Managing a housing society involves several financial responsibilities, and one of the most important among them is the calculation of monthly maintenance charges. These charges ensure the smooth functioning of society services — from repairs and cleanliness to security and utilities.

In this blog, we’ll break down how housing societies in Maharashtra can calculate maintenance charges as per the New Model Bye-Laws No. 67.

What Are Maintenance Charges in a Housing Society?

Maintenance charges are monthly contributions collected from members of a co-operative housing society to cover common expenses. These include repairs, water supply, security, electricity for common areas, and long-term funds like the sinking fund and repair fund.

Types of Maintenance Charges (As per Bye-Laws)

The bye-laws divide the charges into four main categories:

1. Area-Wise Contribution

These charges depend on the carpet area of each flat and include components such as Sinking Fund, Repair Fund, Property Tax, Building Insurance, Lease Rent, and N.A. Tax.

Example calculation for a flat area of 580 sq.ft. and construction cost ₹600/sq.ft.:

• Sinking Fund: 580 × 600 × 0.25% ÷ 12 = ₹72.50/month
• Repair Fund: 580 × 600 × 0.75% ÷ 12 = ₹217.50/month.

2. Equal Contribution

These are common expenses shared equally by all members, regardless of flat size. Includes water charges, electricity for common areas, lift maintenance, and service charges.

3. Additional Charges

Additional charges like Parking Charges and Non-Occupancy Charges are applicable based on member usage and occupancy status.

4. Penalty Charges

Late payment fines or interest on arrears are levied as per Bye-Law 72 for delay in payment of maintenance dues.

Formula for Calculating Monthly Maintenance Charges

Here’s a sample breakdown for understanding maintenance cost distribution:

• Sinking Fund: 580 × 600 × 0.25% ÷ 12 = ₹72.50
• Repair Fund: 580 × 600 × 0.75% ÷ 12 = ₹217.50
• Property Tax: (Total Property Tax ÷ Total Sq.Ft.) × Flat Sq.Ft. ÷ 12 = ₹135.00
• Water Charges: Fixed ₹160 per flat
• Service Charges & Lift Maintenance: As per total annual cost ÷ No. of flats ÷ 12

Total Maintenance per Month = Sum of all components (approximately ₹600 – ₹800 per flat).

Tips for Society Committees

• Maintain transparency by sharing a breakup of maintenance charges with all members.
• Review annual expenses regularly to ensure fair distribution.
• Use a society management app like SocietyRun to automate calculations, generate bills, and manage online payments effortlessly.
• Encourage members to pay online to avoid delays and manual errors.

Conclusion

Accurate calculation of maintenance charges helps in better financial management, timely repairs, and smooth operations of a housing society. By following the Maharashtra Co-operative Housing Society Bye-Laws, societies can ensure fairness and transparency for all members.

If your society wants to automate maintenance billing, accounting, and reports, explore the SocietyRun App — your complete housing society management solution.