A Guide For Determining The Maintenance Cost Of A Flat
The size of your apartment and the amenities offered by your complex or society has a major impact on how much upkeep will cost you. As you put money down over the course of your life, owning a home is like realizing a dream. However, you must bring up the maintenance costs throughout the price-negotiating process in order to make a wise purchase decision. Additionally, you should be aware of what is included in this price as well as the laws that protect both buyers’ and sellers’ rights.
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The first additional costs that spring to mind when purchasing a home are stamp duty and registration fees. The cost of maintenance, which is an ongoing expense, must be included in before you purchase a home, and it is an additional cost that you will have to bear.
What does this upkeep cost? This is the price paid for maintaining the exterior of the apartment, the water supply system, the building’s common areas, and any other facilities that would be a part of the complex and society.
Factors to Consider When Calculating Maintenance Costs
Generally speaking, maintenance costs cover the costs associated with maintaining all the common areas you share with other apartment owners. You must pay a fee to the residential welfare society for this on a monthly or annual basis. Additionally, the sizes of your apartment as well as the amenities you use heavily influence this price.
If you don’t consider these fees when making your purchase, you can be forced to pay the price the welfare society demands after obtaining your property. Therefore, you must determine and negotiate maintenance fees before signing the property documents. You have the right to ask about these costs, which is more significant.
You must go over the details of the property ownership provision with the seller if it calls for you to pay the maintenance charge in advance. Furthermore, up to INR 7,500 in property maintenance charges, you are exempt from paying GST, according to government regulations. Only if the price is more than this amount does GST apply.
There are a few more factors to take into consideration when purchasing a property that is still being built, including the transfer process, documentation needs, pricing negotiations, etc. Even though there are many things to consider before buying a fully built property, there is more homework to be done when buying a flat or apartment that is still under construction and figuring out upkeep costs.
Understanding Accurate Maintenance Cost Calculation
Your flat maintenance fee includes a variety of charges. Every homeowner in the community must pay some expenses, while everyone else shares in others equally. Additionally, you must determine the maintenance of a non-occupancy charge for your apartment if you keep it empty after the purchase. This is true even if you don’t reside there because services like security, housekeeping, etc., are offered to keep your apartment maintained and secure.
The following table lists the numerous types of fees used to estimate the cost of maintaining your apartment or home:
| Types of Flat Maintenance Cost | Applicability of Maintenance Cost |
| Sinking fund | 0.25% or higher amount of each flat’s construction cost. |
| Non-occupancy cost | 10% of the service charges for unoccupied or rented property. |
| Service Expenses like security, housekeeping, electricity supply for common areas, etc. | Divided equally among all the property owners. |
| Elevator repairing charges | Equally paid by all the flat owners of a building. |
| Parking cost | Number of parking slots occupied by flat owners. |
| Repairing the building | 0.75% of the construction charge of every flat. |
| Water charges | Total water consumption or number of inlet taps of a flat. |
| Sinking fund | 0.25% of each flat’s construction cost, charged annually. |
Different Factors Considered in the Maintenance Cost Calculation
Now that you are aware of the various charge kinds that are taken into account when determining the maintenance costs of a flat, it is time to grasp what these types mean.
To help you better comprehend each category, the following details are provided:
Repair and maintenance charges: Before you calculate maintenance costs, you must first pay for services like internal roads, drainage facilities, a pumping system, an elevator, security equipment or devices, generator facilities, street lights, and other similar common amenities.
Service charges: These expenses cover things like electricity in public spaces, lift drivers, parks and gardens, security, cleaners, etc.
Vehicle parking fees: If you own a car & park it in a specified space, these fees will be assessed. The prices for two- & four-wheelers also differ.
Non-occupancy fee: If you are not dwelling in your apartment, you will be assess this fee.
Water charges: Water charges are based on the number of water inlets in your apartment.
Sinking charge: An emergency fund is set aside in case of unforeseen situations. The amount of this fee is determined by the housing organization’s governing committee.
Property Tax: Property taxes are levied as compensation for property ownership. The state’s designated authority is in charge of collecting this tax.
Default payment interest: Interest for late payments only applies to people who have fallen behind on a variety of maintenance fees. For late payments, you will be charged a maximum penalty of 21% annually.
Insurance premiums: The majority of construction equipment is annually insure. As a result, each resident must divide the annual insurance payment and determine maintenance fees for them individually.
Rent fees: You must pay these fees if you choose to rent or lease a unit. Typically, it is determin using the square foot size of the land area.
RERA Guidelines for Maintenance Cost Calculation
The Real Estate Regulation & Development Act, or RERA Act, of 2016 mandates that developers clearly explain all fees in the builder-buyer agreement. These include payment plans, service charges, and an accurate description of each to prevent misunderstandings later on.
The key elements that influence how maintenance fees are determin are as follows:
- The builder and the property’s buyer must agree to a maintenance agreement.
- Both the builder and the buyer must consent to making prompt payments of the maintenance costs, such as monthly, semi-annually, quarterly, or annually.
- The builder is responsible for determining the frequency and cost of maintenance fees and adequately disclosing them.
- Up until the apartment is turned over to the buyer, the builder must make every attempt to cover the cost of upkeep.
- Following the ownership change, the owner of the apartment is responsible for paying all maintenance fees. However, the renter is in charge of making payments and figuring out maintenance costs if maintenance costs are mentioned in the rental agreement.
- Depending on the services offered by societies, maintenance expenses could range from Rs. 2 to Rs. 25 or even more each month.
- Builders may demand payment for the next 12 to 24 months’ worth of maintenance fees when the ownership contract is sign.
Conclusion to Calculating Flat Maintenance
For the best amenities inside and outside your home, you must pay the flat maintenance fee. To make a wise and educated purchase decision, you must weigh the price charged by the builder against the amenities provided by the housing society. In general, initiatives that provide you a clean, comfortable environment demand a little more upkeep. Therefore, you should focus on amenities that make a property worth living in rather than choosing low prices. You could think about conducting online research to seek expert assistance if you want more details on various areas of owning a home that meets the needs of your family.
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