What Are Maintenance Charges on Flats?

In modern apartment living, flat maintenance charges are the backbone of a well-managed housing society. These collective contributions keep the premises clean, safe, and functional, forming the foundation of sustainable community living.

Maintenance charges in apartments ensure residents enjoy uninterrupted access to common facilities while preserving overall property value. So, what are maintenance charges in real estate?

How are flat maintenance charges calculated per sq. ft.?

Maintenance charges are usually calculated by multiplying the flat’s carpet area or built-up area (in sq. ft.) by a rate fixed by the builder or housing society.

In cases where two flats are clubbed or partially merged, the total occupied carpet area and built-up area increase. Even if the original construction layout remains similar to a 2 BHK, the flat will not be treated as a standard 2 BHK for maintenance purposes. Instead, maintenance will be calculated based on the increased total area, and such units may be classified under a higher category (for example, equivalent to a 3 BHK) as per the society’s maintenance policy.

Maintenance charges are therefore area-based, not solely dependent on the number of bedrooms, and are applied according to the actual occupied and approved built-up area.

To put it simply, they are recurring fees paid by residents to cover the upkeep, repair, and daily functioning of shared facilities and common areas in a housing society.

Many homebuyers assume maintenance is a one-time or builder-funded cost, while tenants often believe landlords should pay it. In reality, these charges are a shared and continuous responsibility that begins after possession. In larger projects, builders may levy a provisional amount for essential services, which should always be clearly stated in the sale agreement.

What are Maintenance Charges in Real Estate?

Maintenance charges’ meaning in real estate is simple to understand; they are regular payments made by residents to maintain and manage the common facilities of an apartment or housing complex. They cover everything that contributes to collective comfort, from cleanliness to lighting, lift servicing, waste management and more

The Real Estate (Regulation and Development Act), or mandates that developers disclose the estimated maintenance charges, tenure of responsibility, and terms before selling a property. Builders remain responsible for maintenance until the association of owners or society is formally registered. Transparency in collection and utilisation is a legal requirement:

Why Societies Collect Maintenance Fees

The residents’ welfare association or housing society collects the property maintenance charges after handover. The fees are then used to fund daily operations, repairs, and preventive maintenance. The collected amount ensures the continued upkeep and long-term sustainability of the property.

So, what is included and not included in the society maintenance charges? Let’s take a quick look:

Common Calculation Models

Property maintenance charges cover several operational and infrastructure-related expenses, including:

• Housekeeping and Sanitation: Corridor, staircase, and common space cleaning.
• Common Electricity: Lighting in shared areas, parking lots, and garden pathways.
• Utility Services: Maintenance of water pumps, overhead tanks, and sewage systems.
• Lift AMC (Annual Maintenance Contract): Safety checks, lubrication, and repair work by authorised service providers.
• Security Management: Guard salaries, CCTV systems, and access control.
• Wifi & Internet Connection Charges for CCTV Cameras Access. (Access is Restricted to Maintenance Team Only).
• Garden and Landscaping: Upkeep of lawns, plants, and outdoor aesthetics.
• Waste Disposal: Regular garbage collection and composting.
• Power Backup/Diesel: Generator maintenance and fuel replenishment.
• Clubhouse/Gym/Pool Upkeep: Cleaning, servicing, and equipment repair.
• Technology and Access Control: CCTV cameras, intercoms, and smart entry systems.
• Repairs and Sinking Fund: Reserved for long-term repairs like repainting or waterproofing.
• Fire-safety AMC: Regular inspection, servicing, and repair of fire alarms, extinguishers, sprinklers, and hydrants.
• STP & WTP Maintenance: Routine cleaning, monitoring, and servicing of sewage and water treatment plants.
• Common Area Insurance: Insurance for shared areas such as lobbies, corridors, clubhouse, and parking.
• Society Administrative Costs: Staff salaries, accounting, stationery, software, meetings, and general management.
• Pest Control: Regular treatment to prevent rodents, insects, and other pests in common areas.

Types of Maintenance Charges on Flats

Housing society maintenance fees use different billing structures depending on the project type and offered amenities.

• Per Sq. Ft Model: Charges are based on the flat’s carpet area; larger apartments pay more.
• Fixed Contribution: Equal amount for all residents, regardless of flat size.
• Variable or Usage-Based: Linked to the consumption of utilities like water or power.
• Hybrid Model: Combines a fixed base charge with variable usage costs.
• Tier-Based: Premium residents, such as those living in a penthouse, pay higher rates due to added facilities.
• Pay-Per-Facility: Optional contributions for services like gym or pool usage.

How Are Flat Maintenance Charges Calculated?

So, how are maintenance charges calculated in apartments? Most builders or societies adopt different methods to arrive at the monthly maintenance values. The charges usually depend on the project size, number of residents and total operational costs.

Common Calculation Models

• Per Sq. Ft Method: This method calculates apartment maintenance charges per sq ft based on flat size and amenities.
• Equal Per Flat: This method is more ideal for smaller buildings with uniform units.
• Amenity-Based Pricing: Additional costs are charged for common area maintenance and access to clubhouses, pools, etc.
• Itemised Billing: Each service is billed separately for complete transparency.
• Facility Management Model: Outsourced professional agencies manage all operations for a fixed service fee.
• Corpus Fund (One-Time Payment Model): One-time contribution collected during possession for future repairs.

