How to Calculate Society Maintenance Charges?

A society's maintenance costs are determined in several ways. It comprises hybrid models, fixed rate bases, and per square foot basis, among others. Here is how to calculate society maintenance charges:

• Per Square Foot Basis

It is a popular technique where charges are based on the size of the flat. You can calculate the society maintenance charges by following the formula: 

It is used in high-rise apartments, new apartment complexes, and RERA-registered societies.

For example, suppose maintenance charges in your society are Rs. 2 per sq ft, and your flat’s size is 1200 sq ft. So, the monthly maintenance cost will be Rs. 2400.

• Fixed Rate Basis

Regardless of the size of their apartment, all occupants pay the same amount. This method is used in older cooperative societies as well as in small or medium-sized structures.

Example: Suppose total monthly expenses for society maintenance are Rs. 3,00,000, and the total flats in your community are 100. So, the maintenance charge per flat = 3,00,000 / 100 = Rs. 3,000.

• Hybrid Model

This model is the most transparent and well-balanced. Water and electricity are examples of variable expenses that are determined by the unit's size or usage. 

• Pay-as-you-Use

Additional fees apply for amenities, including clubhouses, restricted parking, and swimming pools. Some expenses are billed separately as they are utilised.

Apart from all these, according to tax legislation, maintenance charges for apartments that exceed Rs. 7500 per month are subject to GST. The actual maintenance rate varies according to the amenities and services offered by the society. This is all about how is maintenance charges calculated in a society.

After buying a 2BHK, I was confused about how to calculate society maintenance charges; hence, I asked the builder to clarify my doubts. I learned that society mostly levies maintenance charges following the per sq ft method. This means that they set a charge per sq ft so if your property is 1,000 sq ft and they levy a charge of Rs 5 per sq ft, your monthly maintenance charge will be Rs 1,000 * 5 = Rs 5,000. There are two other methods so read all of them here. 

How is Maintenance Calculated in Society​?

Maintenance charges in a society are calculated following three methods so here are they:

• Per Square Foot Charge: This method is used when apartments are of different sizes. The charge is based on the total square feet of the apartment. For example, if society levies Rs 5 per square foot and your apartment is 1,000 sq ft, your fee will be Rs 5,000.

• Equal Fee: This method divides the total maintenance cost equally among all residents. It is a simple method but is somewhat unfair for residents who live in smaller apartments, as they all have to pay the same regardless of size.

• Hybrid Fee: This combines both methods, applying square foot charges for components like repairs while splitting other expenses like service fees equally. This method ensures fairness and is commonly used to balance costs between residents of various apartment sizes.

So just clarify how your society’s maintenance charge will be calculated before finalising a property there.

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