How to Calculate Number of Flats?

“Flats” are defined as any premises in a building which are referred to in a deed of mutual covenant whether described therein as a flat or by any other name and whether used as a dwelling, shop, factory, office or for any other purpose, of which the owner, as between himself and owners or occupiers of other parts of the same building, is entitled to the exclusive possession.

For the purpose of meeting the minimum manning ratios, a property management company should first calculate the number of flats in the properties to which the property management company provides property management services (size of portfolio). The following types of properties should be excluded from the portfolio:

properties not subject to a deed of mutual covenant; and
properties for which all property management services are outsourced by the property management company (the principal property management company) to one or more licensed property management companies (sub-contractors).

Once a property management company has calculated the size of its portfolio, it may then ascertain the number of licensed property management practitioners it must engage in order to fulfil criterion 2.

If a property management company does not have any property in its portfolio. One reason could be that the property management company is newly established and has not entered into any management contract yet. Another reason could be that the property management company has outsourced all property management services to another licensed property management company (subcontractor) in which case the property in question is deemed to be in the portfolio of the subcontractor. In these cases, the property management company is not required to engage any licensed property management practitioner, but for it to hold a property management company licence, it must still fulfil criterion 1.