How Is Society Maintenance Charge Calculated?

Society maintenance is calculated by adding up the society's approved yearly expenses and dividing the total among the flats, either by area, equally, or by a mix of both. The method should be written in your bylaws or passed by the general body. This guide shows the arithmetic with worked examples, what else goes on the bill, and how Aangan, the maintenance app built by Taheri Developers, applies the rule to every flat.

How society maintenance is calculated, step by step

The sum is the same in almost every society. Only the split changes.

1. List the expenses. Security, housekeeping, office staff, common-area electricity, lift and pump upkeep, gardening and pest control, plus contributions to the repair and sinking funds.
2. Fix the budget. The society totals the expected yearly cost, usually approved at the AGM, and divides it by twelve.
3. Choose the split. Per square foot, equal per flat, or a mix of the two.
4. Apply it to each flat. Print every head and its rate on the bill instead of one lump sum, so residents can see where the money goes.

Per square foot, equal share or a mix: worked examples

Take a society of 40 flats with a total area of 48,000 sq ft and monthly expenses of ₹1,20,000. These are the figures used in Aangan's guide to society maintenance charges. Here is what each method does with them.

• Per square foot. Divide ₹1,20,000 by 48,000 sq ft to get ₹2.50 per sq ft. A 1,200 sq ft flat pays ₹3,000, a 600 sq ft flat pays ₹1,500 and an 1,800 sq ft flat pays ₹4,500. It suits societies where flat sizes vary a lot.
• Equal share. Divide ₹1,20,000 by 40 flats. Every flat pays ₹3,000 whatever its size. It is the easiest to explain, but owners of small flats often question paying the same as owners of large ones.
• Mix. Split some heads equally and the rest by area. As our own illustration, take ₹48,000 for security and housekeeping, shared equally at ₹1,200 a flat, and ₹72,000 for everything else, shared at ₹1.50 per sq ft. The 1,200 sq ft flat pays ₹3,000, the 600 sq ft flat ₹2,100 and the 1,800 sq ft flat ₹3,900.

Which method is allowed is a legal question as well as a maths one. Housing.com's explainer on Maharashtra describes societies under the Co-operative Societies Act being billed equally per unit, while apartment-ownership buildings tie charges to area, with courts ruling on both. Other states differ. Check your registered bylaws and state rules before changing the method, and take legal advice if there is a dispute.

What else goes on a maintenance bill

A bill is more than the service charge. Common heads are the repair and maintenance fund, the sinking fund, water charges, parking, non-occupancy charges for rented flats where bylaws allow them, building insurance and one-off charges approved by the general body. The sinking fund pays for big future work such as structural repairs, and it is kept apart from day-to-day expenses. As one example, Aangan's sinking fund guide says Maharashtra's model co-operative housing bye-laws set a minimum of 0.25% of each flat's construction cost a year. On a construction cost of ₹20,00,000 that is ₹5,000 a year, or about ₹417 a month. Other states and associations set their own rates, so use your own bylaws, not this figure.

Tenants, late fees and fairness

The owner is the society's member, so the obligation to the society stays with the owner, although many societies bill the tenant directly under the rent agreement. Late interest or a flat late fee should come from the bylaws or a general body resolution, apply equally to every flat, and be printed on the bill. Limits on interest differ by state, so check your own rules before fixing a rate.

Mistakes that cause arguments over the bill

Most disputes about maintenance come from a few habits that are easy to avoid. Each one takes a minute to fix and saves the committee many awkward conversations later in the year.

• Mixing area definitions. Use the carpet or chargeable area your bylaws specify for every flat, taken from one source, so that no resident can say a neighbour was measured differently.
• Sending one lump sum. Show each head and its rate on the bill so residents can check the working themselves.
• Skipping receipts for cash. Issue a numbered receipt for every payment, including cash, so the ledger always matches what was collected.
• Keeping the books private. Share a monthly statement of income and expenses with the supporting bills, so the next rate revision does not come as a surprise.

How Aangan applies the rule to every flat

Aangan is billing and collection software built by Taheri Developers. Everything below is what its website states. To test your split first, use the free maintenance calculator.

• Bills on the 1st. Each flat's amount is worked out from its area and sent with a one-tap pay link. On the Society plan, Autopilot runs bills, late fees and reports.
• UPI, matched and receipted. Residents pay with GPay, PhonePe, Paytm or any bank app, and the money goes straight to the society account with no convenience fee on UPI. Payer name and amount suggest the flat for unlabelled payments, and once the bank confirms, a signed PDF receipt goes out on WhatsApp.
• Reminders and late fees. WhatsApp reminders go three days before the due date, on the due day, seven days after with the late fee, and thirty days after, when it goes to the committee. Fees follow the society's bylaws.
• Committee view. A flat grid by wing turns green when a flat pays, and tapping a flat shows the resident and dues. On the 5th each flat gets a monthly report of money in, money out and supporting bills. The ledger keeps dues and receipts, and there is an auditor export.
• Bills and people. Photographing a vendor bill fills in vendor, amount and date. Tenants can pay while owners see the receipts, and residents need no app. The Federation plan adds Tally export, GST invoices and several buildings under one login.

Setup is self-serve: sign up with an email, mobile number and society name, and you become admin and can invite the treasurer and staff. Flats can be added by hand or from Excel, and the software is hosted and maintained for you. Starter is free for up to 20 flats with 100 WhatsApp receipts a month. Society costs ₹6 per flat per month and Federation ₹9, so 48 flats on Society is ₹288 a month. The site's billing wording is inconsistent, so check current terms on the pricing page. A one-time licence, with flats set up and your Excel register moved, is available on quote. More detail is on the society billing software page, and our post on what features society maintenance software should have helps you compare tools.

Calculating maintenance is simple arithmetic once the budget and the split are agreed. The hard part is applying it fairly every month. Write the method into your bylaws, show every head on the bill, and let software do the repeating. Aangan does that for societies of any size, and Taheri Developers can build custom software if yours needs something different. Open the committee demo to see a bill worked out.