Best Apartment Maintenance App

Best Apartment Maintenance App

One of the biggest advantages of being a resident in a gated community  is the privilege of enjoying various facilities that the community has to offer - Swimming pools, playgrounds, gardens, Sport Centres, Gym, Clubhouse/recreational centers, etc. Continuous use of these facilities means that they have to be maintained regularly. 

This is the reason why apartment owners have to pay Maintenance costs. It is a calculated sum which residents must pay monthly to either the Resident Welfare Association (RWA) or Society Management for the upkeep of the mentioned common areas. Here is the best software for maintenance of your society, apartment maintenance app or software.

Why do you have to pay the maintenance fees?

A valid question. You may think that it is an obligation of the builder or developer to maintain and repair the infrastructure. However, according to Section 6 of the the Real Estate (Regulation and Development) Act in 2016 "Every person who is allotted to have signed an agreement for sale, to acquire an apartment or plot of land, depending on the circumstances in accordance with Section 13 shall make required to make payments in the time period stipulated in the agreement for sale , and will be liable to pay, at the date and location as well as the proportion of the registration and municipal taxes, electric and water charges for maintenance and ground rent, as well as other charges that may be due, if applicable." Therefore you are legally bound to pay for maintenance charges of the apartment when you own an apartment.

What's the various elements covered by Apartment Maintenance fees?

1. Participation towards Repair and Maintenance Fund:At the rate fixed by the general body from time to time, subject to a maximum amount of 0.75 percent per year on the construction cost of each flat to cover the costs of regular maintenance.

• Services Charges (Housekeeping Security, Security and Common Area Electricity and other equipment):Service Charges are paid by all members and are divided equally by the amount of flats.

• Charges for repairs and maintenance of the Lift and charges for operating the lift:Divided equally by all members, regardless of whether they utilize the lift or not.

• Sinking Fund: Apartment maintenance charges for this are determined through the General Body, subject to minimum 0.25 percent per annum of the cost of construction of each flat.

• Non-Occupancy Costs:These charges are required to be paid out by apartments that are rented, or not owned by the owner of the apartment. The amount should not exceed 10 percent of the charges for service.

• Parking Costs:Depends on the total size and number of the inlets available for each apartment.

• Property Taxes:Not applicable outside Maharashtra since this tax is paid directly to the municipal authorities.

• Water Costs:Depending upon actual consumption of each flat, or the amount of water intakes.

• Insurance ChargesThese are the charges that are to residents for insurance on equipment and buildings. It is possible to pass on any insurance premium incurred to commercial shops or flats but to the flats/shops themselves.

• Interest on Charges that are Defaulted:At an amount decided by the body general that calculates late payment of apartment maintenance charges using simple interest that is not more than 21% per year.

• lease rent:This rent is calculated based upon square feet of the area that is built up.

• Additional ChargesOther expenses could be non-agricultural tax, contributions to an election funds or other charges deemed necessary by the association at any time in accordance with their specific specifications.

Which are the different Methods for Calculating Maintenance in Apartments?

After the society has decided the amount it will take from its members as maintenance The next step is to decide which method of maintenance collection is suitable for the society's overall. The three most commonly used methods of calculating maintenance are below:

1. per Square Foot Fee

In this way, Apartment maintenance costs are calculated based on the total square. Ft. space of an apartment. It is usually used in neighborhoods where the dimensions of flats differ. For instance, if the maintenance per square foot fee for an apartment is Rs. 2.0 per square foot per month, and your home has a size of 1000 sq. Ft. in size, the maintenance cost is the equivalent of Rs. 2000 per month. One disadvantage of this system is that those who own bigger villas and flats are required to pay an additional amount for the upkeep of common areas that are used by residents equally.

2. Equal Maintenance Fee

Most often, this approach is employed within apartments, where the size of all flats are the same. The maintenance fee that is due to be paid each month will be divided according to the size units or flats. This might seem like the ideal scenario, but it may be unjust in apartment complexes, where the size of flats can vary.

3. Hybrid Method

The method described above is actually a blend of the two methods mentioned above. The Apartment maintenance fees are shared equally across the owners. The grouping of bills in different categories are (a) the square foot fees and (b) equal charges. This is regarded as fair, however it's a little more complicated in comparison to the two other options. Find out what constitutes square feet charges and the equivalent fees within this article.

Timeline for Paying Maintenance Charges

The timeframe for collecting and paying for maintenance can vary between quarterly, monthly semi-annual, annual and. If the association chooses to use a system for maintenance cost calculation, it will have to establish the timing based according to three primary elements:

• Regularity of Major Society Expense Bills.

• Are members willing to make the payment in advance or in bulk.

• How easy is it for the organization to adopt and implement these methods with less effort or management.

GST Implications for the cost of apartment maintenance

On the 22nd of July 2019 The Finance Ministry issued a circular regarding the GST due by RWAs. To be eligible for GST to be imposed on the housing associations, they have to meet two requirements:

1. If the monthly amount paid by homeowners of flats is greater than the amount of Rs. 7,500, they must pay GST at 18%..

2. If the total of the fees imposed by the society is greater than Rs. 20 lakhs during a fiscal period, GST applies.

If any of these requirements is not fulfilled Housing societies are not legally required to contribute GST. If you'd like to learn more about tax credits for input and reverse charge mechanisms, click here.

Best Methods to Charge Apartment Maintenance

• The larger is the scale of the gated Community and the greater the number of owners who have to pay the maintenance fees to the Association from time to time. This is often one of the biggest challenges Management Committees face. There are many variables which affect the final report that it's normal for errors and miscalculations to occur. This is the reason why many societies are shifting to the software used by society accountants. The automatic calculations of these softwares virtually eliminates the need for error and provides precise calculations with no effort or trouble. Learn further about the benefits of accounting software here.

• Residents are entitled to demand a full detail of the maintenance cost as well as a valid receipt for deposits or rent as well as maintenance fees.

• Do you have time today to make it to the office of the association to manually pay for your Apartment maintenance fees? You can cut out a lot of time and energy by simply implementing a society accounting program such as ADDA which sends you reminders in a timely manner about maintenance dues, sends instant receipts , and keeps record of all maintenance fees you've paid up to the date.

This is all you need to know about the cost of maintenance for apartments that you should be aware of! What system for collecting maintenance is your community using?

We invite you to contact us for more details about the maintenance of your apartment costs and how a software or app like society maintenance app could automate the operation for you.