The maintenance charge of an apartment is an expense that needs to be considered by every home buyer prior to buying an apartment in Hyderabad. The charges relate to the maintenance of common areas, amenities, and services that help maintain the residential complex in a safe and clean condition. The maintenance charge differs based on certain factors like the location of the apartment, the size of the apartment, the age of the building, amenities offered by the apartment complex, among others. For instance, a premium gated community having a clubhouse, swimming pool, garden, and state-of-the-art security system will have high maintenance charges compared to an independent apartment with basic amenities.
Understanding Apartment Society Expenses
Apartment maintenance fees are collected to run and maintain common amenities for all apartment tenants. In contrast to individual bills for utilities, the maintenance fee is a means to manage the cost of common facilities and amenities in an apartment. The money is usually managed by the apartment owner’s association or the resident welfare association or a facility management company.
Services Usually Covered in Monthly Charges
The services differ from one community to another, but maintenance fees normally cater to the cost of operating common facilities on a regular basis.
These often comprise:
- Security and surveillance
- Housekeeping of common areas
- Operation and maintenance of lifts
- Electricity for common areas
- Water and pump maintenance
- Gardening and landscaping
- Minor repair works and regular maintenance
High-end gated communities could even have clubhouse maintenance, pool maintenance, kids’ play area maintenance, gymnasium maintenance, etc. in their monthly maintenance fees.
How Residential Communities Calculate Monthly Fees
However, there is no fixed formula that can be used to calculate the cost of maintenance of an apartment in Hyderabad. Residential colonies use various formulas for calculating maintenance charges depending on the size of the colony, its facilities, operational costs, and by-laws of the colony.
Area-Based Calculation Method
This is the most commonly followed approach in gated communities and apartment societies. The maintenance fees will be worked out depending upon the super built-up area of each apartment and hence larger apartments have to pay higher maintenance fees than smaller ones.
This approach follows the following features:
- The fees are worked out on a per sq. ft. basis.
- The larger apartments make a greater contribution towards the common expenses.
- It is a simple process.
For instance, in case the society collects ₹4 per sq. ft., the 1,500 sq. ft. apartment will pay ₹6,000, whereas the 1,200 sq. ft. apartment will pay ₹4,800.
Fixed Contribution Model
Under this arrangement, each flat is charged an equal maintenance fee irrespective of their sizes.
This method has the following advantages:
- Each member will contribute equally
- Simplicity in accounting
- Easier budgeting by the society
However, people having small flats may feel that they pay more than people with bigger apartments who use the same facilities.
Expense-Based Collection System
While some apartment communities base their maintenance charges according to their real expenses every month rather than having a set rate. Charges from residents are determined by the expenses incurred in that particular month.
The expenses are likely to comprise:
- Security and housekeeping
- Common electricity
- Water supply and pumping charges
- Lift maintenance
- Gardening and landscaping
- Maintenance activities
As the charge is based on actual expense, there will be variations in monthly maintenance charges depending on the maintenance activities done.
Average Maintenance Costs Across Hyderabad Apartments
The costs of maintaining apartment units in Hyderabad differ based on the residential communities. In other words, there is no fixed monthly cost since it varies depending on the size of the properties, facilities, operation needs, and management of the society.
According to industry experts, the Hyderabad residential market consists of standalone apartments, mid-segment projects, and luxury gated communities with varying maintenance needs. The more the facilities and infrastructure, the higher the monthly costs of maintenance compared to those with fewer facilities. Prior to making any comparisons of the maintenance charges,
it is important to consider the following:
- Maintenance charges per sq. ft.
- The services offered in the monthly charges
- The amenities offered in the society
- Additional costs incurred apart from the monthly cost
- The quality of maintenance in the community
In essence, rather than going for the property with the cheapest maintenance charges, try to determine if the monthly cost is fair enough.
Why Some Communities Have Higher Monthly Expenses
Maintenance costs for apartments are determined by the differences in the level of maintenance needed in each community areas. Naturally, projects which have premium facilities, bigger infrastructure, and professional managers have higher maintenance costs compared to other smaller apartment buildings.
Impact of Premium Amenities
Though amenities make life more pleasant for people living there, they do need maintenance services. Projects with many amenities tend to charge higher maintenance fees per month.
Examples of amenities that often lead to increased maintenance fees are:
- Club house
- Swimming pool
- Gymnasium
- Well-kept gardens
- Play areas for kids
- Indoor sports facilities
While comparing projects, you should verify whether the maintenance fees match the amenities provided and whether they will be of use for you and your family.
Operational and Staffing Requirements
A smooth working of the residential community relies upon skilled manpower along with proper management of facilities. Communities of larger size need more manpower for managing their day-to-day activities, and thus incur more maintenance costs.
Some important operating costs are:
- Security staff
- Housekeeping staff
- Facility management
- Gardening charges
- Elevator maintenance
- Common areas cleaning
Maintenance costs are high for communities offering 24 hours services as compared to basic operational facilities projects.
Community Size and Infrastructure
Size of the residential society is another determinant of maintenance cost. Residential projects which have many buildings and common areas will require more maintenance cost than small projects.
Some of the factors which determine high maintenance costs are:
- Several residential buildings
- Large common areas
- Parking in basements
- Internal roads and passages
- Lifts
- Landscaped open areas
When you compare maintenance cost in two projects, take into account the size of the project first. High cost might justify proper maintenance and common area management.
