Households typically manage their living environment using one of two modes. Under the first, household conducts all of the basic and day-to-day management functions. Under the second approach, the household hires a property management company to provide and monitor a number of services such as repair and maintenance quality control.
In Taiwan, the current proportion of the implementation of condominium ( collective housing ) management and maintenance is 68% of owner management and 32@/o of company management. Comparing to Hong Kong and Japan where the company management is more common than owner management, this proportion is far behind.
This research is focus on the reason of less popular of company management in Taiwan collective housing and the factors of affecting the choice of management mode. Moreover this research also discusses the results and effects of different management modes and which management mode can provides the highest degree of satisfaction.
The empirical results show that the main factors of selections between different management modes are the "scale" and the "price" of the condominium. On average, comparing company management and owner management, the possibility of choosing company management is 6.357 times more in high-rise buildings (above 13 floor) than in apartment (under 5 floor) and 4.245 times more in the community (large projects) than in apartment. Besides, when the scale of the quantity increases additional ten units averagely, the possibility of choosing company management will increase 3.9% ; and when the management cost averagely goes up extra ten dollars per Pin, the possibility of choosing company management will also increase 6.5 % .
As for the discussion of the relationship between the management modes and the household satisfaction, general speaking, the household can get more satisfaction from the result of appointing building management & maintenance companies. Moreover, the outcome of "part company management mode" is the most outstanding one in the four types. The reason is that although the company has the professional knowledge and superior management skills, there does also exist the problem of agency. Due to the trade-off relationship, the satisfaction of complete company management mode is less than part company management mode.
In order to relate the theoretical model to the practice, this research infers the thresholds of "scale" and "price". The results show that every household in the community which has hired the building management & maintenance industry has to pay 70 NT$ per Pin-Month in average; furthermore, the number of its households should be approximate 100 units. Therefore it can be said because of the fact that the average number of the household in condominium in Taipei might not excess the threshold of economic scale, company management is not very common in Taipei.( note that at this stage 80% of the registered condominium is less than hundred households.). Besides, the reason of low proportion of company management is that there does exist the difficulty in negotiations and externalities. Consequently, it is suggested that government should use the effect of tax policy to intemalize the externalities. It is also recommended that government can direct or indirectly authorize the non-profit organizations to assist home owners associations to register, so that the cost of negotiations can be reduced.
keywords: condominium、 management & maintenance 、 management mode、household satisfaction 、 thresholds of "scale" & "price"