Business Description
Most of us live in Apartment or Housing complexes that are governed by Co-Operative Housing Societies or Resident Association Bodies. As Property Managers, we are contracted to increase the efficiency of the day-to-day operations at the buildings that we manage. One of our most important tasks is to control expenses incurred to operate the building. These expenses form components of a Maintenance Bill, which every apartment or home owner pays. We often question maintenance charges and are curious to know what our maintenance bill comprises of.
Below is a list of Charges that Every Home Owner has to Contribute Towards:
Property Tax –
Is an expense that every home owner must pay to the Governing Municipal Body. Property Tax varies based on the Capital Value of the property owned
Electricity Charges –
Include charges related to Electricity Consumption in Common Areas of your building – Elevators, Pumps, Lights, Fans, Air Conditioning Systems, etc.
Water Charges –
Comprises of charges from the Municipal Body or Corporation & Water Tanker Charges, in case the Municipal Water Supply did not suffice the needs of the Residents
Service Charges or Property Management Team Charges –
This is the cost of your Maintenance teams, staff that services you daily – Security, Housekeeping, Electricians, Plumbers Pool Attendants, Gym Attendants
Charges Towards Annual Maintenance Contracts (AMCs) –
These are charges towards Periodic Maintenance contracts for Elevators Servicing, DG Sets, Pumps, Tank & Drain Cleaning, Pest Control, Periodic Glass Façade Cleaning
Non-Occupancy Charges –
Are charged to home owners that enter into Rental or Leave & License agreements. Most buildings charge an additional 10% of the regular maintenance bill as a Charge to Non-Occupant Members of a Society or Association
Transfer Charges –
Are charged by most Associations & Societies in case a Member wishes to sell his/her apartment/home to third party individual or company. Transfer charges vary based on what has been agreed to by Individual Societies & Associations. However, they are bound by a Maximum Limit
Auditors & Consultant Fees –
Comprises of fees paid to Architects, Internal Auditors, Society Consultants
Contribution towards Funds (Sinking Fund, Repair Fund) –
Regular overhauls of all buildings are required on a periodic basis. This includes activities like painting, civil work, fixing of leakages, etc. The Sinking Fund & Repair Fund are created by a Society to ensure that these funds are collected in a timely manner. The monthly contribution to these funds is calculated as a percentage of the cost of the building
Parking Charges –
Applicable in some buildings for additionally allotted parking spaces
Club House Membership Charges –
Are charged by some Societies & Associations towards the usage of club houses, pools, gymnasiums
The Three Easiest Avenues to Explore to Save on your Maintenance Bill -
Electricity Bills -
Appoint a company to conduct an energy audit. Ensure that you ask for solutions that involve CAPEX & ones that do not involve CAPEX
Check the heating levels in the wires by conducting a thermography analysis
Install Timers & check the wiring/looping of your circuits. How many lights come on when you turn on one switch? Rewire circuits to optimize efficiency & reduce the amount of lights connected to a single switch.
Technology -
Use technology to replace manpower. Especially in Elevators, Parking Lots, Gates. Biometric, Perimeter Protection & RFID Card readers can be used to access control instead of employing more security guards
Recycle Water -
Install a Sewage Treatment Plant & Rain-Water Harvesting tanks if possible. Ensure that your water treatment plants are running at optimum efficiency.
SILA is a leading Facility Management companies in Mumbai, that delivers best in class real estate services, Project Management and employee engagement activities.
