Maintenance charge for apartments: A guide
For those who are in love with their gated apartment community, the hefty monthly maintenance bill comes as an inevitable onus that has no escape route. Many property owners end up paying huge maintenance bills that run up to Rs 5000 per month for a 1000 sq ft apartment. This can be attributed to the several unanswered questions, which property owners face everyday.
As per experts, every housing society or Apartment Owners Association at its developmental stage, fixes upon the structure of the maintenance charge that will be collected from each apartment in the near future. Below-mentioned is a brief rundown of the some of the important society charges, applicable for every apartment.
- Expense on repairs and maintenance of the buildings
- Service charges (such as security, housekeeping, common area electricity)
- Expense on maintenance and repairs of the lift
- Water and property taxes
- Car parking charges
How maintenance charges are fixed and when an owner is liable to pay
The maintenance charges are set depending on the per sq.ft. rate and hence differ depending on the area of a flat. For instance- if the maintenance cost is Rs 2 per sq ft for a 1000 sq ft apartment, the monthly charge will stand at Rs 2000, and 3000 for a 1500 sq ft. Furthermore, in most of the cases, the per sq.ft. charged does not differ depending on the apartment size.
One of the most frequently asked question is-From when the maintenance charges are payable? Experts confirm that such charges are applicable when the possession letter is issued. Hence, regardless of the fact that whether a particular property is occupied or not, the owner is legally obliged to pay up the charges. As per the The Karnataka Societies Registration Act, 1960 for rented apartments, a tenant is duty-bound to pay for the maintenance charges.
Methods for calculating maintenance fee
Over the years, apartment associations have adopted various methods and practices to collect the monthly maintenance fee. Some of such practices, which are still prevalent include:
Per Square Feet Rate
Under this rule, the fee or rate depends on the square feet area occupied by an apartment owner. The more the square feet owned, the higher the monthly maintenance fee will be. This rule finds its relevance in Apartment societies with different sizes of apartments.
Flat Monthly Fee
As per the flat monthly fee method, the maintenance fee is evaluated by the apartment owners association and is dispersed uniformly among the flat owners. As per the system, all the apartment owners are entitled to pay equal maintenance fee, regardless of the size of the flat. Apartment of same size sq.ft. follow this method.
Partial flat rate
According to this method, society or association charges flat rate for a limited square feet and every additional unit will be charged for extra. For instance, an apartment owner of 800 sq.ft. property will be charged at a fixed rate, and additional 100 sqft will be charged with 2%.
Maintenance charges form a significant part of the amount spent on property purchase. Hence, it becomes a must to get an idea of the nitty-gritties involved in maintenance cost, in order to avoid overpaying.
