Know all about sinking fund
Paromita Datta
September 21, 2023

Sinking Fund: What it is & how it is calculated

Ever wondered what that sinking fund entry is on your housing society maintenance invoice? Generally speaking, a sinking fund is an account where you set aside money to pay off a debt or for a planned expense. In the context of a gated community, a sinking fund has a similar purpose. There are specific rules for its calculation and usage.

What is a sinking fund in a housing society?

A sinking fund for a gated community has a similar purpose as in the case of personal finances. The main intention is to ensure that there are enough funds for necessary structural repairs or to plan for a contingency. A sinking fund ensures that the community is not overwhelmed by debt or an urgent expense. 

Many of the facilities and infrastructure in gated communities are depreciating assets. A sinking fund ensures that necessary repairs can be undertaken without worrying about the cost. It offers financial protection for any urgent expense. 

What is a sinking fund utilised for?

A sinking fund is meant for major undertakings like structural repairs. Unlike regular maintenance, these include heavy repairs or reconstruction. However, any resolution to deploy the fund must be passed by the general body of the society. In addition, it must be as per the guidance and opinion of the society architect. 

How is the sinking fund calculated in a housing society?

As per the Bye Law No. 13 (C), “The General Body can decide the Sinking Fund contribution, subject to the minimum of 0.25% per annum of the construction cost of each flat incurred during the construction of the building of the Society and certified by the Architect, excluding the proportionate cost of the land”.

In practice, these provisions can be less than straightforward. The construction cost can be different for each flat, depending on its size and even the date of construction. The cost may be difficult to estimate where the builder has marked up the costs. Hence, housing societies often have to explore alternative means to calculate sinking funds. 

One of the common alternatives is to take the reconstruction cost as the base for all calculations. This ensures that the calculations are based on current rates and there are no discrepancies. However, this rate must be decided in consultation with the society architect.

Know more

ApnaComplex offers a data repository where you can find all critical information. You can check your maintenance invoice for sinking fund charges. 
Want to know more about maintenance charges? Read our article to Know all about Society Maintenance Charges. Find out how ApnaComplex facilitates society maintenance here. Worried about escalating maintenance charges. Discover the secret to reducing your society’s maintenance fee!

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Switching to sustainable energy solutions
Paromita Datta
September 8, 2023

How gated communities can transition to sustainable energy systems

Energy consumption in the residential sector accounts for very high usage, second only to the industrial sector. Consequently, bringing down this high energy consumption is often one of the biggest priorities for gated communities. However, short of switching off the power supply, bringing down usage can be nearly impossible. The solution, therefore, lies in switching to sustainable energy solutions. 

What is sustainable energy? 

Sustainable energy refers to those power sources that can be replenished within a human lifetime and cause no carbon emissions. Thus, it does not harm the atmosphere or contribute to global warming. The four main types of sustainable energy sources are solar power, wind power, bioenergy, and hydroelectric power. 

For gated communities, solar panels have emerged as one of the most effective sustainable energy solutions. You can read more about its benefits in our article Solar Energy: A Sustainable Solution for Housing Societies.

How to transition to sustainable energy system 

Switching to sustainable energy systems can require modifications in both infrastructure and resident consumption habits. This can cause disruptions and resistance from residents affected by the change. Hence, it is critical to follow a phased and planned transition to sustainable energy systems: 

Conduct an energy audit

Start by understanding the current energy consumption patterns within the community. Identify which areas consume the most energy, such as lighting, heating, cooling, and common facilities. ApnaComplex Metered Utility Billing helps keep track of all metered utilities including electricity. 

Set clear sustainability goals

Setting goals is important to check progress. It sets the purpose and forms a driving factor for all sustainability initiatives. Achieving these targets can also be a powerful motivator in continuing with sustainability initiatives. Establish clear goals and objectives for transitioning to sustainable energy. Define targets for reducing carbon emissions, energy consumption, and cost savings.

Community Engagement

Gathering member consensus is critical since transitioning to sustainable solutions can involve sizeable investments. Everyone must be on the same page when it comes to adopting sustainable consumption habits and investment in infrastructure modifications. 

Conduct meetings or surveys to educate them about the benefits of sustainable energy and gather their input and support. You can also invite sustainability experts for workshops and help answer resident questions. Sustainability goals should be seen as a common community objective rather than an arbitrary decision by Management Communities or Resident Welfare Associations. 

