-system maintenance, pool and garden care, shared-area utilities, administrative staff and routine repairs. The exact scope depends on the facilities and rules of the specific condominium.
What the sinking fund is for
The sinking fund is a reserve for larger expenses that fall outside normal day-to-day operation. It may be used for major building repairs, façade work, waterproofing, lift replacement, pumps, mechanical systems and other substantial work on common property.
In many new developments, an initial sinking-fund contribution is collected around handover or ownership transfer. Future top-ups depend on the condominium rules, available reserves, planned works and resolutions of the co-owners.
| Point | Common fee | Sinking fund |
|---|---|---|
| Purpose | Ongoing operation and upkeep of common areas | Major repairs and long-term capital work |
| Timing | Paid according to the condominium billing schedule | Initial contribution with possible later top-ups under the condominium rules |
| Calculation | Based on the registered expense-allocation method | Based on the rate or formula stated in the project documents |
| Examples | Cleaning, security, lifts, pool, gardens and shared utilities | Façade, roof, major equipment and building-system replacement |
How owner charges are calculated
Projects often quote a rate per square metre together with a payment period. The final amount depends on unit size, the registered expense-allocation method and the condominium's own regulations. Two units of similar size in different buildings can therefore have very different annual ownership costs.
Before buying, ask for the current rate, billing schedule and rules for changing charges. When comparing condos in Phuket, it is especially useful to compare buildings with similar facilities, because extensive pools, landscaped grounds, security and complex engineering systems can materially affect operating costs.
Which costs are separate from the common fee
The common fee relates to shared property. Electricity and water used inside the unit, internet, private cleaning, interior repairs, furniture replacement and appliance servicing are normally separate. Rental owners may also have tenant-placement, property-management, turnover and minor-repair expenses.
Transaction costs belong to a different stage of ownership. Transfer fees, possible taxes, bank charges and legal review are covered separately in our guide to taxes and extra costs when buying property in Thailand.
How these charges affect rental yield
For a rental investor, the common fee reduces net income, while the sinking fund forms part of the wider capital committed to the property. A useful return calculation should therefore include building charges, management, repairs and vacancy rather than relying on headline rent alone.
Our guide on how to calculate property yield in Thailand shows how to move from gross rent to a more realistic net result. This makes it easier to compare two developments by the owner's actual cost burden rather than by unit price alone.
What happens with arrears and a resale
The Condominium Juristic Person keeps records of common expenses and can pursue unpaid amounts under the law and the condominium regulations. For a registered transfer of a condominium unit, the seller must provide certification from the juristic person showing that the relevant common-expense liabilities have been cleared.
For a resale buyer, this makes the building's account status an important pre-transfer check. Ask for the current account statement, the latest fee schedule and information about any approved additional contributions.
What to check before buying a condominium
Ownership costs are easier to manage when they are reviewed before reservation. Ask the seller, developer or condominium office for:
- the current common-fee rate;
- the billing period and any advance payment requirement;
- the sinking-fund calculation method;
- available information about the reserve balance;
- approved major works and additional contributions;
- the services covered by the common fee;
- the rules for changing owner charges.
A building with extensive facilities will naturally have operating costs. The important question is whether the charges, reserve and financial records make sense for the level of service and the condition of the common areas.
