Society maintenance charges: what is fair, what is a red flag

Maintenance is the quiet killer of apartment-ownership economics. Buyers obsess over sqft rate and ignore the monthly bill that drains returns for the next 20 years.

Typical bands (per sqft / month)

Basic township (no pool, no clubhouse): ₹2 – 2.5. Mid-range with gym + pool: ₹3.5 – 5. Luxury (concierge + premium amenities): ₹7 – 10.

Sinking fund vs. maintenance

Maintenance covers day-to-day. Sinking fund (0.25% – 0.75% of unit value annually) covers major repairs — waterproofing, lift replacement. Societies that don't collect sinking fund will hit you with ad-hoc assessments.

RWA financials are public

Under the respective Societies Act (Karnataka Apartment Ownership Act, Maharashtra Co-op Societies Act, etc.), members have a right to inspect audited accounts. If the RWA resists, that's your red flag.

Safety checklist for everyone in this deal

A property transaction in India touches a lot of hands. Here's what each party should insist on before money moves.

Buyers

• Verify title through a 30-year EC (Encumbrance Certificate) and cross-check the mother deed.
• Confirm RERA registration (where applicable) — the RERA number should match the one on the state RERA website.
• Never transfer a token amount on WhatsApp alone; insist on a receipt and a simple written agreement.
• Walk the property in person. Photo-only deals are a common vector for listing fraud.

Sellers

• Keep originals in a locker. Only ever share certified copies with prospective buyers.
• Insist on payment via cheque / NEFT / RTGS — avoid cash-heavy deals, especially above ₹2 lakh (20,000 cash cap for each leg under Section 269ST).
• Never hand over vacant possession until the sale deed is registered and the registration receipt is in your hand.

Agents, agencies and brokers

• Register under the state RERA (where brokering RERA-covered projects) and display your registration number on listings.
• Keep a written, dated engagement letter with the client covering brokerage %, exclusivity and a cancellation clause.
• Do a KYC on both sides before the first site visit — PAN + Aadhaar, photo ID match — and hold a copy on file.
• Never pocket earnest money directly; let it flow buyer ↔ seller and invoice the brokerage separately.

Owners

• Update your property tax every year — BBMP / MCD / BMC arrears follow the property and surface at sale time.
• On rental, include a 2–3-month notice period, a detailed inventory with photos, and a clause on painting + deep-cleaning at exit.
• Pay the rental TDS if you're a tenant paying over ₹50,000/month (Section 194-IB). Owners should chase the Form 16C from their tenant.

Final tip: when in doubt, walk away. The best real-estate deals are the ones you don't rush.