Apartment Maintenance Charges Rules and Regulations

The real estate boom in India has played a crucial role in altering the property ownership pattern of this country. People are now leaning more towards shifting into apartments, especially the housing societies as they are becoming convenient and affordable. While staying in an apartment building has many facilities, you need to pay the maintenance charge to ensure everything runs smoothly. But, before you go ahead, you must be aware of the apartment maintenance charges rules and regulations to know your rights and how you need to deal with this.

What are Apartment Maintenance Charges?

Apartment maintenance charge is the fee collected by the residential society for the upkeep of the buildings and complex premises. It covers the maintenance, electricity, service charges, etc., to ensure the best living experience for the residents

Also Check: Society Maintenance Charges In India

What all are Covered in Apartment Maintenance Charges?

Here are some common components of the maintenance charges that you should know about –

1. Building maintenance

This includes all the repairing work and painting of the buildings.

2. Common area maintenance

This constitutes the maintenance of areas like corridors, elevators, playground, garden, etc.

3. Security and surveillance

Costs associated with CCTV, security personnel and other safety measures comes under this category.

4. Utilities

Paying the electric bill, municipality taxes and water comes under utility expenses.

5. Housekeeping

Payment for the housekeeping staff who takes care of the hygiene and cleanliness is an important part of maintenance charges.

6. Administrative expenses

The salary of building maintenance staff and office expenses comes under this category.

7. Contingency funds

A portion of the maintenance charge goes towards creating a contingency fund to take care of unexpected expenses.

Now, keeping a track of all these different categories of expenses and their payment can be a tough ask. Well, you can now bypass this hassle by opting for NoBrokerHood, a single window platform for all the requirements of a residential society. It takes care of security, communication, utility payment, record keeping and what not to ensure the residents have a great living experience.

Also Check: Society Maintenance Charges

How to Calculate Maintenance Charges for Apartments?

According to the laws for apartment maintenance charges, builders in our country can charge from Rs.2 to Rs.25 per square foot as maintenance charges. Now, these are directly proportional to the amenities you receive. So, if you pay a higher fee, you will get better facilities and vice versa.

Having said that, here are the three major calculation methods for housing society maintenance charges –

1. Equal sharing

In this method, the residents of the apartment pays an equal amount for maintenance irrespective of the size of their flat. As a result, the calculation is simple and straightforward, but may not be most equitable.

2. Per square foot

This is a more customised approach, where residents pay for maintenance charges as per the size of their flats. So, if you own a smaller flat, you will be liable to pay a smaller fee and vice versa.

3. Hybrid model

The hybrid model adopted by different societies strike a good balance between the previous two. Usually in these methods the fixed maintenance costs are divided equally and the variable ones are as per the square feet.

Also Check: Apartment Maintenance Charges Calculation

RERA Rules for Society Maintenance Charges

The Real Estate (Regulation and Development) Act, 2016 lays down clear guidelines to ensure maintenance charges collected from flat owners are transparent, justified, and used solely for the upkeep of the property. These rules protect homebuyers from arbitrary or hidden costs and hold both developers and resident associations accountable.

• Upfront disclosure: Builders must sign a maintenance agreement with buyers specifying the amount and frequency of charges, and both parties must agree on the payment schedule (monthly, quarterly, etc.) before possession.
• No profiteering: Maintenance charges cannot be a source of profit for the developer; they must be used strictly for the actual cost of upkeep and services.
• Separate, auditable account: Developers must keep maintenance funds in a dedicated bank account, separate from construction money, and this account must be open to audit and review by residents.
• Time-bound advance collection: Builders can collect advance maintenance charges from buyers only until the Resident Welfare Association (RWA) is formally constituted and takes over.
• Handover to RWA: Once the RWA is formed, the builder must transfer all maintenance funds, records, and common area assets to the association. Charges cannot continue without proper documentation and handover.
• Applies to all stages: These rules cover both under-construction projects (managed by the builder) and completed societies (managed by the RWA).
• Mandatory compliance: RERA maintenance rules are compulsory for all housing societies and developers across India non-compliance can lead to penalties and legal consequences.
• GST applicability: If monthly maintenance charges exceed ₹7,500 per flat, 18% GST applies, and societies with annual turnover above ₹20 lakh must register for GST. Charges of ₹7,500 or below are exempt from GST.

RERA Guidelines on Maintenance Charges (Before Society or RWA Formation)

Before the Resident Welfare Association (RWA) is formed, the builder holds full responsibility for collecting and managing maintenance charges under RERA. This interim phase is closely regulated to protect buyers from overcharging or mismanagement of funds.

Builder as Custodian: The developer is solely responsible for the maintenance and upkeep of common areas, amenities, and services until the RWA is officially constituted and takes charge.

