Society Maintenance Charges In 2025 (Detailed Overview)

Owning a house is not only considered as pride but it requires a commitment to managing the regular costs & society maintenance charges for the facilities provided to you.

Housing societies offer you multiple benefits such as shared amenities & a sense of community. To maintain the amenities & other necessities of society, the society maintenance charges are been collected from the residents to offer ease & comfort within the society.

Many people say society maintenance charges are complex cum necessary evil. 

But the fact is don’t consider it a concern but consider it an essential investment for you to have a comfortable & better living experience. Over that, you also have to know that those charges are as per the law.

Society maintenance charges are collected monthly, bi-annually or annually. It is dependent on the area of the flat, the society type, and the quality of the provided services in the housing society.

Society Maintenance Charges For Residential Property

Society maintenance charges for the residential property include a recurring payment from the residents to the society management committee.

Following charges helps the housing association manage the costs of common areas like elevators, gardens, staircases, security systems, etc.

These charges are also utilized for the repair & replacement of common facilities over time.

Society Maintenance Charges For Commercial Property

While society maintenance charges are commonly associated with residential units, commercial property owners within a housing society might also be subject to these charges.

Society maintenance charges for commercial property could differ from those for residential units due to the nature of facility usage. 

Businesses tend to put more strain on shared facilities, which can impact the overall maintenance costs of society. 

Due to this, commercial property owners often pay higher maintenance charges to account for this increased usage and wear & tear.

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7 Types Of Society Maintenance Charges

Model bye-laws usually vary from state to state, however, the basic structure is the same. The detailed guidelines for the society maintenance charges set by the Maharashtra state have been used by other states by little permutations & combinations over that.

And the charges are diversified as below.

• Service Charges

Charges used for acquiring the services & amenities come under this category. And this is not limited to the electricity of common areas, lifts, watchmen, cleaning crew, operators, gardeners, etc.

“Service charges are equally distributed to each of the residents.”

Internal road, drainage, generators, tanks, street lights, pumps, & security equipment maintenance & repair charges are also included in the service charges section of society maintenance charges.

• Parking Charges

The parking charges basically apply to one who owns the vehicle. These charges are fixed by the society as it will be different for two-wheeler & four-wheeler vehicles.

• Non-Occupancy Charges

The Non-occupancy charges are the amount that needs to be paid to the society even if neither you nor your family members are residing in the flat.

The thing to remember is that non-occupancy charges should not be higher than 10% of service charges.

• Sinking Fund

The sinking fund is the emergency fund that is received for unforeseeable situations by the housing societies. And it is 0.25 percent per annum of the cost of construction of each flat.

• Property Tax

The local authority of the state decides the charges that need to be received from residents as property tax.

Over delay of the payment, the resident will be liable to the interest over the defaulted dues. 

Varying over societies, the interest on unpaid property taxes is around 21% annually on the amount.

• Insurance Charges

Expenses for insuring the building & equipment will need to be paid by the residents as charges.

Residents don’t pay insurance premiums for shops or flats utilized for commercial objectives by others in the residence.

• Rent Charges

Rent charges depend on the built-up area of the flat.

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How To Calculate Society Maintenance Charges?

Calculation of the society maintenance charges can be diversified into 3 types such as

• Per Square Feet

This kind of calculation is done in the scenario of different apartment sizes.

Here, your maintenance charges are structured around the total square feet of the apartment. In India, the builders can charge Rs. 2 to Rs. 25 per square foot, depending on the area of the flat and the city.  

The range of maintenance charges determines the offered services and the quality of amenities.

For Rs 2 per sq. ft & 500 sq. ft apartment, you will be required to pay Rs. 1000 as the society maintenance charges.

And for a 1000 sq. ft apartment, you will pay Rs. 2000 as maintenance charges.

So, large-sized apartment owners will pay more maintenance costs compared to small-sized apartments even though the utility of the services may be similar. This is the major drawback of this method.

• Equal Maintenance Cost

Here, the total maintenance cost that needs to be collected in one month will be added & later it will be equally distributed to all the residents as the maintenance cost.

This method ensures a fair deal for all the residents.

• Hybrid Maintenance Cost

This method is a combination of the above two methods.

Square feet-related costs are charged for the particular kind of components such as sinking funds, repair & maintenance charges. 

And the equal maintenance costs are charged for services fees, lift, & other expenses.

For other categories of expenses, model bye-laws have specified guidelines.

This kind of method helps to have a fair & unbiased separation of society maintenance charges.

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GST On Society Maintenance Charges

Maintenance charges paid by residents to their Resident Welfare Association (RWA) are granted an exemption if the billed amount remains within the threshold of Rs. 7,500 per month, per member. 

This exemption was increased from the earlier limit of Rs. 5,000 effective from 25th January 2018.

Goods and Services Tax (GST) becomes applicable to the entire annual maintenance charge amount.

This regulation aims to provide relief to residents by exempting them from GST for reasonable maintenance charges, fostering a balanced financial environment within residential communities.

Is It Necessary To Pay Society Maintenance Charges?

In independent apartment ownership, residents typically cover individual expenses for amenities and services. 

This is in contrast to housing societies where residents collectively share maintenance costs, an obligation resulting from participating in a larger cooperative framework. 

And it is necessary to pay the society maintenance charges to the housing committee from the residents.

Upon becoming a registered member of a housing society, individuals enter into a mutual agreement through a maintenance contract with the builder or management. 

This contractual arrangement establishes the legal responsibility of both parties to fulfill their designated obligations.

Also, under Section 4 (d), RERA has made it clear for the builders to take reasonable maintenance charges from the residents till the Residents Welfare Association is formed.

Builders should mention the required maintenance charges in the allotment letter, as prescribed in the RERA Guidelines.

Can Society Maintenance Charges Be Increased?

Housing societies have the right to revise and increase maintenance charges when necessary. However, this process typically involves following certain procedures and guidelines. 

Society members must be informed well in advance about the proposed increase, and there should be transparent discussions about the reasons behind it.

Societies often hold meetings where residents can voice their opinions and concerns. The decision to increase maintenance charges is usually made collectively by the management committee or association after taking resident feedback into account.

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Supreme Court Judgement On Society Maintenance Charges

The Supreme Court’s verdict on society maintenance charges has established significant guidelines for residents and property owners in housing societies. 

The ruling emphasizes that all purchasers of housing units, regardless of occupancy status, are legally obligated to contribute to maintenance charges. 

This ruling underscores the importance of collective responsibility in maintaining shared amenities and facilities.

The judgment clarifies that irrespective of whether a unit is occupied or unoccupied, maintenance expenses are to be shared among all unit buyers. 

This approach ensures fairness and equitable distribution of maintenance costs, promoting a well-maintained and harmonious living environment within housing societies.

The Supreme Court’s decision acts as a crucial reference point in legal matters related to society maintenance charges, offering clarity on the rights and responsibilities of unit owners.

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