When you plan your first home budget, it is easy to count only the EMI. But every apartment also has a monthly maintenance charge. It pays for everything the residents share, and it stays with you for as long as you own the home, whether you live there or rent it out. This guide explains what the charge covers, how it is worked out, what the law says about who sets it, and how to fit it into a first-home budget without surprises.
What maintenance pays for
Think of maintenance as the running cost of the building, split between all the owners. A typical list looks like this:
- Security guards and housekeeping staff
- Lifts, water pumps, generators and their annual service contracts
- Electricity for corridors, lifts, outdoor lights and pumps
- Water tankers or treatment, if the community needs them
- Running the sewage treatment plant (STP), which most larger projects must have
- Garden care, pest control and common-area cleaning
- Small repairs, insurance for common areas and the association's admin and audit costs
Your own flat's electricity, cooking gas and internet are not part of it. Those are billed to you directly.
Two common ways it is charged
By area: a rate per square foot each month, so a bigger home pays more. Flat rate: the same amount for every home, whatever its size. Many communities use the area method because larger homes usually use more shared services. Some use a mix, such as a flat amount for security plus a per-square-foot rate for everything else.
When a rate per square foot is quoted, always ask: which area? Carpet area, as defined in section 2(k) of the Real Estate (Regulation and Development) Act, 2016 (RERA), is the usable floor inside your walls. Some quotes use a larger "super built-up" figure that adds a share of corridors and lobbies. The same rate on a bigger area gives a bigger bill.
A worked example (illustrative numbers)
These numbers are made up to show the arithmetic. They are not Reeva's charges.
Suppose a community charges ₹4 per square foot per month, on an area of 1,100 square feet.
- Monthly maintenance: 1,100 × ₹4 = ₹4,400
- Yearly: ₹4,400 × 12 = ₹52,800
- If 12 months are collected in advance at handover, that is ₹52,800 due on top of your last instalment.
Now compare two areas at the same rate. A quote of ₹4 on 1,100 sq ft is ₹4,400 a month. The same ₹4 on 1,300 sq ft is ₹5,200 a month. That is ₹800 more every month, or ₹9,600 a year, just from which area figure is used. This is why you should ask the question before you compare projects.
Why some communities cost more than others
The total bill depends on what is shared and how many homes share it.
- More equipment, more cost: extra lifts, a pool, a gym or a large clubhouse all need staff, power and servicing.
- Fewer homes, fewer shares: a fixed cost such as a security team is split fewer ways in a small community.
- Simpler setups can balance that: a smaller, low-density community with fewer heavy amenities can keep its running costs modest. The per-home figure depends on the actual services, not on the size alone.
So do not judge a charge by its headline number. Ask for the breakdown and see what you are paying for.
Who decides the charge
There are two stages.
- Before the association takes over: section 11(4)(d) of RERA makes the promoter (the builder) responsible for providing and maintaining essential services, on reasonable charges, until the residents' association takes over. The builder or its facility team usually sets the charge in this period.
- After handover: the association runs the building and decides the charge, normally through its elected committee and general body. Section 11(4)(e) asks the promoter to enable the association to be formed within three months of a majority of homes being booked, or as local law requires.
Your own duty is in section 19(6) of RERA: pay your share of maintenance and other charges on time, as your agreement says. Late payment usually carries interest under the association's rules.
Does GST apply?
For a residents' welfare association, GST on maintenance depends on limits set under the GST exemption notifications. Under the current position, contributions up to ₹7,500 per member per month are exempt, and an association with yearly turnover below the registration threshold need not charge GST at all. If your contribution goes above ₹7,500 a month, GST at 18% applies to the whole amount, not just the excess.
Illustrative arithmetic: on a monthly charge of ₹8,000, GST at 18% is ₹1,440, making ₹9,440. On ₹7,500 it would be nil. These limits are set by notification and can change, so ask the association or a tax adviser for the current position. Water and electricity passed on at actual cost may be treated differently; ask how your bill is split.
Step by step: building maintenance into your budget
- Get the rate and the area basis in writing. Rate per square foot, and whether it is carpet or super built-up area.
- Work out the monthly figure. Rate × area. Add GST if the amount crosses the limit.
- Add it to your EMI. If your EMI is ₹41,656 (an illustrative ₹48 lakh loan at 8.5% over 20 years) and maintenance is ₹4,400, your fixed housing cost is ₹46,056 a month.
- Add the one-time handover amounts. Advance maintenance, corpus fund and any deposits. Keep this cash ready separately from your down payment.
- Allow for increases. Wages and power tariffs tend to rise. Leave room in your budget rather than planning to the last rupee.
Whatever loan figures you test, always add maintenance on top before you decide what you can afford.
Common mistakes first-home buyers make
- Comparing rates without the area basis. ₹3.50 on super built-up area can cost more than ₹4 on carpet area.
- Forgetting the advance. A year of maintenance collected at handover can be a five-figure sum you did not plan for.
- Assuming "no move-in, no maintenance". The charge usually starts from the date the home is offered for possession.
- Ignoring the sinking fund. If the community saves nothing for big repairs, owners face a large one-time demand later.
- Skipping association meetings. The charge is decided there. If you do not attend, others decide for you.
Checklist: questions to ask before you buy
- How is maintenance charged: by area, flat rate or a mix?
- Which area is used: carpet or super built-up?
- How many months must be paid in advance at handover?
- Is there a separate corpus fund or sinking fund, and how much?
- What services are included, and which are billed separately (water, generator power)?
- When will the residents' association be formed?
- Can I see a sample monthly expense statement for the building?
If you buy a resale flat
Ask the association for a no-dues letter before you register. Unpaid maintenance from the previous owner can become a dispute you inherit. Also ask for the last year's accounts and whether any big repair, such as lift replacement or waterproofing, has been approved but not yet billed.
The simple rule
A home is only comfortable if the full monthly cost is comfortable. EMI plus maintenance plus your own bills is the real number to test against your take-home pay.
New to all this? Our first home guide walks you through every step, from saving to registration.
