There are many of the responsibilities and joys when you own a flat in India. There are many of the perks of living in a residential complex such as safety of your family, convenience of modern amenities etc. However, in order to continue get benefits of these services you need to pay some Monthly maintenance charge. This is the fees which helps to run the building smoothly which covers everything from security to cleanliness to repairs as well. But have you ever wondered how is this fee calculated? What are the factors that influence them? How can you reduce them? If not then, make sure to follow this post till the end, so you will get every important information.
What Are Monthly Maintenance Charges?
Monthly maintenance charges can be considered simply as fees that are collected by the housing society or management committee. This fee helps to cover the operation and upkeep costs of residential complex. Not only this, but there are many of the essential services such as water supply, power backup, sanitation, landscaping and security which requires to be continued without interruption. If you are a flat owner, then this charge is not an option for you as they are important to ensure smooth functioning of the building and its facilities. In India, these charges can be different based in different factors such as location, type of housing complex, and amenities as well. If you prefer to live in a metropolitan city in a luxury apartment then it would cost you high as compared to mid-range flat in smaller town.
How Are Monthly Maintenance Charges Calculated?
There are different process and methods to calculate these charges based on society, but there are some of the common points in every way:
- Per square foot method: this method is commonly used. Under this method, the charges are calculated as per the size of your flat. However, larger flats would charge more as they have more utilities and resources.
- Flat rate method: there are some of the societies who opt for a uniform charge for all flats irrespective of their size. However, this method is simple but it seems unfair to owners of smaller flats.
- Hybrid method: in some of the cases, societies combine the flat rates for common facilities with additional charges based on square footage for personalised services.
- Service based charges: there are some of the societies who prefer this type of methods. This methods calculates charges on the basis of amenities used such as swimming pools, gymnasiums or clubhouses.
Apart from these, societies also allocate some portion of charges to sinking fund. This fund is reserved for major repairs and renovations.
Factors Affecting Maintenance Charges
Here are some of the factors that impacts the amount of maintenance charges:
- Location: when you choose to live in a flat in prime urban areas then they have higher charges as they have increased prices for services and personnel.
- Amenities: there are additional facilities such as elevators, swimming pools, gyms and landscaped gardens which adds up to the charges.
- Age of the building: when you choose to live in an older building then it requires more upkeeps and repairs which results in higher maintenance.
- Staff salaries: one of the factors for higher maintenance charges are salaries of security guards, maintenance staff, and office personnel.
- Utilities: there are utilities such as water and electricity bills for common areas which are also added into maintenance charges.
- Contractor costs: there are some of the outsourced services such as pest control or landscaping can also add upto overall expenses.
These are the main points of fluctuation of maintenance charges.
How to Reduce Monthly Maintenance Charges?
Maintenance charges are necessary to continuous smooth operation of complex, here are some of the ways to reduce them:
- Optimize resource usage: keep an eye on usage of water, electricity and other utilities to reduce the consumption costs.
- Cut unnecessary amenities: if there are some of the facilities such as gym or swimming pool etc that mostly people don’t use then can discontinue them. This helps to save costs.
- Negotiate contracts: societies have the option to renegotiate contracts with service providers to achieve better rates.
- Volunteer efforts: residence can come together to volunteer for administrative tasks. This helps to reduce the staff salaries.
- Switch to renewable energy: societies can introduce the use solar panels which helps to reduce electricity bills over time.
- Regular maintenance: one of the point that can reduce maintenance charges is regular maintenance. This helps to prevent costly breakdowns and emergencies.
- Transparent auditing: take some time out to audit of expenses can help identify areas where money is being wasted or mismanaged.
Monthly Maintenance charges for flats in India is necessary aspect of apartment living that every flat owner should understand. However, they can be sometime like financial burden but are important to play crucial role in keeping your residential complex running smoothly. It is important to know how are they calculated, what are the factors that influence them or what are the approaches that can reduce them.
