In a new project, the builder usually collects advance maintenance for the first one or two years at possession, then hands over to the residents’ association. In an established society, the managing committee sets charges in the budget, commonly per sq ft of area or as a fixed amount per flat, with separate heads for water, sinking fund and repairs.
For rentals, the agreement should say who pays maintenance — commonly the tenant pays routine charges and the owner pays capital items like the sinking fund. Unpaid maintenance follows the flat: buyers check for dues before a resale.
GST can apply to maintenance contributions above thresholds set by the GST law; the society or association works out whether it must charge it.
Example
A 1,250 sq ft 2 BHK in a Gurugram high-rise has maintenance of ₹4.50 per sq ft per month, about ₹5,625 a month. At possession the developer collects two years in advance, ₹1,35,000, shown on the cost sheet. When the owner lets the flat at ₹42,000, the agreement makes the tenant responsible for monthly maintenance.
Figures are illustrative, not market rates.
Questions about Maintenance charges
Who pays maintenance — owner or tenant?
Whatever the rent agreement says. Commonly the tenant pays monthly maintenance and the owner pays one-time or capital items such as sinking fund, repairs to the structure or special levies. Write it in the agreement.
Why does the builder collect maintenance in advance?
Until the residents’ association takes over, the builder runs the common services. Advance maintenance funds that period; the balance should be handed over with accounts when the association is formed.
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