Assess renewable energy sources

Evaluate the renewable energy resources available in the community’s vicinity. This could include solar, wind, geothermal, or even micro-hydro power, depending on the location and resources. Small-scale wind turbines may work if the community is in a windy area. In most cases, rooftop solar panels are the most applicable solution. 

Invest in smart energy-efficient appliances

Sustainable technology is our biggest friend when it comes to retrofitting buildings.

  • Upgrade common area lighting and appliances to energy-efficient LED lights and energy star-rated appliances. 
  • Implement motion sensors and timers to reduce unnecessary energy consumption.
  • Invest in energy storage systems like lithium-ion batteries to store excess energy generated by renewable sources for use during non-peak hours or emergencies.
  • Implement a smart grid system to optimize energy distribution, monitor usage, and reduce wastage. 

Energy-efficient landscaping

Use landscaping techniques to provide shade, reduce heat absorption, and improve insulation around buildings, reducing the need for air conditioning.

Installing EV charging stations

Install EV (electric vehicle) charging stations within the community to encourage residents to switch to electric vehicles. If your community is yet to make the switch, read our article Gated Communities Must Move Towards eMobility. Here’s How.

Financial incentives

Look for subsidies, tax breaks, incentives and rebates at the state, or central level to offset the initial costs of renewable energy installations. For instance, housing societies can apply for a 30% subsidy from the Ministry of New and Renewable Energy for rooftop solar panel installation. 

Maintenance and monitoring

Establish a routine maintenance schedule to ensure all equipment continues to operate effectively. Implement monitoring systems to detect and address issues promptly. This can include additional training for the maintenance staff. 

Educate and encourage residents

Conduct workshops and educational programs to teach residents about energy conservation and how to use the new sustainable energy systems effectively. Repeated messaging is important to ensure that residents stay aware. 

Long-term planning

Develop a long-term sustainability plan that includes periodic evaluations and updates to incorporate new technologies and practices as they become available.

Partnerships and community resources

Collaborate with local energy providers, environmental organisations, and sustainability experts to gain knowledge, resources, and support for the transition.

Transitioning to sustainable energy solutions in gated communities requires careful planning, investment, and collaboration. It can lead to reduced energy costs, lower carbon emissions, and a more environmentally responsible and resilient community. Learn about more such initiatives in our article 5 Sustainable Living Practices Every Gated Community should Adopt.

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Solar powering communities - challenges & solutions
Paromita Datta
September 4, 2023

Get the Solar Edge – Resolving challenges in transitioning to clean energy

Transitioning to a sustainable energy infrastructure is the biggest challenge facing gated communities today. Solar energy systems have emerged as one of the most viable and economical alternatives to conventional power sources. However, challenges still remain in adopting solar panels.

Transitioning to solar panels

There are many benefits in transitioning to solar-powered systems. Our article Solar Energy: A Sustainable Solution for Housing Societies explains these in detail. Housing societies use solar panels to power a range of appliances, from water heaters to ensuring power backup. 

However, the adoption is not without challenges. Read below some of the common roadblocks you may face along with some possible solutions.

Gathering consensus

Investing in a solar-powered infrastructure requires upgrades to existing systems. Depending on the scale, these enhancements can be extensive. Since this is a long-term investment, you cannot undertake it without the agreement of the committee members. Despite its benefits, management committees often face disagreements and reluctance from some quarters on issues like cost of installation.

Hence, gathering consensus is critical to get the project going. Provided all the members with detailed information on solar panels, their scope, benefits, and installation costs. 

Space & load-bearing issues

Rooftops with ample sunlight are preferred for installation. However, the roof must have the load-bearing capacity to bear the panels. It is critical that you start with an engineer assessing the roof’s capacity. An expert can also advise on optimising your roof space and strengthening its ability to withstand the panels’ weight.

Electrical Infrastructure

You cannot install the panels without a proper assessment of the society’s electrical infrastructure. Possible changes may include upgrades in the capacity of transformers, distribution lines, and meters. Since solar panels produce DC current, you will also need inverters to convert this to AC current used in homes. 

You must also decide between on-grid or off-grid connection. An on-grid connection has lower installation and maintenance costs. Off-grid systems are comparatively expensive but have the self-dependency that comes from using batteries for power storage. It’s important these details are properly considered before a decision is made. 

Financing 

The upfront costs of installing a solar energy system are considerable. The commercials can be the biggest roadblock, often overturning wide consensus. However, the cost must be viewed against the long-term savings on electricity bills and as a step towards self-sufficiency. Residential societies can also apply for a 30% subsidy by the Ministry of New and Renewable Energy for rooftop solar panel installation. In addition, societies can also claim reductions in income tax. 