Additional Costs Residents Should Consider
The monthly maintenance costs are meant to take care of all the routine expenses but do not necessarily cover all the expenditures related to staying in an apartment. Residential societies levy additional charges for long-term maintenance, major repairs, and certain facilities. Potential buyers must be aware of these charges before they finalize their decision to buy.
The most common charges levied are:
1. Sinking Fund: This fund is collected for major repairs and/or replacements of common infrastructures.
2. Corpus Fund: One-time payment at the time of property purchase that goes towards building long-term funds of the society.
3. Parking Costs: Some societies levy additional charges for parking in addition to monthly maintenance costs.
4. Club House Membership: Certain societies have separate membership charges for their club house.
5. Major Repairs Contributions: Extra collections from owners when the society engages in any major repairs or renovations.
6. Government Regulations: According to the govt regulations Maintenance charges should be disclosed clearly in the agreement and collected as per applicable state housing and society regulations.
Prior to buying a flat, ask for a detailed list of monthly maintenance charges and other one-time contributions.
How to Identify Unreasonable Society Charges
Maintenance charges can be expected to go up because of inflation, increasing costs of utilities, or added services. Yet any increase should be explained clearly and be visible through the quality of the maintenance work.
These are some warning signs that you should be wary of before agreeing on increased maintenance charges:
- No clear breakup of your monthly expenses
- Frequent fee hikes without proper communication
- Separate charges for services included in the maintenance package
- Inadequate maintenance despite high monthly charges
- No transparency in society accounts/annual financials
In cases where there are two gated communities located in the same locality with the same facilities and apartment size, but one charges ₹3.50 per sq. ft. and the other charges ₹6 per sq. ft., the society should justify the price difference.
The increased rate is justified in situations when the facilities provided by the higher-priced society are more. On the other hand, when the difference in rates is huge, despite the fact that both societies provide similar facilities, then the buyers need to look at the society's maintenance cost statement before taking a decision.
Furthermore, an increase in the monthly maintenance fees from ₹4,000 to ₹5,500 without introducing any extra facilities should be explained to the buyers.
It will be helpful for buyers to compare the nearby societies and examine the expense statements of the societies to justify their maintenance charges.
Ways Residents Can Evaluate Their Monthly Expenses
The analysis of the maintenance fee cannot be done merely on the basis of the monthly charge. It is necessary to evaluate if the amenities and services offered are worth the amount paid for maintaining them in the long run.
It is essential to keep in mind the following while considering the purchase or moving into the apartment:
1. Comparing neighboring communities: Look at the maintenance charges of other apartments in the neighborhood. There should be some reason for any large disparity.
2. Listing out the services offered: Ask if there are services such as security, housekeeping, lift maintenance, landscaping, power backup, and common area maintenance.
3. Analyzing common areas: Well-kept, clean corridors, well-functioning lifts, and landscaped gardens are an indication that the maintenance fee is being utilized.
4. Determining frequency of changes in fee: It is common to increase the fee on an annual basis to match the rate of inflation. Frequent and significant hikes need a proper explanation.
5. Asking for maintenance fee statements: Most communities release yearly budget or statement of accounts of maintenance fee.
For instance, if one charges ₹4,500 and the other charges ₹5,000 on a monthly basis, then the latter may provide good value for money due to better security and maintenance of facilities along with uninterrupted power back up and maintenance of common areas. The quality of maintenance needs to be considered in order to make an educated judgment about the cost.
Things to Check Before Moving Into a Hyderabad Apartment
Looking at the maintenance charges before getting into the apartment ensures that buyers are aware of any surprises they could face after taking possession. Other than checking the monthly fee, it is important to know what the charges cover, how they are determined, and if there are extra payments involved.
Consider the following factors before making the final purchase:
1. Monthly maintenance charge: Make sure that you know the current maintenance charge and whether it is charged on a per sq. ft. basis or as a flat charge per month.
2. Included services: Confirm whether maintenance charges include security services, housekeeping, lift maintenance, gardening, water supply systems, and electricity for
common areas.
3. Extra charges: Inquire about any additional charges which may be one-time and which might be charged to new buyers such as corpus fund, sinking fund, club
membership fees, parking charges, and the like.
4. Revision of charges: Determine the frequency of maintenance charge revision and whether prior revisions were announced.
5. Society management: See if the apartment is run by Resident Welfare Association (RWA), Apartment Owners' Association (AOA), or any facility management company.
6. Maintenance bill/invoice: Try to get recent maintenance bills/annual expenditure report to understand how the money collected is spent.
7. Approvals of the project: Verify the approvals of the project by checking at Telangana RERA website prior to purchase.
Spend some minutes going through this list, and you will be able to calculate actual expenses from buying this apartment.
Conclusion
Maintenance charges in apartments are one of the main components that form the overall cost of the property in Hyderabad. As every residential community has its own unique way of calculating maintenance charges, it is essential to know what the monthly charge includes and any other fees that need to be paid prior to buying an apartment.
It is always good practice to consider maintenance charges while comparing them along with other aspects and benefits associated with a particular property. The best way to find out and compare all the details regarding various apartment projects in Hyderabad is through Homefleet. Through Homefleet, buyers can easily shortlist their preferred communities after considering all the important factors.
