GEORGE TOWN: Some quarter of a million strata title property unit owners in Penang have until year end to settle their parcel rent.
The parcel rent, which was implemented on Jan 1, replaces the quit rent.
It is imposed on strata titled properties in the state which comprises 224,303 units in 1,796 housing schemes.
Strata property unit owners have to pay the parcel rent to their respective district and land offices, and not through their management corporations (MCs) or joint management bodies (JMBs).
The amount will depend on the size of each strata property unit as compared to the master lot each property is built.
Selangor and Malacca have also implemented the parcel rent, while Kuala Lumpur will do so next year.
Chief Minister Chow Kon Yeow said the notices for the strata units would be handed over to the respective MCs and JMBs this year before being sent directly to the owners from next year onwards.
He said the delay was due to the fact that district and land officers had to update their billing lists upon receiving payments from the parcel owners this year.
“By practice, all parcel owners are required to pay their parcel rent by May 31 or be subjected to a five per cent penalty.
“Since this is the first year of implementation, and due to some glitches, we are giving parcel owners until the end of the year to settle their parcel rent with no penalty,” he said here, today.
Chow said owners who settled their parcel rents without arrears would be issued payment receipts.
“This receipt is very important and a requirement for any transactions, including the title transfer and such,” he added.
Asked whether owners would be paying a higher rate with the new mechanism, Chow cited an example where the total quit rent that was collected from a strata based property here was RM28,268 last year.
“With the introduction of parcel rent, the total to be collected was reduced to RM24,239, as parcel rent does not take into account common areas, unlike quit rent.”
State Local Government Committee chairman Jagdeep Singh Deo said the parcel rent was meant to replace quit rent and not the monthly maintenance charges.
“Parcel owners still need to pay the maintenance fees to their MCs or JMBs,” he added.
Jagdeep said the total amount of arrears for quit rent, involving all properties, amounted to RM65 million.
“With the introduction of parcel rent, whatever arrears a parcel unit owes, the owner has to settle it, otherwise no transactions can be conducted on those units,” he added.