Advance Collection Period: Builders can collect advance maintenance charges from buyers only for a limited, defined period typically covering the early months of possession to fund initial operations.

Separate Escrow Account: Funds collected must be deposited into a dedicated maintenance account, kept strictly separate from construction or project funds, and made available for audit.

Transparent Calculation: The method used to calculate charges (per square foot, equal sharing, or hybrid) along with the exact amount and frequency must be disclosed in the sale agreement itself.

No Arbitrary Increases: Charges cannot be revised or hiked without proper justification and prior communication to buyers during this pre-RWA phase.

Timely RWA Formation: RERA mandates that builders facilitate the formation of the RWA within a stipulated timeframe after a majority of units are sold or possession is handed over, so control transitions to residents promptly.

Handover Requirement: Once the RWA is formed, the builder must transfer the remaining maintenance corpus, all related documents, and a detailed statement of accounts to the association.

RERA Rules for Maintenance Charges After Handover

• Once the society is formed and the handover is complete, the responsibility for maintenance shifts to the residents’ association.

• The Residents Welfare Association (RWA) manages maintenance activities.
• Maintenance charges must be approved in General Body Meetings (GBMs) by society members.
• Audited financial statements should be shared with all members to maintain transparency.
• Any increase in maintenance charges requires the consent of the members.

Apartment Maintenance Charges Rules and Regulations

• As per the RERA Act of 2016, residents are not supposed to pay any ad-hoc cost according to the builder’s discretion.
• The maintenance charges should be disclosed by the builder at the time of booking.
• State governments have maximum and minimum maintenance charges set for societies, and builders cannot ask for more than the amount prescribed by the respective state government.
• The maintenance charges are calculated based on the area of the apartment, so it will vary from one property to another.
• The frequency of the collection of maintenance charges depends on the builder.
• In case the maintenance charges exceed Rs.7500 per month, the resident has to pay a GST of 18% on apartment maintenance 
• The builder must open a separate bank account for the purpose of collection and utilisation of maintenance charges.
• As per the RERA apartment rules and regulations, builders cannot transfer money from the maintenance account and cannot enjoy the interest earned on it. Also, it should not be a source of income for the builders.
• Moreover, the RERA rules for maintenance charges also state that during the handover of the maintenance account to the RWA, the builder must transfer the balance amount along with the account statement.

Also Check: Franking Charges

Tips to Reduce Apartment Maintenance Charges

• Negotiate Vendor Contracts: Actively bargain with service providers for security, housekeeping, and maintenance to get better bulk deals.
• Invest in Preventive Maintenance: Regular checks on plumbing, electrical systems, and equipment can prevent major, costly repairs later.
• Go Green: Implement energy-efficient solutions like LED lighting and solar panels for common areas to reduce utility bills.
• Embrace Technology: Utilize society management systems like NoBrokerHood to streamline operations, track expenses, and reduce the need for excessive staff.
• Promote Community Participation: Encourage residents to participate in cleanliness drives and maintenance tasks to save on external costs.

Also Check: How to Reduce Society Maintenance Cost?

City-Wise Apartment Maintenance Charges

City-wise Co-operative Housing Society or Apartment Maintenance Charges differ based on location, amenities, and local regulations. Metro cities generally have higher charges due to increased service costs. Knowing these variations helps members plan their monthly housing expenses wisely.

Read also: Supreme Court Judgement on Apartment Maintenance Charges

Apartment Maintenance Charges Management Made Easy with NoBrokerHood

Keeping up with apartment maintenance charges, rules and regulations is only half the challenge. Actually collecting, tracking, and reconciling these charges every month is where most societies and management committees struggle. Manual registers, delayed payments, and unclear GST calculations often lead to disputes between residents and the MC. NoBrokerHood simplifies this entire process with a dedicated society accounting software built specifically for RERA-compliant, transparent maintenance management.

• Automated Bill Generation: Instantly generate maintenance bills using the equal-sharing, per-square-foot, or hybrid model no manual Excel calculations required.
• GST-Compliant Invoicing: Automatically applies 18% GST when charges cross ₹7,500 per month, so residents and MC members stay compliant without extra effort.
• Online Payment Collection: Residents can pay maintenance charges via UPI, cards, or net banking, with auto-reminders reducing delayed or missed payments.
• Transparent Digital Records: Every transaction is recorded and accessible, giving MC members audit-ready financial statements and residents full visibility into fund usage.
• Faster RWA Handover Support: For newly formed societies, NoBrokerHood helps set up accounting systems quickly so builder-to-RWA fund transfers are properly documented from day one.
• Vendor & Expense Tracking: MC members can track vendor payments and society expenses alongside maintenance collections, all from a single dashboard.

All Solutions by NoBrokerHood: