Buying an apartment is one of the biggest investments most Indians make, yet many buyers overlook one cost that stays with them for decades: society maintenance charges. These charges determine the long-term livability, affordability, and comfort of your home. While your EMI may remain fixed for years, maintenance costs can fluctuate, increase unexpectedly, or become a point of dispute if not properly negotiated from the outset..

Maintenance charges cover the upkeep of your building, amenities, and shared spaces. But in India, the way maintenance is calculated, billed, and managed varies widely from builder to builder and from one RWA (Resident Welfare Association) to another. Some societies levy a reasonable amount based on actual expenditure, while others inflate the numbers, bundle non-essential heads, or hide charges under ambiguous terms.

This is why understanding how to negotiate maintenance charges before and after possession is critical. Whether you are buying in a new project or shifting into a ready home, this guide will help you understand society maintenance charges in India, calculate fair values, understand RERA protections, and negotiate confidently with builders and RWAs.

Key Takeaways

1. Builders are legally required under RERA to disclose maintenance charges, inclusions, escalation formulas, and timelines before possession, and buyers must review these disclosures thoroughly before signing the agreement.
2. A fair maintenance fee is always linked to the actual cost of operating a society. You can calculate a reasonable charge based on area, density, and amenities rather than accepting arbitrary figures.
3. The builder must transfer the maintenance corpus and all maintenance responsibilities to the RWA once it is formed. Charges cannot continue without proper documentation and handover.
4. RWAs must follow transparent budgeting, audits, and resident approvals before revising maintenance charges. Sudden increases without consultation are not legally valid.
5. GST is applicable if the monthly maintenance crosses ₹7,500 per flat and if the RWA meets certain turnover thresholds. Understanding GST rules helps prevent overbilling or incorrect taxation.

Understanding Society Maintenance Charges

Society maintenance charges are monthly or quarterly payments collected from all residents to ensure the smooth functioning of shared facilities. These charges are essential for running any apartment complex and usually cover:

• Cleaning of corridors, lobbies, and common areas

• Electricity for lifts, pumps, lighting, and security cabins

• Salaries for security, housekeeping, technical maintenance staff, and estate managers

• Minor repairs and replacements

• Upkeep for gardens, walking tracks, clubhouses, and pools

• Water supply arrangements, including borewell maintenance

• diesel for generators

• Fire safety systems and annual maintenance contracts

• Sewage treatment plant operations

• Waste segregation and disposal

Bigger communities with larger clubhouses, multiple lifts, landscaped gardens, and recreational facilities usually have higher maintenance. However, that does not mean buyers must accept whatever number is quoted. The charge must reflect real expense, not inflated projections or hidden builder margins.

Maintenance Charges in the Builder Phase

When residents take possession but the RWA is not yet formed, the project remains under the builder's maintenance. Builders typically charge:

• Advance maintenance for 12 to 24 months

• A one-time corpus fund

• Clubhouse maintenance charges

• Charges for facility management companies

The issues arise when:

• The builder quotes a higher rate than market standards

• There is no clarity on what the charges include

• Residents do not receive itemized bills

• Amenities under construction are still billed

• Corpus fund is not transferred properly

Most disputes with builders stem from lack of clarity. This is why legal disclosures under RERA become non-negotiable.

RERA Rules on Maintenance Charges

RERA protects homebuyers from arbitrary maintenance practices. Builders must:

• Declare estimated maintenance in their RERA filing

• Clarify which entity manages maintenance until RWA formation

• Share detailed annual expense projections

• Transfer maintenance corpus to the RWA at handover

• Stop collecting maintenance once the RWA is registered

If the builder continues to levy charges without handing over the documents, residents have the right to file a RERA complaint.

Step 1: Verify the Builder’s Legal Disclosures

Before you sign the sale agreement, ask the builder for:

• Maintenance rate per sq ft (e.g., ₹3 per sq ft per month)

• Expected increase per year

• Detailed inclusions and exclusions

• Timeline for maintenance handover to RWA

• Total corpus fund amount

• Whether the project uses an in-house or third-party facility management team

Buyers often ignore this list, but this is where most hidden costs are buried. For instance, some builders charge a lump sum of ₹60,000 per year without a breakup. Others charge even for amenities that are not yet operational.

BrickFi’s maintenance benchmarking data helps buyers compare this rate with similar properties in the same area. If most comps charge ₹3 per sq ft and your builder is demanding ₹6 per sq ft, you know it needs negotiation.

Step 2: Calculate Fair Maintenance Charges

Instead of accepting the builder’s number, calculate a logical rate using:

Annual maintenance cost divided by total built-up area

This formula brings transparency and logic.

