Residential properties in gated communities offer a range of amenities, security, privacy, and convenience, making them a highly sought-after housing option. Many individuals looking to rent prefer these properties due to the value they provide. However, this value often comes with a caveat: maintenance charges.
What are maintenance charges?
These are the charges that have to be paid to the housing society to maintain the upkeep of the facilities in the society such as landscaping, security, cleaning, and repairs. These are charged monthly but can be paid monthly, quarterly or annually by the society member (owner).
While property owners typically bear these costs, they are frequently passed on to tenants as part of their rent.
But did you know that tenants might also face unexpected society charges in addition to standard maintenance fees? This issue is particularly prevalent in gated communities compared to regular apartments, where societies may impose arbitrary fees under various pretexts. This guide will explore the different ways housing societies in gated communities may charge tenants and how you can avoid these additional costs.
Gated communities vs regular apartments: Maintenance fee comparison
| Gated communities | Regular apartments |
| Amenities: Maintenance fees are generally higher due to enhanced amenities such as podiums, advanced security systems, and recreational facilities. Additional fees may apply for specific amenities like banquet halls, mini theatres, and barbeque areas. | Maintenance fees tend to be lower, reflecting fewer amenities. While there may be hidden utility fees, these are often minimal and can sometimes be contested effectively. |
| Security: With round-the-clock security and state-of-the-art systems such as CCTV surveillance and boom barriers at entry points, the cost of security is reflected in the maintenance fees. | Security: Security measures are typically basic, as owners may invest in security for personal properties without incurring significant costs. |
| Tenant regulations: Tenants may face stricter regulations and higher fees for using amenities, as societies expect them to be more responsible given the high value of the property. | Tenant regulations: There is often a more informal relationship with tenants, resulting in fewer charges and restrictions. |
Fees that tenants should know that they may be charged
- Added fee for use of facilities in the club house like swimming pool, gym, etc.
- Added fee for issue of parking sticker along with landlord’s allotment letter and car details.
- Added fee for maintenance of other society utilities such ad lift service, generators etc.
Common arbitrary charges imposed on tenants
Tenants may find themselves confronted with various unexpected charges imposed by housing societies, including:
- Differential maintenance charges: Some societies charge tenants up to 10% more than owners, a practice permitted if approved by the sub-registrar’s office (SRO).
- Convenience fees: Tenants may incur additional charges for document verification when moving into the community.
- Weekend move-in fees: Moving in on weekends may result in higher fees for tenants.
- Amenity usage fees: Tenants often face restrictions on amenity usage. For instance, Dheeraj (owner) and Rohan (tenant) stay in the same society. While Dheeraj is permitted to use the Badminton Court whenever he wishes to, Rohan can use it only during the non-peak hours. If he wants to use it at any other time, he would have to pay a fee for it.
- Event Participation Fees: Fees for participating in community events may only apply to tenants, not owners.
- Added security: Sometimes society may claim that added security has been added because of presence of large number of tenants. This may be billed to them. In such a case, get details and find out if it’s a necessity before taking any action.
Strategies for addressing arbitrary charges
As a tenant, you must adhere to the terms of the rent agreement signed with your landlord and registered with the SRO. Any charges beyond this can be contested, but this may involve significant time and financial resources. Therefore, it is often best to resolve disputes amicably.
Types of rental agreements
Before entering into a rental agreement, it is crucial to discuss potential extra charges with your landlord. There are two main types of rental agreements:
- Rental agreement: Governed by the Rent Act or State Rent Control Act, this agreement protects tenants from arbitrary eviction and restricts landlords from unilaterally raising rent.
- Leave and license agreement: This agreement does not fall under rent control laws, allowing landlords to request vacating the property with just a month’s notice and set any rental price they wish.
Tips for handling society charges
Mentioned are owner specific and society specific solutions that you can take help of.
Owner specific solutions
- Document any charges: After moving in, keep track of any charges the society addresses to you that should rightly be billed to the owner. There are some societies which charge donations for community activities and make contribution compulsory. Note that this is illegal and this contribution is purely voluntary.
- Owner responsibilities: If the owner undertakes repairs, they must pay any associated fees, not the tenant. If billed, the tenant should refuse to accept it.
- Discuss disparities: Communicate with your landlord about any perceived biases between owners and tenants and request intervention.
Society specific solutions
- Request clear breakdowns: If faced with arbitrary fees, demand a detailed breakdown and receipt from the society.
- Know your rights: Most housing societies are registered with the National Cooperative Housing Federation of India (NCHFI) and must adhere to specified bye-laws. Tenants can request clarification on the bye-law governing any charges imposed.
Note that even though you may opt for society specific solutions separately, it’s always a good idea to keep the owner in loop.
Legal recourse that tenants can take for unfair arbitrary society charges
If you believe you are being unfairly charged, you have legal avenues to pursue:
- Approach the grievance redressal system set under the Model Tenancy Act that has been adopted by only four states- Tamil Nadu, Assam, Uttar Pradesh and Andhra Pradesh currently. The grievance redressal system is a combination of Rent Authority, Rent Court and Rent Tribunal.
- In the absence of Model Tenancy Act in your state, you can approach the Rent Court or Rent Tribunal and cite similar cases that were fought and respite was provided through the above mentioned grievance redressal system.
- If dissatisfied with a judgement, you can appeal within 30 days of receiving the judgement. You should get to hear from the court on the judgement within 60 days from the date the order was issued. Even after thus, if you are of the opinion that the judgement is unfair, you may escalate the matter to a civil court.
Housing.com POV
Tenants must be aware of all potential charges before signing a rental agreement. While some contributions, like donations or community activities, may be voluntary, mandatory charges must be specified in the registered agreement. If faced with arbitrary fees, promptly raise the issue with your landlord to seek a resolution.