Sinking Fund Model (Formula + % Range): Shows how much to save yearly for major future repairs using a set formula and percentage range.

Here is an example of how some of these methods work:

Average Maintenance Charges in Major Indian Cities

Here’s a city-wise comparison of typical maintenance charges to help you understand market trends.

Who Pays Maintenance Charges: Owner or Tenant

The question: who pays maintenance charges – owner or tenant, is very common among those who are looking for a place to live. In India, the tenant pays the monthly maintenance, with the amount covered under the rent. The owner, on the other hand, covers one-time or annual funds such as sinking or corpus contributions.

Legally, the rent agreement should clearly state these terms to avoid disputes. The builder bears the maintenance charges before possession is handed over, or the society is formed. In case the tenants default, the owner remains legally accountable for payment.

Legally, the rent agreement should clearly state these terms to avoid disputes. The builder bears the maintenance charges before possession is handed over, or the society is formed. In case the tenants default, the owner remains legally accountable for payment.

Guidelines for Maintenance Charges

Before Handover: At this stage, builder maintenance charges are valid, so the developer is responsible for upkeep, and legally cannot impose any maintenance fees on the buyer. For example, if you buy your dream home, the maintenance charges will be paid by the developer until you get the possession.

After Handover: The housing society or association takes over, imposing maintenance charges after possession, and has to maintain some clarity in expenditure and billing.

Timeline: Builders may charge only after offering possession or providing essential services.

Transparency: Maintenance rules mandate full disclosure of these charges and utilisation to homebuyers.

GST and Legal Aspects of Maintenance Charges

GST on maintenance charges are applied at 18%, but only if the monthly maintenance exceeds Rs 7500 per member, and the society’s annual turnover crosses Rs 20 lakh. However, the GST exemption limit applies to basic utilities and services provided by local authorities, like water supply or garbage collection.

Housing society GST rulesmandate that invoices, audited accounts and tax returns have to be issued to ensure compliance and transparency.

Common Disputes Related to Maintenance Charges

Maintenance disputes among homeowners and builders are common in the real estate sector.

Some of these issues include:

• Builder Charging Before Handover: This can be challenged under RERA.
• Arbitrary or Unequal Charges: Without clear calculation or justification of Expense
• Transparency: No disclosure of how collected funds are used.

How to Resolve?

Most builder vs owner maintenance charges conflicts can be resolved by filing complaints. Consumer protection laws and the co-operative registrar can also help solve these issues. Many societies also appoint independent auditors for neutral verification.

How to Reduce or Manage Maintenance Charges?

• Consolidate AMCs: You can merge service contracts for better pricing and reduce maintenance costs.
• Adopt Renewable Energy: Solar panels can help reduce electricity bills.
• Water Recycling: Use treated water for activities like gardening or flushing.
• Smart Billing: Install individual meters for fair usage tracking.
• Vendor Audits: Review vendors regularly to eliminate wasteful spending and manage society charges properly.

Checklist for Buyers Before Paying Maintenance

Here is a detailed checklist you can refer to when you are buying a home and want to know more about the society maintenance charges.

• Request a detailed breakdown of costs.
• Verify if the builder or society is registered.
• Verify GST applicability and exemption criteria.
• Confirm whether possession has been granted.
• Understand what is included or excluded from the charges.

Conclusion

Maintenance charges often seem like a routine, but they are vital for the long-term value, livability of any housing project and apartment upkeep. Understanding how they are calculated, regulated, and managed helps homeowners make informed decisions and avoid unnecessary disputes. Paying these fees is the flat owner’s responsibility

Know your rights under the apartment before paying the builder maintenance. Knowing the maintenance charges rules ensures transparency today and peace of mind tomorrow. Maintaining transparency ensures better long-term livability.

 FAQs

1. What are maintenance charges in flats?
Maintenance charges in flats are recurring payments collected to maintain and manage shared facilities such as lifts, gardens, parking areas, security systems, and common utilities.

2. How are flat maintenance charges calculated per sq. ft.?
Maintenance charges are usually calculated by multiplying the flat’s carpet or built-up area (in sq. ft.) by a rate fixed by the builder or housing society.

3. Who pays maintenance charges – owner or tenant?
Tenants generally pay regular monthly maintenance charges, while owners are responsible for long-term funds such as sinking fund or major repair reserves.

4. What is included in flat maintenance charges?
Maintenance charges typically include cleaning, lift AMC, security services, water supply, power backup, common area lighting, and administrative expenses.

5. What are the rules for maintenance charges in real estate?
Mandates clear disclosure of maintenance charges and restricts builders from collecting unjustified maintenance amounts before possession.

6. When do builders start charging maintenance – before or after possession?
Builders generally start charging maintenance after possession, although provisional charges may apply if common facilities become operational earlier.

7. Is GST applicable on flat maintenance charges in India?
Yes. If monthly maintenance charges exceed ₹7,500 per member and the society’s annual turnover is above ₹20 lakh, GST is applicable.

8. How can homeowners reduce or manage high maintenance charges?
Homeowners can reduce maintenance costs by optimising resource usage, adopting renewable energy solutions, and conducting regular expense audits.

9. What is the average monthly maintenance cost for flats in major Indian cities?
The average monthly maintenance cost usually ranges between ₹2,000 and ₹10,000, depending on the city, amenities, and project size.