Everything You Need to Know About Maintenance Charges for Your Property
Mar 28, 2017 Home Trading Steps
Arranging funds to buy your dream home is not the ultimate thing you need to worry about. Even after paying for your property, there are several expenses you must be aware of. Maintenance charges are one the most significant expenditures that you need to incur after acquiring possession of your property. Home buyers must be well aware of the maintenance charges they will have to pay periodically while planning to buy a specific apartment.
Let us discuss more about the monthly maintenance charges and what factors decide the value of maintenance charges.
What is a maintenance charge in Real Estate:
In real estate, the residents/owners of the housing society are charged for maintenance and smooth operating of the commonly-owned property areas. This charge is called maintenance charge. It is to be paid periodically by each member of the housing society so as to ensure functioning and maintenance of common facilities such as elevators, water pumps, gardens and lawns, terraces, parking areas, expenses for building repair etc. Every owner is liable to pay the fixed maintenance charges to the housing society as soon as he/she acquires possession of the purchased property. If there is no co-operative society or a welfare association in place, the developer is responsible for the overall maintenance and repairs of the building.
How are maintenance charges decided:
The maintenance charges for a housing society are decided after considering the amenities it has on offer to its residents. Hence, these charges can be computed only after the builder finalises the amenities, quality, and finish of the building and value added services that he intends to provide in the project. So from a home buyer’s point of view, it is very important to find out the approximate amount of maintenance charges he/she would have to pay regularly. Nowadays there are several developers who have been taking up to two years of maintenance charges in advance from the buyers at the time of property purchase.
Depending upon the facility it is being charged for, the maintenance charges can be divided into following types:
1.Service charges: Charge to be collected against various service offerings such as housekeeping, security, electricity supply in common areas etc. The service charges are to be equally divided among all the flats in the society.
2.Expenses required for maintenance and repairs of the building: These charges are made up of around 0.75 percent of the construction cost of the flat and charged every year.
3.Elevator repairs and maintenance: This charge is equally divided among all the flats in the housing society.
4.Non-Occupancy charges: This charge is levied on the flats which have been rented by the owner. It is charged around 10 percent of the service charges.
5.Sinking fund: About 0.25 percent of the construction cost of the flat is charged against sinking fund per year.
6.Water bill Depends on the actual consumption of each flat.
Let us discuss more about the monthly maintenance charges and what factors decide the value of maintenance charges.
What is a maintenance charge in Real Estate:
In real estate, the residents/owners of the housing society are charged for maintenance and smooth operating of the commonly-owned property areas. This charge is called maintenance charge. It is to be paid periodically by each member of the housing society so as to ensure functioning and maintenance of common facilities such as elevators, water pumps, gardens and lawns, terraces, parking areas, expenses for building repair etc. Every owner is liable to pay the fixed maintenance charges to the housing society as soon as he/she acquires possession of the purchased property. If there is no co-operative society or a welfare association in place, the developer is responsible for the overall maintenance and repairs of the building.
How are maintenance charges decided:
The maintenance charges for a housing society are decided after considering the amenities it has on offer to its residents. Hence, these charges can be computed only after the builder finalises the amenities, quality, and finish of the building and value added services that he intends to provide in the project. So from a home buyer’s point of view, it is very important to find out the approximate amount of maintenance charges he/she would have to pay regularly. Nowadays there are several developers who have been taking up to two years of maintenance charges in advance from the buyers at the time of property purchase.
Depending upon the facility it is being charged for, the maintenance charges can be divided into following types:
1.Service charges: Charge to be collected against various service offerings such as housekeeping, security, electricity supply in common areas etc. The service charges are to be equally divided among all the flats in the society.
2.Expenses required for maintenance and repairs of the building: These charges are made up of around 0.75 percent of the construction cost of the flat and charged every year.
3.Elevator repairs and maintenance: This charge is equally divided among all the flats in the housing society.
4.Non-Occupancy charges: This charge is levied on the flats which have been rented by the owner. It is charged around 10 percent of the service charges.
5.Sinking fund: About 0.25 percent of the construction cost of the flat is charged against sinking fund per year.
6.Water bill Depends on the actual consumption of each flat.
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