Condo Management Fees — How High or Low Is Reasonable?

When viewing an apartment, most buyers and tenants ask about the sale price or the rent first, and only then about the management fee — usually with a single question: "How much per square metre?". But that number, on its own, says very little. A building charging 18,000 VND/m² can be cheap if it is run well, while one charging 8,000 VND/m² can be expensive if the lifts keep breaking down and the pool sits abandoned. As an advisor working in District 7 – Phu My Hung since May 2023, I want to share how I look at management fees when helping clients choose a home. Every figure in this article is an illustrative estimate, not verified data, and the legal points are general guidance only.

What the management fee actually pays for

The management fee (legal documents call it the "apartment building management and operation service price") is what residents pay each month to keep the building running smoothly. It usually covers:

• Staff: the management office, 24/7 security, reception, on-duty technicians, cleaners.
• Technical operations: lifts, water pumps, backup generators, fire protection systems, lighting in common areas.
• Cleaning and landscaping: cleaning corridors and lobbies, waste collection, caring for greenery.
• Shared amenities: pool, gym, children's play area — depending on the building, these are either included in the general fee or charged separately.

What matters just as much is what is not included. Under Ho Chi Minh City's price framework, the management and operation service price excludes fire and explosion insurance, maintenance funds, parking, household electricity and water, TV, internet and the Management Board's remuneration. So when comparing two buildings, ask "what does this fee include?" before comparing the numbers.

Who decides the fee?

Under the 2023 Housing Law and the Regulation on the management and use of apartment buildings issued with Circular 05/2024/TT-BXD (both in effect from 1 August 2024), the general principle can be summarised as follows:

1. The early period after handover: the fee is usually written into the apartment sale contract with the developer. This is why you need to read the service-fee appendix carefully before signing.
2. Once a residents' conference exists: the Management Board proposes, and the apartment building conference votes to approve the price, based on an agreement with the operating company. The Management Board has no right to set the fee on its own without going through the conference.
3. The city's price framework: Ho Chi Minh City has a reference framework, under Decision 86/2024/QD-UBND, of roughly 1,800–7,000 VND/m² of net floor area per month for buildings with lifts and 600–3,500 VND/m² for buildings without lifts. This framework is mainly used as a basis when the parties have not reached agreement, or for certain special housing types — it is not a mandatory "ceiling" for every building.

Reference levels in District 7 – Phu My Hung

Below are the ranges I commonly encounter when viewing homes with clients; they are illustrative only. Actual fees depend on the building, the handover year and the operator.

Segment	Estimated management fee (VND/m²/month)	70m² unit, estimated per month
Affordable, basic amenities	5,000 – 9,000	350,000 – 630,000
Mid-range, with pool and gym	9,000 – 16,000	630,000 – 1.1 million
High-end, hotel-style service	16,000 – 30,000+	1.1 – 2.1 million+

Beyond the management fee, don't forget parking (motorbikes and cars are usually charged separately each month), electricity and water on individual meters, and some extra services. For a family with one car and two motorbikes, parking can sometimes equal a significant share of the management fee.

When a high fee is reasonable

A high fee does not automatically mean you are being overcharged. It can be worth it when:

• There are many amenities and they are well maintained: a clean pool, a gym with working equipment, a staffed lobby. Each amenity means staff, utilities and upkeep.
• Unit density is low: a building with few units per floor must split fixed costs (security, lifts, technical staff) among fewer people, so a higher unit price is normal.
• The operator is professional: management companies with clear processes and transparent reporting are often more expensive, but in return you get fewer incidents and faster fixes.
• It preserves asset value: a well-kept building stays looking new longer and is easier to rent and resell. From an investment angle, this is "insurance" for the apartment's value.

Don't ask how much the management fee is per square metre. Ask how long it takes for someone to show up when the lift breaks down at ten at night.

— Quỳnh Ngô Land

When a low fee is a warning sign

Conversely, a fee that is very low compared with the same segment is sometimes a signal to ask more questions:

• The developer subsidises the early period: some projects keep fees low at handover to help sales, then raise them sharply once management passes to the Management Board. Ask about the fee adjustment history over the past few years.
• Services are being cut: fewer security shifts, less frequent cleaning, a pool "closed for maintenance" indefinitely. A low fee with low service is not cheap.
• Poor collection rate: if many units owe fees, the operating fund runs short and quality slowly declines. Asking "roughly what share of residents pay on time?" may sound odd, but good management offices can usually answer.
• Problems with the maintenance fund: if the maintenance fund has not been fully handed over to the Management Board, major repairs may be delayed or residents may be asked to pay extra.

How to judge a fee yourself

When helping clients compare buildings, I usually use a simple set of questions rather than just looking at the unit price:

1. What does the fee include? Are the pool and gym free, or charged per visit?
2. When was the fee last adjusted, and by how much? Was the increase approved by the residents' conference?
3. Who is the operator, and how long is left on the contract? A building that changes operators constantly often has internal conflicts.
4. Are income and expense reports made public? A transparent Management Board usually posts periodic reports on the notice board or in the residents' group.
5. Observe in person: walk the corridors, the car park, the waste area and the gym in the evening. Small details tell the truth better than brochures.
6. Ask current residents: a five-minute chat in the lobby often tells you more than any marketing material.

Tenants: who pays the management fee?

For apartment leases in District 7, the common practice is that the landlord pays the management fee, while the tenant pays electricity, water, internet and parking. However, this is only a convention, not a mandatory rule — everything depends on what the lease says. Tenants should ask for the contract to state clearly who pays what, to avoid misunderstandings if the building adjusts its fees mid-lease.

For landlords, the management fee is a fixed cost to deduct when calculating yield. A 70m² unit at 15,000 VND/m² costs about 12.6 million VND a year — enough to noticeably change the net yield compared with the gross yield.

Conclusion

There is no single "right" number for a condo management fee. The right question is: what does this fee buy, and is it sustainable? A higher fee that comes with good operations, transparency and preserved asset value is often a wiser choice than a cheap fee with deteriorating service.

If you are weighing several buildings in Phu My Hung and want to compare management fees alongside actual operating quality, I am happy to view them with you and share what I observe — including the weak points.