The Civil Code clearly stipulates that vacant properties are subject to strata fees

Mondo Social Updated on 2024-02-18

The Civil Code clearly stipulates that vacant properties are subject to strata fees

By the end of 2023, China's urbanization rate will reach 6616%, an increase of 094 percentage points. In that year, the permanent urban population increased by 11.96 million, which means that 11.96 million rural people entered urban life. Although the current urbanization rate is slightly slower than the average annual migration rate of nearly 20 million rural people to cities in the past 20 years, there is still room for growth in China compared to the 80%-90% urbanization rate in developed countries in Europe and the United States, which indicates that more rural people will gradually move to cities in the future.

For the new residents of these cities, housing is the first issue they face. They usually start by renting and gradually accumulate funds in the hope that they will be able to buy their own home in the future and realize their dream of living in a safe urban environment.

Housing standards are very different between rural and urban areas. In the countryside, each family owns a piece of land, builds its own house, has its own courtyard, and forms its own borders. In cities, high-rise buildings can be seen everywhere, and residential buildings are clustered together in residential units. Unlike rural areas, which are managed by village committees, the day-to-day management of urban communities is the responsibility of real estate companies. In the stressful city life, people are busy with work and have little time to take care of the affairs of the community, so the property company has become an indispensable service provider. They keep the neighborhood clean and safe, and the owners pay the property fees on time and can enjoy a comfortable life. This symbiotic relationship between the owner and the property company was supposed to be harmonious and beneficial to everyone, but in recent years this balance has been broken.

As society changes, so does the attraction of canceling properties. The property management company, which was originally a service provider, has gradually become a community manager, and even uses the owner as a tool for profit. This distorted relationship means that the service attitude of the property company is not satisfactory. For the owner, the house is supposed to be a warm harbor, but the unreasonable restrictions and difficulties of the property management company often arouse strong dissatisfaction among the owners. Non-payment of strata fees became a direct way for them to express their dissatisfaction. In order to maintain income, property management companies take extreme measures, such as restricting the owner's access to vehicles, access control cards, and even affecting the normal use of electricity and water by the owner, in an attempt to force the owner to pay the fee.

This vicious circle exacerbates the contradictions between the owner and the occupant, and the otherwise harmonious symbiotic relationship is in jeopardy. To resolve the impasse, both sides need to re-examine their roles and positions.

In the author's opinion, the core conflict between property companies and property owners mainly revolves around property tax and service levels. The poor service level and arbitrary charges of the property management company are the main reasons for the dissatisfaction of the owners. If a utility company struggles to collect strata fees, its service level tends to drop, creating a vicious circle. However, from 2024 onwards, property owners will no longer have to worry about strata fees. According to the new provisions of the Civil Code, property management companies are obliged to publish the details of property tax to property owners on a regular basis. In this way, the property owner can be clear about the content and reasonableness of the property tax he pays, effectively control the work of the owner, and then prompt the property management company to improve the service level.

In addition, the Civil Code also clarifies the payment of property tax on vacant houses. In the past, there was controversy over whether vacant houses should pay property tax, and some provinces gave preferential treatment to vacant houses to pay property tax. Since vacant houses are unoccupied, homeowners feel that they are not enjoying property rights services, so they are reluctant to pay property taxes. In order to collect property tax on vacant homes, strata companies usually make some concessions. At present, the Civil Code has made clear provisions on this issue.

Admittedly, some homeowners may think that their house, although located in a residential area, does not enjoy all the services provided by the property and therefore does not need to pay property tax in full. However, this view is not accurate. Allowing vacant units to enjoy property tax exemptions is not only a tolerance for investment speculation, but also an injustice to other property owners in the community. In fact, regardless of how many people live in the community, the operating costs of the property management company are generally the same, and the difference may only be in the details such as cleaning up the garbage. If the owner of a vacant unit pays less property tax, it will affect the income of the utility company, which will lead to a decrease in the quality of service. At this time, the strata company may choose to increase the strata fee or lower the service standard, which is unfair to the resident owner.

Therefore, the owner of the vacant house is still obliged to pay the strata fee according to the regulations. The Civil Code clearly stipulates that property owners shall not refuse to pay property fees on the grounds that they have not enjoyed or are not obliged to enjoy the relevant property services. The purpose of property management is to repair, maintain and manage the house and its ancillary facilities and equipment through property service enterprises, and maintain the environmental hygiene and order of the community. As long as the property service company has provided the corresponding services in accordance with the property service contract, that is, the contractual obligations have been fulfilled, the owner cannot refuse to pay the fee on the grounds of non-occupancy. In short, regardless of whether the owner actually lives in the community or not, as long as his property is in the community, he must comply with the provisions of the property contract and pay the property fee in full.

For property companies, their role is to serve the owners wholeheartedly. As long as the property management company is conscientious and provides quality services to the owners, most owners will consciously pay the property fees. Of course, if the owner refuses to pay the property fee, the property management company also has the right to protect its rights and interests through legal means, but in this process, the property management company should avoid using illegal means to force the owner to pay the fee.

When it comes to paying property tax on vacant houses, the answer is clear: even if the property is vacant, the owner is obliged to pay the property tax on time and in full. Regardless of whether the community is inhabited or not, the real estate company will provide a full range of services for the community, maintain the overall environment and facilities of the community, and ensure that the rights and interests of the owners are protected.

Property owners must recognize that property tax is not just an expense, but an endorsement of the cost and value of the utility company's services to the community. In order to ensure that the property management company fulfills its duties and provides quality services, property owners must pay their property fees on time to avoid default.

At the same time, the owner also has the right to ask the property management company to improve the quality of service. If the level of service is not satisfactory, the owner must unite and express his appeal through legal channels, or even change the property company according to the law. In this process, the owner must maintain a rational and calm attitude, not only to protect their own rights and interests, but also to comply with laws, regulations and contract agreements.

In addition, owners with a sense of responsibility and mission can consider a self-governing approach to managing their own communities. Through democratic decision-making mechanisms such as the owners' meeting, we will discuss community affairs and formulate management rules to ensure the normal operation, harmony and stability of the community.

In short, in the payment of property tax and the selection of property companies, we must defend the principles of fairness, justice and reasonableness. The rights and interests of property owners must be protected, and the fruits of the property company's labor must be respected. Only in this way can we create a safe, comfortable and harmonious living environment together. What are your thoughts on this?

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