How is Parcel Rent Calculated?

 

Previous Quit Rent Formula for Strata Properties:

 

(Property Size in SQ.FT x Quit Rent Rate) / Number of Parcels = Quit Rent Amount

 

For example: (8,000 SQ.FT x RM 0.03 per SQ.FT) / 8 Units = RM 30

 

Current Parcel Rent Formula for Strata Properties:

 

(Property Size in SQ.FT x Quit Rent Rate) = Parcel Rent Amount

 

For example: (8,000 SQ.FT x RM 0.03 per SQ.FT) = RM 240

 

In the past, if a property of 8,000 square feet had 8 units, the ‘master’ quit rent would be RM 240, which would be distributed to 8 parcel owners at RM 30 each through maintenance fees. With the current Parcel Rent system, each of the 8 parcel owners is charged RM 240 directly.

 

This means the cost of homeownership for strata property owners has increased significantly under the current Parcel Rent system compared to the previous Quit Rent system.