Maintenance charges for apartments is fixed by the owners of the apartment.
Every Housing Society or Apartment Owners Association at its formative stages has to decide on the structure of Society Charges it will collect. This is called Maintenance charges for apartments.
‘Maintenance charges for apartments’ is one of the topics in the real estate realm. While most, if not all, the apartment owners have to pay these common maintenance charges.
When a rental property is contained in an apartment block or housing development, either the tenant or the landlord may be expected to pay an annual service charge. This charge will usually cover maintenance and repair work in communal areas.
These charges cover the costs incurred on amenities. The costs incurred on common areas, elevators, terraces, parking areas, expenses for building repair (covering all the charges for new additions and other structural changes). The costs also includes water charges, parking charges, property tax, insurance premium charges, common electricity charges etc.
Real Estate Regulation Act
The Indian Parliament has passed an Act known as Real Estate (Regulation and Development) Act in 2016 – the most important flat maintenance charges law in the country. This Act has established the long awaited Real Estate Regulatory Authority (RERA) in order to ensure transparent selling and buying process of all types of properties.
The builder or developer is responsible to provide maintenance for the sold property on a regular basis, the charges of which as Maintenance charges has to be borne by the resident. However, it ensures that these charges are reasonable.
Government’s move to regulate maintenance charges for apartments:
The State government has issued a circular/notice that persuades the apartment associations to register. The registration comes under The Karnataka Co-operative Societies Act, 1959.
There are increasing complaints on financial misuse and misappropriation by the apartment owners and associations.
All the apartment buildings, associations or societies charge for maintenance and indulge in financial activities. There are no proper regulation if the apartment association is not registered under Karnataka Co-operative Societies Act, 1959 or Karnataka Ownership Flat Act, 1972.
Residents who are living in the apartments are paying charges towards maintenance and they also own an undivided share of land on which the building stands.
It is mandatory to register the apartment associations under the Karnataka Co-operative Societies Act or Karnataka Flat Ownership Act. This helps in bringing financial accountability.