An In-Depth Overview of Apartment Maintenance Charges Calculation: Expert Insights 2025
Monthly maintenance charges in India range from ₹2 to ₹25 (Rs 2-25) per square foot for apartments. Therefore, it is essential to understand how apartment maintenance is charged before committing a purchase.
For example, the apartment owners’ monthly charges in Mumbai may typically cost ₹4,000 to ₹15,000, while Hyderabad’s charges tend to cost ₹1,500 to ₹6,000 for the same services.
These charges must cover essential services such as cleaning, security, repairs, and the upkeep of common amenities. Society Maintenance Charges in India can be calculated using the traditional per square foot method, as well as equal charging methods, or a hybrid system of both an even charge for services and a charged area basis for maintenance (if applicable). These models guide homeowners in planning their monthly budgets accordingly. The guidelines for 2025 also mention that your monthly charges will also be shaped by RERA compliance and any one of a number of variables affecting your monthly engagement.
What are Apartment Maintenance Charges?
Apartment maintenance charges are basically monthly fees that residents pay to maintain the common facilities and services in the residential complex. These charges enable a housing society to maintain all of the operational processes to run smoothly, as well as aid in sustaining property value over the years.
So, how are the apartment maintenance charges calculated? Apartment maintenance charges are recurring monthly, quarterly, or yearly fees that housing societies collect to maintain, manage, and operate common areas that are not owned individually by the apartment owners. Common areas could include a garden, swimming pool, gym, or clubhouse.
Living in a gated community comes with access to many shared facilities, which comes with the responsibility for routine maintenance. This is the primary reason for why flat owners must pay the apartment maintenance charges.
What Is Typically Covered By Apartment Maintenance Charges
| Component | Details |
| Salary of Core Team Members | Security guards, janitors, electricians, plumbers |
| Maintenance and Upkeep of Facilities | Lifts, water pumps, club house, drainage systems, society office. |
| Utilities | Electricity and water in the common areas |
| Emergency and Repair Fund | To save for unexpected major repairs in the future |
| Community Events | Festival, functions and social gatherings within the society |
Section 6 of the Real Estate (Regulation and Development) Act, 2016 mandates all apartment owners contribute towards maintenance costs. Many societies will also allocate funds to a “Sinking Fund“, which would be for future large projects such as repainting, lift replacements, or other major repairs–which has also generally had the oversight of funding and managing the costs of the works involved in these projects.
When your monthly payment is above ₹7,500 and the society has an annual turnover above ₹20 lakhs, you are liable to pay GST at 18%.
How is Apartment Maintenance Calculated in India?
Housing societies generally have three main models of Society Maintenance Charges Calculation which have varying consequences for residents:
1. Per Square Foot Model
The most common model used in India is based on apartment size.
For example: A flat size of 1,000 sq ft at ₹3 per sq ft = ₹3,000/month.
Advantage: Fair when contemplating small units.
Disadvantage: For bigger units, payment relies on space and they may pay more irrespective of actual consumption.
2. Equal Distribution Model
Total costs appear on an equal basis to all units. Size of the apartment is not taken into account.
This model is suitable for: Societies with comparable unit sizes.
Limitation: Small apartment owners may believe they overpay.
3. Hybrid Model
Fixed costs (e.g. improvements in security cost, electricity, etc.) divided on equal basis.
Variable costs (e.g. repair, sinking fund, etc.) divided according to apportionment of size/area of apartments.
Commonly regarded as a fair system.
Recommended in the Maharashtra Cooperative Societies Model Bye-Laws.
Some societies even have “pay-per-use” options, meaning that residents only pay additional costs for the uses of amenities such as a gym or clubhouse if they actually use them.
An Explanation of what Society Maintenance Charges cover
Common Area Maintenance
Corridors, Stairwells, lobbies, terraces, gardens, and daily cleaning
Security and Utilities
Salaries for Security, CCTV maintenance, upkeep of lighting, water, and sewage systems
Sinking Fund and Repairs
0.25% of the building price for future repairs, lift maintenance, plumbing, electrical work
Other Charges
Building Insurance, administrative costs, non-occupancy charges, parking, etc.
GST on Maintenance Charges
Following are the points for essential GST charges on maintenance
- 18% GST is applicable if both of the following are true:
- Monthly Maintenance Charges for a flat are greater than ₹7,500.
- The Society has an annual turnover of greater than ₹20 lakhs.
- Taxes such as property tax, water bills, and non-agricultural tax do not fall under GST.
Conclusion
It is important to know how apartment maintenance (ranges from ₹2 – ₹25 per sq ft) is factored into your investment decisions with Real Estate in India, and the completed method of Society Maintenance Charges Calculation (per sq ft, equal split, or hybrid) significantly alters the monthly costs. Rather than seeing maintenance payments as an expense, view it as an investment in the life of your home and your quality as a resident. RERA rules and GST rules provide awareness on actions to value while managing acceptable decisions in your Society after 2025.
FAQs
Q1. What are apartment maintenance fees and why do they matter?
Apartment maintenance fees are fees charged regularly for the management and upkeep of shared facilities in residential societies. Maintenance fees ensure safety, cleanliness, and maintenance of the infrastructure, thus maintaining the value of the property.
Q2. How are apartment maintenance fees calculated in India’s apartments?
In India, fees are calculated using one of three models, based on either per square foot of apartment area used, the equal distribution of costs among owners, a hybrid distribution of both. These methods determine what each owner will pay.
Q3. What does the fee cover?
Maintenance fees cover laundry facilities or other consumables; staff or member salaries, utilities repair, garbage and general cleaning, common-use amenities (swimming pools), a sinking fund towards future large expenditures (roof repairs), and insurance for the society.
Q4. Is GST paid on apartment maintenance charges?
Yes, only when the monthly maintenance charges exceed ₹7,500; and the society’s turnover exceeds ₹20 lakhs.
Q5. What is the ballpark for cost in Indian cities?
Varies widely: average ₹4,000–₹15,000 in Mumbai and ₹1,500–₹6,000 in Hyderabad. The national average is ₹2 to ₹25 per sq. ft, per month.