Example: Total yearly expense = ₹36 lakh Total built-up area = 200,000 sq ft

Maintenance per sq ft = ₹36 lakh ÷ 200,000 = ₹18 per sq ft per year Monthly = around ₹1.50 per sq ft

Typical ranges in Indian cities:

• Budget apartments: ₹2 to ₹3 per sq ft per month

• Mid-range projects with clubhouse: ₹3 to ₹5 per sq ft

• Premium projects with heavy amenities: ₹5 to ₹10 per sq ft

BrickFi also shows property density (units per acre), which helps you assess fairness. A project with high density and basic amenities should naturally have lower charges.

Step 3: Negotiate the Maintenance Corpus

A maintenance corpus is a reserve fund used for long-term capital repairs. Builders often collect a corpus equivalent to 12 to 24 months of maintenance.

Before paying, ask:

• How was the corpus calculated

• Where will it be stored before transfer

• Whether the interest will be passed to the RWA

• What document proves the corpus amount

• Whether the corpus is meant only for future repairs

Many buyers unknowingly pay corpus funds without knowing how or when it will be transferred. Under RERA, corpus transfer is mandatory and must happen within 60 days of RWA registration.

Step 4: Transition to RWA and Fresh Assessment of Charges

Once residents form an RWA (under the Societies Registration Act or KAOA), all maintenance responsibility shifts from the builder to the residents.

A proper handover involves:

• Reviewing all expenses incurred in the builder phase

• Auditing the facility management contracts

• Verifying warranties for lifts, pumps, fire systems, and STP

• Collecting all building-related documents

• Taking control of the maintenance corpus bank account

• Renegotiating vendor contracts for better rates

The RWA can then reassess the maintenance rate and adjust it based on actual expenditure rather than builder estimates.

Step 5: How to Negotiate with Builders and RWAs

Negotiation Tips with Builders

• Ask for item-wise breakup of costs such as lift AMC, diesel consumption, staffing, and electricity

• Exclude amenities that are still under construction

• Request a shift from lump-sum billing to per sq ft billing

• Negotiate better pricing for third-party facility management

• Demand clarity on GST applicability • Ask whether maintenance includes a clubhouse subscription or if it is separate

Negotiation Tips with RWAs

• Recommend competitive bidding among vendors

• Suggest usage-based billing for costly amenities

• Propose solar or energy-efficient systems to cut electricity expenses

• Ask for quarterly or half-yearly audit reports

• Push for digital maintenance tracking to avoid leakage

RWAs are generally more open to negotiation than builders because decisions affect all residents equally.

Step 6: Understand GST on Maintenance Charges

GST is one of the most misunderstood aspects of maintenance billing.

The rules are:

• If monthly maintenance is below ₹7,500 per unit, no GST applies

• If monthly maintenance exceeds ₹7,500, the entire amount is taxed at 18 percent • RWAs with annual turnover below ₹20 lakh do not need GST registration

• Builders, being registered entities, must add GST during pre-handover maintenance

Always ask for proper GST invoices to ensure compliance and prevent future disputes.

Step 7: Handling Disputes with Builders and RWAs

If negotiations do not work:

1. File a written complaint to the builder or RWA
2. Escalate to the state’s RERA authority if the issue involves non-disclosure or illegal charges
3. Approach the District Registrar of Societies for RWA-related concerns
4. Use Consumer Court if you face unfair billing or service deficiency
5. Coordinate with other residents for stronger collective representation

Most maintenance disputes get resolved quickly when handled collectively.

Conclusion

Maintenance charges are a vital part of homeownership and significantly impact your long-term expenses. When you understand how they are calculated, what RERA mandates, and what negotiation points exist, you gain the ability to challenge inflated fees and ensure fairness.

The smartest buyers in India are not those who buy the lowest-priced flat, but those who understand the lifetime cost of owning that flat. Negotiating maintenance charges is just as important as negotiating the property price.

BrickFi enables you to compare maintenance trends, understand builder track records, and view micro-market expense benchmarks so you can make informed decisions before signing any agreement.

FAQs

Q1. What is the average maintenance charge per sq ft in India?

Most societies charge between ₹2 to ₹7 per sq ft depending on amenities and density. Premium complexes may go up to ₹10 per sq ft.

Q2. Can a builder charge maintenance after the RWA is formed?

No. Once the RWA is officially registered, responsibility and collection of maintenance shifts to the residents.

Q3. How is maintenance calculated in most societies?

Maintenance is commonly calculated based on carpet area or super built-up area. Some smaller societies divide total expenses equally.

Q4. Does RERA regulate maintenance charges?

Yes. Builders must disclose maintenance rates, corpus amounts, and transfer obligations. Non-compliance is punishable under RERA.

Q5. When does GST apply to maintenance charges?

GST applies when monthly maintenance exceeds ₹7,500 per flat and when the RWA is registered under GST with turnover above ₹20 lakh.