Capacity building and training

The vendor carrying out the installation is also typically responsible for any major repairs or servicing. However, the society must be capable of daily management and maintenance of their solar energy systems. The society must appoint a designated team to effectively manage such requirements. The team should be trained by the vendor in carrying out on-spot maintenance activities. 

Looking for the right vendor

Fortunately for the consumers, the solar panel industry is a fiercely competitive market. So, it’s best to pick a vendor who can extend support from pre- to post-installation. This includes rooftop inspection, installation, financing support, and annual maintenance. Also, make sure the vendor has a BIS certification.  

ApnaComplex has been working with Management Committees and Resident Welfare Associations in connecting with leading solar panel vendors. If interested, you can reach out to us at support@apnacomeplex or call 80886 11229.

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holding housing society elections
Paromita Datta
August 29, 2023

Community Elections: What You should Know About

Democracy is vital to every group, including gated communities. This is why every cooperative housing community regularly holds elections to elect a Management Committee (MC) or Resident Welfare Association (RWA). As a form of grassroots democracy, housing society elections are important as the elected body is responsible for making critical decisions for the community. 

Cooperative societies operate within the framework of their model bye-laws. Apart from rules and regulations for their day-to-day activities, these laws also dictate the duration of an MC’s or RWA’s term and when the elections should take place. 

Holding the first managing committee election 

Housing society elections have to be held soon after a society’s registration. The Chief Promoter calls the society’s first General Body Meeting within the first three months. Holding polls is the key priority during the meeting. Thereafter, elections must be held once every five years. Failing that, a member has the right to demand an election. 

What happens if this demand is ignored? The member has the right to complain with the committee which must respond within 15 days. In the absence of any response by the committee, the member can approach the Deputy Registrar’s office. The Deputy Registrar then issues a show cause notice to the housing society after which a hearing is held.

The existing committee can be dissolved if it is found that it failed its duty to hold elections. Fresh polls should then be held within six months. In the interim, the Deputy Registrar can appoint an administrative officer to run the affairs of the society. Alternatively, the member can also approach a Cooperative Court or file a case in the civil court.

Voting rights of members

Every member or associate member is eligible to cast a vote in housing society elections. Typically, each unit of the housing society gets one vote. So, if you own more than one unit, you are eligible to cast a vote for each unit. 

Who can contest the elections?

To qualify, a candidate must be:

  • Above 18 years of age
  • A resident of the housing society
  • Have cleared all dues to the housing society within three months of nomination. 

How many committee members are needed in a society?

Each committee has at least three members – president, secretary, and treasurer. Additional members depend on the number of units in the community. In addition, every committee must have at least one woman. Since there is no ban on re-election, MC members often have a very long tenure. Read our articles to learn more about the importance of a management committee and their roles and responsibilities. You can also learn about the Code of Conduct for Management Committee Members of a Housing Society.

Process of holding housing society elections

As per the Cooperative Societies Act, the election process should ideally start about two months before the existing MC’s term ends. The existing MC issues a notice about the expiry while inviting other members to file nominations for the next election. 

The committee is responsible for compiling a list of members who are eligible to cast a vote. The list must be posted on the notice board at least 60 days before the polls. Ideally, the committee should also appoint a Returning Officer to oversee the elections. The Returning Officer is a neutral party and is widely considered as highly trustworthy.

Lastly, it should be kept in mind that many of these provisions are subject to state laws and community bye-laws. 

Leveraging ApnaComplex to hold housing society elections

Information is an important tool in any election. For free and fair elections, it is important that all members are aware of the society’s bye-laws and their rights. Another key requirement is the process of regularly informing all members about the election updates. 

ApnaComplex makes this easy through the following tools:

  • Community Wiki is a repository of important information, including society bye-laws. 
  • Create and publish relevant articles on polling rules on Community Wiki.
  • Sharing useful contact information about candidates and the Returning Officer. 
  • Share key dates and other information through the online Notice Board.
  • Create Surveys and Polls to understand issues of concern among residents. 
  • Create special groups to initiate discussions or coordinate an election task force 
  • Access past discussions on elections. 
  • Access any expenses incurred during past elections. 

If you want to learn more about ApnaComplex, get in touch with us at support@apnacomeplex or call 80886 11229. Our team will help you understand the various features you can use to communicate and connect with residents.

