Hi Happy, there isn’t a fixed calculation method when it comes to how to calculate maintenance charges for apartments. Yes, there are a few ways through which societies decide on the amount that will be collected as maintenance charges. As Ms Neeti shared, one such method is through the square footage of the society. I’ll be sharing a few more such methods to answer your question.
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How to Calculate Flat Maintenance Charges?
I am aware of two other methods, which include the equal fee and hybrid fee.
Equal Fee
The equal fee method works best when the sizes of the flats are approximately or exactly the same. Here, the total maintenance charges per month are added and then divided equally among all the flats. This creates a balanced and fair system.
Hybrid Fee
Herein, two methods are clubbed together. One component including repair, and sinking fund, for example, is set to be levied in a square feet-based method under the maintenance charges. While the second component, including the service fee, lift, etc, for example, is calculated and divided equally among all the flats. These two components are added and they make up the maintenance fee.
So, these are the processes used. I hope this helps.
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I heard about the term “maintenance charges” charges when I moved to a new flat in a gated community last year. I did not know much about it, so I asked my neighbour to tell me about the apartment maintenance charges rules and regulations. He told me residents in gated communities have to pay a fee every month that is used for the upkeep of the common areas like the swimming pool, stairs, lift, etc in a housing society. This fee is known as maintenance charges.
How is Maintenance Charges for Flats CalculatedThere is not any particular law that specifies the amount to be charged in the name of maintenance. However, real estate developers in India charge between Rs. 2 to Rs. 25 per square foot (PSF) as maintenance charges. Moreover, builders can’t impose maintenance charges unless they have an Occupancy Certificate.
Let’s say you’re living in a housing society that is spread across 15000 sq. ft. and there are 50 residents. If the real estate developer charges Rs 2 PSF as maintenance charges, every resident will be required to pay monthly maintenance charges of Rs. 600 each month.
Criteria for Charging MaintenanceType of maintenance charge | Applicability |
Expenses on maintenance and repair of the building |
0.75 percent p.a. of the construction cost of each apartment |
Water charges and Property tax |
Number of water inlets or Actual consumption of each apartment |
Parking charges |
By no. of parking slots of each resident |
Non-occupancy charges |
For apartments that are rented, calculated at 10 percent of service charges |
Sinking fund |
Minimum of 0.25 percent p.a. of the construction cost of each apartment |
Expenses on maintenance and repair of elevators |
Equally divided among the apartments |
Service charges (security, electricity for common areas, etc.) |
Equally divided among the apartments |
Now you know how to calculate maintenance charges for apartments.
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Read more:
What are common area maintenance charges?
Is GST applicable on maintenance charges collected by builders?
What is GST on the maintenance charges to be paid by the residents of a housing society?
This is all you need to know about the apartment maintenance charges rules and regulations regarding the calculation.
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How is maintenance charges for flats calculated?
Happy
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2022-06-20T18:45:12+00:00 2023-05-23T11:00:53+00:00Comment
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