All You Need To Know About Society Maintenance Charges

April 07, 2022
By Team MyGate
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Once you are the rightful owner of a residence in a housing society, you are part of a larger, more inclusive, white picket fence community. Homeownership is not only a matter of pride and joy but a lifelong commitment that comes with a regular cost in form of apartment & society maintenance charges. This, however, should not be perceived as a cause for concern but be regarded as an essential investment you make for a comfortable and practical living experience. While a sizeable number of online and offline resources would have you believe that maintenance charges of society are a complex and necessary evil, we’d like to assure you that not only are they easy to comprehend but also mostly justified and in compliance with the law. Let’s find out what are the society maintenance rules.

What are maintenance charges?

It is the fixed amount residents pay monthly to the society for the upkeep of the common areas in a gated housing society.

Types of society maintenance charges

In India, model bye-laws vary from one state to another, albeit the basic anatomy is the same. The most detailed guidelines on maintenance charges are set forth by the state of Maharashtra, permutations and combinations of which may be followed by other states.

The charges can be categorically divided as shown below: (Keep in mind that these are guidelines provided by the bye-laws, however based on different calculation systems, each society determines how much each member pays as maintenance charges… more on that later).

Service charges: These include any charges incurred to acquire services and amenities, including but not limited to electricity for common areas, watchmen, lift operators, cleaning crew, and gardeners. Service charges are borne equally by all members.
Repair and maintenance charges: These include taking care of all elements of the building such as internal roads, pumps, drainage, lift, tanks, generators, street lights, security equipment, among others. Rates are determined by the society’s governing body; subject to the minimum of 0.75% per annum, of the construction cost of each flat for meeting expenses of normal recurring repairs.

Parking charges: Applies to those who own vehicles. Charges depend on the rates fixed by the society (usually vary for two-wheelers and four-wheelers).
Water charges: Mandatory for all residents, the charges are based on the basis of total number and size of inlets provided in each flat.

Non-occupancy charges: An amount to be paid even if you are not currently residing in the house/flat, however, these charges should not be more than 10% of the service charges.

Sinking Fund: Emergency fund for unforeseeable situations is determined by the governing body of the society, subject to a minimum of 0.25% per annum of the construction cost of each flat.

Property Tax: Decided by local authority, but not applicable outside Maharashtra since it is directly paid to the government
Interest on defaulted payments: If you make late payments, you are liable to pay an interest on defaulted dues. Charges vary from society to society, but are subject to a maximum of 21% per annum on the charges.

Insurance charges: Certain expenses for insuring the building and equipment may have to be paid (based on the built-up area of the flat) as part of the maintenance bill. You don’t have to pay the insurance premium for shops/flats used for commercial purposes by others in the building.

Lease/rent charges: This is based on built up area of each flat / unit.

Other charges: As decided by the governing body of the society as and when needed.

Is it mandatory to pay maintenance charges?

If you are in an independent apartment ownership, every amenity or service you require, you pay out of pocket but are not subject to an annual or monthly maintenance charge. In case of housing societies, it is mandatory to pay society maintenance bills as you are agreeing to be a part of a larger, co-operative construct. As soon as you are a registered member, a maintenance contract is signed by you and the builder, making both parties legally liable to fulfil their respective duties.

Once the builder hands over the affairs to the society, the managing committee takes over the handling of services. Paying maintenance charges is a valid and preferable arrangement as you don’t have to pay for large amounts of money alone in order to avail common services; the cost is shared by all members. Besides, a reasonable amount of flexibility is offered to members in terms of payment options and frequency.

How are maintenance charges calculated?

For a number of reasons, maintenance charges is a hotly contested topic in housing societies since there seems to be a general ignorance or discontent about how they are determined. As we perused above, each charge has a calculation based in logic, the details of which can be easily availed from the managing committee. But the law doesn’t concern itself with the issues of fair levying of charges as per the size of the residence and the utility of services. However, since the co-operative is a collaborative effort, every resident’s grievance or discomfort is duly noted and rightly resolved by the use of different calculation systems. Let’s explore them in detail.

Charges based on per square feet: This system of calculation is used when the size of apartments are different. Your maintenance charges will depend on the total number of square feet in your apartment. For example, if the committee decides to levy Rs 2 per square feet and your apartment is 600 sq feet, you will pay Rs 1200. But if your apartment is 1200 square feet, you will pay Rs 2400. The downside of this method is that if apartments with larger sizes end up paying on the basis of square feet, they may have to pay a larger share towards maintaining and repairing common services for which smaller-sized apartments will pay less, even though the utility and access may be the same.

Equal Fee: This is the ideal method to calculate maintenance charges when the sizes of all apartments is either exactly the same or approximately the same. In this method, the total maintenance charge to be collected per month is added and then equally divided among all residents, thus ensuring a fair and square deal for all. This is simple to calculate and dispute-free but does not appear as an impartial method if the apartment sizes are largely diverse from one another.

