Key takeaways
Monthly maintenance is a long-term cost; include it in your budget alongside the EMI.
Ask how charges are calculated, what they cover and how often they have increased.
Understand deposits such as the interest-free maintenance security (IFMS) and sinking fund.
A well-run residents' association with audited accounts is a good sign for a society.

Maintenance charges rarely get attention during a purchase, but you will pay them every month for as long as you own the home. They also affect your quality of life. A few questions before buying can prevent unpleasant surprises.

What maintenance charges cover

Typical items include:

Security staff and housekeeping.
Lift operation and annual maintenance contracts.
Power backup for common areas and, sometimes, apartments.
Water supply, pumps and treatment plants.
Common-area electricity.
Gardening and landscaping.
Clubhouse, gym and pool operation.
Minor repairs and administration.

How charges are calculated

Method	How it works
Per square foot	A rate multiplied by your area (often super area)
Flat rate	Same charge for each unit
Per unit type	Different flat rates for 2BHK, 3BHK, etc.
Actual cost shared	Total costs divided by agreed formula

Ask which area figure is used. Charges based on super area are higher than those based on carpet area. See carpet vs super built-up area.

Deposits and funds

IFMS (interest-free maintenance security): a one-time deposit collected by many developers.
Sinking fund or corpus: savings for major future repairs such as lift replacement or repainting.
Advance maintenance: some developers collect one or two years' maintenance upfront at possession.

Ask whether these funds are transferred to the residents' association after handover and how they are used.

Who manages the society

In new projects, the developer or its agency usually manages maintenance at first. Later, a residents' welfare association (RWA) or association of apartment owners takes over. Under RERA, the promoter must enable the formation of an association of allottees. Read builder handover to the residents' association.

Questions to ask before buying

What is the current monthly maintenance, and how is it calculated?
How much has it increased in the last three years?
Is there a sinking fund, and how much is in it?
Are any special levies planned, such as repainting or lift replacement?
Who manages the society, and are accounts audited and shared?
What is the arrears rate? High arrears can strain services.
Are there pending disputes with the developer?
What are the rules for renting out, pets, renovation and parking?

For tenants

Ask whether maintenance is included in rent. If not, add it to your monthly cost. Some societies charge a move-in fee.

Red flags

No audited accounts.
Large pending dues by the developer for unsold units.
Frequent failures of lifts or water supply.
Sudden large increases without explanation.

For the full cost picture, see the real cost of buying a home.

Frequently asked questions

Are maintenance charges based on carpet area or super area?

It depends on the society. Many use super area, which results in higher charges. Ask what area figure and rate are used.

What is IFMS in real estate?

Interest-free maintenance security is a one-time deposit collected by many developers, intended to be transferred to the residents' association after handover.

Can maintenance charges be increased?

Yes, usually by decision of the managing body as per the society's rules. Ask about past increases and the decision process.

Does the tenant or owner pay maintenance?

It depends on the rent agreement. Record clearly who pays maintenance, utilities and any society charges.

Related HomeAcross guides

Official sources and further reading

This guide is general information, not legal, tax or financial advice. Rules, rates and procedures change; confirm current requirements with the relevant authority or a qualified professional before you act. Read our editorial policy.

Maintenance Charges and RWAs: What to Ask Before You Buy

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