Term Of The Day: Maintenance Charges
Term Of The Day: Maintenance Charges
Maintenance charge is levied on apartment owners or residents for maintenance and operations of areas that are commonly owned inn a residential complex.
PropTiger Explains Maintenance Charges
Typically, maintenance charge in apartment complexes and residential societies is collected monthly, quarterly, semi-annually or annually. In some cases, every flat owner pays an equal amount of money, but in some cases, maintenance charges are levied on the basis of the size of the apartment.
The quality of construction materials used in residential projects play an important role in the maintenance charges you pay. If the builder has used poor quality construction materials, the flat might cost you less, but maintenance charges are likely to be higher. The quality of maintenance services matter more than what people imagine because if not done well, maintenance costs would rise. Moreover, if maintenance services are poor, the future value of flats would decline.
Residential societies generally have a fund for carrying out maintenance services, and flat owners can contribute to it. Such societies levy maintenance charges for carrying out repairs and for maintaining the society. In residential societies, if it is mentioned that money is collected for “building maintenance charges”, the fund must be used for repairing and maintaining the buildings or structures. The accounts of the residential society must be subjected to third-party audits. The accounts must also be scrutinized by the registrar of societies and should be made accessible to members, on demand. In many cases, flat owners feel that the society does not do the best job possible. Maintenance can be carried out by a professional agency as well, and in such cases, allegations of misappropriation of funds and poor quality services are rare.
In some expensive residential societies, monthly maintenance charges can be as high as Rs. 1 lakh or more a month.
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