Hybrid fee: This method is a combination of the above two types, doing away the need to choose one or the other, thus providing absolutely fair treatment to all members. In such a method, square feet based charges are applied to one clubbed component, say repair and maintenance charges and sinking fund. At the same time, equal fee calculation is applied to the other categories of charges such as service fees, lift expenses. Categories other than that already have specific and precise corresponding guidelines given in the model bye-laws. Applying a hybrid method is highly effective in case of fair and unbiased distribution of maintenance charges.

How often do you have to pay maintenance charges?

There are four payment cycles you can adopt – they are (1) annual (2) bi-annual (3) quarterly (4) monthly payment cycles. Housing societies decide upon one of these payment frequencies at the very initial stage and can make changes later. They have to consider factors such as timely payments of service/utilities, how many members are willing to pay maintenance in bulk amounts and ultimately, which is the easiest payment frequency with respect to collection and record-keeping.

It is always recommended to stay on top of your maintenance charges to avoid late payments, which result in added interest. Paying your maintenance charges on time also establishes you as a responsible resident. However, be sure to examine any expenses that look out of place and bring them to the management’s notice promptly.

How maintenance charge affects you financially?

Any society or apartment maintenance charges rules have a direct effect on the life cycle cost of a property. Investors investing in commercial property or MNCs have a good understanding of maintenance charges. The society maintenance charges are higher in commercial properties than in residential ones, as the former will have components such as central air conditioning and larger common areas. But when it comes to people buying homes, not everyone is aware or understands the impact of maintenance charges on flats. This is one thing developers also don’t care to explain or talk about.

For projects that are still under construction, the maintenance charges may not be demanded initially and may not be discussed in detail. However, for a property that is ready to move in, all the charges, including apartment maintenance charges and various deposits, are required to be paid upfront and hence, the home buyer learns about it. The disclosure of apartment maintenance charges impacts a buyer’s decision.

GST on Maintenance Charges

On 22 July 2019, the Government issued Circular No.109/28/2019– GST on ‘Issues related to GST on monthly subscription/contribution charged by a Residential Welfare Association (RWA) from its members’ according to which maintenance charges/subscription charges paid by residents to the Resident Welfare Association* are exempt if the amount charged does not exceed INR 7,500 per month, per member (prior to  25 January 2018 the limit was INR 5,000). However, if these charges exceed INR 7,500, GST on annual maintenance charges is chargeable on the entire amount charged.

Maintenance charges/subscription charges paid by residents to the Resident Welfare Association* are exempt if the amount charged does not exceed INR 7,500 per month, per member (prior to  25 January 2018 the limit was INR 5,000). However, if these charges exceed INR 7,500, GST on annual maintenance charges is chargeable on the entire amount charged.

Everything About Housing Society Share Certificate

Roles and Responsibilities of a Society Management Committee

Common Housing Society Problems and Solutions

What if society member is not paying maintenance?

Society may send reminder/notice to the defaulter for the payment of society maintenance. If the dues are still not paid by the defaulter then society can file a case against the defaulter at the office of deputy registrar of cooperative housing society.

Should I pay maintenance if my flat is empty?

It majorly depends on the bylaws set by your society. If as per the bylaws of society states that all members of housing society have to pay maintenance changes weather flat is occupied or empty. Then as a resident of housing society you have to pay maintenance charges.

What do you mean by maintenance charge?

To maintain the services and amenities present in the premises, a cooperative housing society may chanrge a certain amount as maintenance charge.

Can society increase maintenance charges at any time?

The society cannot demand service and other charges which the society charging from the members and similarly contribution of the 
expenditure to be incurred for the repairing of society as per resolution in the managing committee meeting only. It is obligatory to take approval of general body meeting in this regard and to take action as per resolution of general body meeting.

Can maintenance charges be waived off?

Under exceptional cases, a society can waive off maintenace charges for a stipulated period of time.

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25 thoughts on “All You Need To Know About Society Maintenance Charges

  1. What was the Supreme Court of India’s recent judgement on levying of Maintenance Charges will be based on square feet area of a dwelling or will it be equal for all members of a Co-Operative Housing Society?

  2. I have a flat in Pune Maharashtra of 640 sqft.
    Since January 2018 i am not living there due to my home town family problem.
    Till date society is not formed of the building & they are asking to pay me maintenance of this 2 years of Rs 28500/-
    Is it mandatory to pay the same to me if even i am not living there.
    Plz reply.

  3. Can two different rate per sq.ft be charged by Housing Co-op Society towards Maintenance for Flats located in the same building of the same Housing Society, when the facilities provided are uniform for all the Flats of the same building. Of course with an uniform rate/sq.ft ( which is universally followed ) the total Maintenance Charge would vary depending upon the size of the Flats. But my question is regarding different rate per sq.ft being applied in the same building of the same Hsg. Society.

