How to Challenge High Management Fee Hikes

Mr. Zhao has been living in a private housing estate in Tsuen Wan with a 25-year history for many years. In 2025, he received a budget notice from the Owners' Corporation: the management fee for the next year would be increased by 35% according to the unit's share. Compared to the surrounding estates where the increase was only 8‑10%, he questioned the excessive fees and decided to join forces with his neighbors to investigate. Below are common questions that will teach you how to legally check accounts, demand explanations, and even convene a special owners' meeting to overturn the budget.

1. How much can the management fee be increased? Is there a legal cap?

The Building Management Ordinance (Cap. 344) only stipulates that expenses must be "reasonable and for the benefit of the building"; there is no percentage cap.

• Key point: Any new budget must be passed at the Annual General Meeting of owners, or approved by a written resolution with the consent of more than half of the ownership. If the owners' corporation fails to hold the relevant meeting on time, or collects fees without voting on the budget, it constitutes a procedural flaw

2. What to do if dissatisfied with the budget

• Request information in writing
  • According to the Building Management Ordinance (Chapter 344)Section 27, owners can request in writing to review the accounts, contracts, and invoices of the Owners' Corporation (the Corporation must arrange within 14 days)
• Check major expenditure items
  • Whether there is a sudden increase in "security/cleaning contracts"; whether there are bidding records for new facilities (smart gates, rooftop gardens)
• Hire an independent auditor or licensed property management consultant
  • Small owners can share the consultant fee (usually $5,000‑10,000), and obtain a comparative report as evidence

3. How to convene a special owners' meeting to overturn the budget?

• Threshold: Written request from no less than 5% of the ownership or 50 owners (whichever is lower), the corporation must issue a notice within 14 days
• Agenda suggestions
  • Require the corporation to explain in detail the increase in each expenditure
  • Vote on "Return the budget, re-tender" or "Freeze the management fee cap to X%"
• Voting: Votes are counted according to the ownership shares, a majority is required to pass the motion. If the corporation refuses to convene, you can seek help from the "Community Building Safety Team" of the Lands Department or apply for a court order from the District Court

4. If irregular expenses are discovered, what is the accountability path?

• Internal Handling: Resolution at a special owners' meeting to hire a new management company or hold the former company accountable
• Report to the Police Commercial Crime Bureau: If it involves forged documents or benefit transfers
• Civil Recovery in Court: The Owners' Corporation can represent the owners to claim compensation from the former management company or involved committee members

Facing a sharp rise in management fees with nowhere to turn? Owners have the right to check accounts and question charges, can jointly petition to convene a special owners' meeting, and demand re-tendering or freeze the increase.