High-rise living with sweeping city views and premium amenities has become the new norm in metropolitan areas. While these luxuries greatly improve one’s lifestyle, they also come with additional costs that many homebuyers may not anticipate. To help you plan your finances more accurately, Infinity Housing has compiled a detailed overview of the common charges you may encounter when shifting into a modern residential society.
Nothing can dull the joy of purchasing a new home more than discovering unexpected expenses afterward. Since today’s residential complexes emphasise convenience and upscale living, the presence of amenities such as gyms, landscaped gardens and security systems often leads to additional society-level fees. Therefore, before signing your sale documents, it’s crucial to physically inspect the property and request a break-up of all associated charges. Here’s a guide to the standard society-based fees you should be aware of.
Types of Society-Based Charges in India
From upkeep of common facilities to charges related to rental usage, these are some of the most frequently encountered expenses that homeowners should account for:
1. Repair and Maintenance Charges
Repair and maintenance fees are usually one of the first and most essential costs. Many societies collect maintenance charges upfront on a yearly basis, followed by monthly or quarterly dues. These are essential for keeping common facilities—like gardens, clubhouses, elevators and security systems—in optimal condition. Buyers should also consider that penalties may apply for late payment.
2. Water Charges
Older housing societies typically use one or two common water meters, with the total cost divided equally among residents. However, this can sometimes lead to disputes due to varying levels of individual usage. To ensure fairness, societies may adopt the following methods:
- Charges for gardening, car washing, lobby cleaning, swimming pools and fire hydrants are shared among all residents.
- The plumbing layout is reviewed to assess the number of inlets per flat, and charges are calculated accordingly.
In newer societies, water charges are often bundled with the maintenance fee. Asking for a detailed split helps avoid duplicate payments.
3. Common Electricity Charges
These charges include electricity used in common areas such as passage lighting, elevators, bore-wells, compound lights and other shared utilities. Residents typically cannot opt out of paying these fees even if they seldom use certain facilities. Electricity for common areas is usually billed separately from monthly maintenance.
Many societies now use pre-paid meters managed through third-party platforms. When recharging, homeowners should check if additional convenience fees are being added to avoid unnecessary costs.
4. Sinking Fund
A sinking fund is essentially a reserve amount collected to manage major repairs, structural issues or emergency renovations in the future. If the society faces a situation that requires major financial intervention—such as rebuilding unsafe areas or upgrading essential systems—the sinking fund is used.
These charges are collected from all residents, including new homeowners. Outgoing members cannot reclaim this amount once paid.
5. Non-Occupancy Charges
Homebuyers planning to rent out their units should be aware of non-occupancy charges. These fees are imposed when the flat is leased instead of owner-occupied. Typically set at 10% of consolidated service charges, the exact amount may vary based on society rules.
Non-occupancy charges are not applicable when:
- The owner lives in the flat.
- The flat remains vacant.
- The flat is occupied by specific family members (parents, children, siblings, in-laws, grandchildren, etc.).
6. Society Move-In or Exit Charges
Some societies levy a one-time non-refundable move-in charge to cover administrative processes, paperwork, and staff support during relocation. Similarly, an exit fee may be applied when a resident moves out, in addition to outstanding dues. These charges vary significantly depending on the society’s by-laws.
Summary of Society-Based Charges
| Charge Type | Applicability |
|---|---|
| Repair & maintenance | Calculated on a “per square foot per flat” basis |
| Service charges (security, housekeeping, common electricity, etc.) | Equally divided among all flats |
| Sinking fund | Minimum of 0.25% annually of the flat’s construction cost |
| Non-occupancy charges | 10% of service charges for rented-out flats |
| Parking charges | Based on number of allotted parking slots |
| Water charges | Based on usage or number of inlets per flat |
| Move-in / exit charges | As specified under society by-laws |
In Summary
Society-based charges can differ greatly from one project to another. While some residential complexes provide a detailed, transparent cost structure, others may include hidden charges that surface later. Asking questions early and verifying the full financial scope will ensure a smoother, more stress-free homebuying experience.
Frequently Asked Questions
Ideally, societies should not collect maintenance charges before obtaining an OC, as the building is technically not approved for occupation. However, developers may still levy maintenance fees for essential services provided during the interim period (e.g., security, cleaning, electricity in common areas). Always check your sale agreement and local regulations to confirm your rights.
Maintenance is typically calculated in one of the following ways:
- Per square foot rate based on the size of the flat
- Equal division among all units, regardless of size
- Component-based charges, such as housekeeping, security, water and electricity for common areas
Your society’s bye-laws will specify the method used.
Yes. A housing society can revise maintenance charges if approved through a General Body Meeting (GBM). The increase should be justified, documented and communicated to all members. Sudden or arbitrary hikes without member approval are not permissible.
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