  4. Below all questions are belong to Gujarat state.

    1) What are the rules for transfer fees for
    MAINTENANCE COOPERATIVE SOCIETY?

    2) How much the maximum amount of transfer fees?

    3) Builder is paying monthly maintenance to MAINTENANCE COOPERATIVE SOCIETY.

    4) If any flat sold by builder than can buyer has to pay transfer fees to Society?

  5. If I am not living in my flat in society and flat is locked, how much maintenance I have to pay out of 2000 rs.

  6. Our Builder collected the maintenance charges from every Flat unit holders as a one time maintenance charges at the time of agreement R.1,00,0000) (Rs. One lacs or more), and some unit holders are taken the possession in 2014-15 and after that, builder formed the society in 2019-20, but now no anyone of unit holders ready to pay the maintenance charges now every month due to they already paid the one time maintenance charges, till the society formation builder doing the expenses from that amount, there is a basic monthly expenses are approx. 1,50,000.00 ( Rs. One Lacs Fifty thousand.) but due to this disputes Society committee is unable to run the society’s management. Builder is not given the details expenses of one time maintenance. Hence facing problem.

  7. Our society charges on super buildup area maintenance.I want clarification as assumed it should be on carpet area bases.

  8. In the case of a society can one please quote with a proper judgment which can confirm about the levy of a Non-Recurring charge like Repairs and Maintenance which are more of capital nature meant to improve long term durability of the complex?
    Will this be psft or per flat?

  9. My society is charging hefty amount every other month in the name of maintenance (apart from normal maintenance). Who should pay that? Owner or tenant?

  10. My flat society.insisting to share contributions for the water proofing n fire fighting upgradition.
    As far as I know to society ask for it because it is outside maintenance work n.not internal ie to my flat inside areas.
    In.view of above would you kindly advice me.any provisions in the society law of maharashtra state can the society ask for sharing the costs of this work. I want to refuse to pay it.
    Thanks in advance for your quick answer
    Best regards
    Syed AHMED
    Pune
    8793347422

  11. I hv a flat 2 Bhk + open terrace in Khalapur Tal, Dist-Raigad MH. Paying monthly maint.charges regularly. Shall I pay maint.charges for my personal open terrace. Pl reply. Thanking u in anticipation.

  12. Can the society collect cultural fund collection through maintenance bill, is it permitted as per co-op society bye laws, whether it can be made mandatory?

  13. Society MC demands annual maintenance charges before Apr 25 2020. Can the members defy the due date and ask for extension until 30 Jun 2020 in view of lockdown. How can senior citizen get benefits during lockdown?

  14. During the lockdown for the covid 19, maintenance charge cannot be paid on time to the society. Can a society charge a penalty fee on being delayed due to this unforeseen circumstance?

  15. Society is asking maintenrnce till april 30 ,last date further is penelty.
    Since present condition of market and due to covid 19 there is problem of cash/ payment is accounts i have requested my soc to extend the dt till next month and can collect ad per convience of member.
    As per my view soc chairman and sec are not agree on this ,can you pl guide me on this issue.
    Is there any guide lines are relesed by mah co op hsg soc.

  16. Can the builder charge maintenance charges for the period before taking possession.
    I took possession of my flat in September 2019 and builder is asking to pay from 1.1.2019.

  17. Is there any act passed on low or no maintenance charges as well as interest charges for not paying monthly maintenance the due to Covid-19.

  18. I have let out my flat in a housing society,. Now the Association people have asked the owners to pay STP and lift maintenance charges. As the flat is rented, who is to pay these maintenance cost? Please clarify.
    Thank you.

  19. I am a shop owner in a housing society ,do i need to pay for the renovation work done inside the society ?”my shop is attached to the main road,which is outside of the society”

  20. My society has collected additional 15000 for terrace repair in 5 instalment. Now they are also collecting interest from the members who have not yet paid it. Is it legal. Can they charge interest on additional charged amount.

  21. I have a flat in Pune Maharashtra.
    Builder handed over keys to me in dec 2019 but flat cleaning was not done properly also some problem in water pipe. Builder completed all the work and handed over the one remaining key to me in feb 2020.
    In march 2020, we are supposed to move to new flat but due to some problem and after lockdown starts unable to move and Till date no one living there.
    Society is allready formed ( before registration done by me )and decided maintenance Rs.2000/- pm.
    I have also paid one time maintenance charges which is in sinking fund.
    Now they are asking to pay me maintenance of the flat since Sep 2019 (from date of registration of flat).
    Is it mandatory to pay the same to me if even i am not living there or is there any provision to pay less maintenance charges as no one living there.

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