Maintenance Charges: A Holistic Guide

Alright! So, ultimately Kabir has decided to buy a house.

Why shouldn’t he?

He knows that his family deserves a better place in this world. He knows that his mother needs a little more care and concern. He knows that his papa loves to listen to classical music sitting all alone in an open space. Kabir understands that his grandma too needs her own space, more love and care.

All these are small concerns, but these matter for each one of us. After all, we live for our near and dear ones. If not everything, we know that our family deserves to get a little more happiness.

Kabir, thus, has decided to build up a cosy little world for his family.

For a month he has consulted with several builders, developers, and other real estate agents to gather information about real estate properties. He has set his budget and has selected an apartment that he would prefer to buy.

Now, the question is, IS THE PRICE OF THE PROPERTY, REGISTRATION CHARGE, AND THE LIKE THE ONLY PRICE THAT KABIR HAS TO PAY? The answer is NO. He has to pay some maintenance charges too!

Let’s see what are the charges.

What is the Maintenance Charge?

Before we move on to what type of maintenance charges we need to pay, we must know what the maintenance charge is. Well, if we live in a society, we have to take responsibility for society. It is not that we should care only for our apartment.

Being responsible people, we need to actively participate in improving the overall atmosphere/condition of our society or the community where we live. Right?

So, for maintaining a healthy atmosphere we need to pay some maintenance charges regularly. While living in a building we use the elevators, the common space, the parking area, the garden or any open green space, etc.

Thus, we need to pay a certain amount of money to maintain these areas. Else, life would have been much difficult. Imagine a day without these facilities and you will understand their worth!

Ashwinder Raj Singh, CEO, Residential Services, JLL India, says, “The funds will be collected from the residents, based on either the principle of equal participation, where the flat sizes are almost the same or per square feet (PSF) charges for varying flat sizes.”

You might find some buildings where everyone needs to pay an equal amount of maintenance charge. No matter whether you have a family of 4 persons or 8, the maintenance charge remains the same.

Again, there are several apartments where the charge taken for maintenance depends on the number of family members, the size of the apartment, etc. Initially, the builder takes the maintenance charge from the flat owners.

The responsibility goes to the flat owners when the builder hands over the flat to them. Now, the owners can modify the rules at their convenience.

List of Some of the Facilities for Which You Need to Pay the Maintenance Charge

Elevators: No matter whether you use the elevators or not, the charge of the same is taken from the flat owners. It might also include the charges of repairing or maintaining the lift, etc.

Service Charges: This charge includes the charge you (as an owner) need to pay for security, common area electricity, housekeeping, cleaning the common space, etc. This charge gets divided among the flat owners equally.

Sinking Fund: A minimum of 0.25 % p.a. (per annum) of the price of construction of each apartment is set for the charge of the sinking fund.

Parking Charge: It depends on the number and type of vehicles you have.

Charge for Using Water: This, generally, depends on the number of members living in each apartment. A family of 2 needs to pay less than a family having 5 members.

Insurance Charge: It is being paid by the owners for the insurance of the entire building, the equipment, etc.

Other Charges: Some other charges that you might have to pay to include the non-occupancy charge, lease rent, etc.

On a Final Note

I have tried to explain the concept of maintenance charges and some of the services for which you might need to pay the charge. It is very apprehensible that larger the society you live in more will be the charge.

Nevertheless, you, as a resident of the society/building have the right to ask for the details of the charge that you pay for the maintenance. You might also raise questions or might suggest modifying the charge if you feel that your suggestion might benefit the entire community.

Well, that’s all for this topic. I hope that you could gain proper insight from it. Nevertheless, it is always advisable to consult with professionals before deciding on buying a real estate property. This is going to help you in several ways, including the avoidance of unnecessary charges that you might be compelled to pay.

The experts of Roodland India might guide in a proper way for this. So, wait no more and drop a mail at info@roodland.com for getting in touch with our team.

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