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Maximise rental income
Paromita Datta
August 25, 2023

Get the most out of your rental income

When rentals are soaring, do you find your rental income falling short? Even in a landlord market, the cost of being a homeowner is quite high. Rent ensures regular returns on a real estate investment. For those with home loans, it is also essential to reduce the burden of EMIs. 

Getting the most out of your rental income is, therefore, key to maximise your earning. To achieve this, you must boost your rentals while reducing expenses. With ApnaComplex Rentals you can ensure that costs are minimised while the income is maximised. 

How to get the most out of your rental income?

Here are some simple tips to maximize your rental income:

Determine the rental value of the property

The rental value of the property will depend on its market value and the prevailing rental rates in the area. The market value of the property can change due to a number of factors. This includes infrastructure developments in the area such as an upcoming flyover or opening of a metro station. Similarly, the value may also fall due to factors like a decline in circle rates. 

The prevailing rental rates are even more important. While you may want to maximise your income, make sure that it is not inordinately higher than the current rates. When pushing the rates to the higher end, make sure that the house is worth the higher amount. 

Renegotiate 

Continuing with the same tenant is always advisable. The extent of the rent hike will be dictated by the lease agreement. You can renegotiate the terms once the lease expires, especially if the rental rates in the micro market have also gone up. Keep in mind that your tenant may ask for certain concessions in return. These can include painting and deep cleaning or carrying out enhancements to the property. 

Be prepared with other concessions that you can extend when renegotiating. For instance, a tenant may ask you to lower your asking rate for a longer lease period. In this case, a lower rent may be acceptable for the assurance of renting out to a reliable tenant and avoiding the cost of any extensive renovations. 

Spruce up the property

People will pay a higher premium for a property that looks good. A simple deep clean and painting job can make a huge difference.

Consider upgrades

You can go beyond the general sprucing up by investing in some serious upgrades. For instance, invest in modular fittings in the kitchen or install well-done cupboards in the bedrooms. Furnished flats command a higher rent. You can also invest in home appliances like AC units or embedded devices like smart door locks. These upgrades should be viewed as long-term investments in raising the value of your property. 

Retrofit with energy-efficient solutions 

A home that helps a tenant cut energy consumption will command a higher rent. An independent house such as a villa or a row house is easier to retrofit with solutions like solar panels and insulated roofs. Even apartments can have simple modifications like window glazing or installing mesh doors and windows. You should also take advantage of other facilities in your gated community, such as getting a piped gas connection for the kitchen. 

Reduce vacancies 

Vacancies are one of the costs of being a landlord. Other than the loss of rental income, also consider the cost incurred in looking for a new tenant. This is why renegotiating with an existing tenant is preferred. You can also look for tenants who want a long-term lease. 

Screen tenants 

You may want to charge a high rent but is your prospective tenant capable of paying it every month? Screening a tenant is important to ensure that your tenant is not misrepresenting his/her income. 

Reduce your EMI cost

Far too often we think of our home loan as the non-workable part of our debt with terms that cannot be changed. However, as with everything, your home loan can also be renegotiated. You can explore refinancing with lower interest rates. However, you may have to meet certain eligibility criteria to qualify. 

You can explore other options, such as bargaining for lower interest rates based on your credit score, tenure extension, or part prepayment if possible. If you are just applying for a loan, you can also check out hybrid loans with a fixed rate for the initial few years followed by a prevailing floating rate of interest.

Take advantage of tax cuts

To get the most out of your rental income, you have to reduce your tax obligations. Check all your deductibles including the property tax and home loan interests. You can also claim up to 30% deductions for renovations and repairs. 

Use a different rental strategy

Looking for a reliable tenant can be very challenging as well as resource-consuming. Altering your rental strategy can do the trick if you find yourself hitting a wall in your own efforts. ApnaCompelx Rentals ensures that you can get the best deal. You can list your home and get personal assistance from an Estate Portfolio Manager. You can also benefit from the following:

  • Freedom from site visits saves your time and effort.
  • Negotiation support to help maximise your rent.
  • Assistance with a rental agreement to ensure that all the terms are hammered down.
  • Offers on services like cleaning and painting on the ApnaComplex app. 
  • Tenant KYC and background check to ensure reliability.

Here are some more smart tricks you can try to boost your rental income. If you want to know more about ApnaComplex one-stop rental management services, call us at 0120 71173344 or write to us at rentals@apnacomplex.com

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Trends in Community Management Solutions
Paromita Datta
August 22, 2023

The Nex-Gen Shift in Community Management Solutions

PropTech is a rapidly evolving industry that must balance between fast-changing tech and the legacy processes of real estate. Today, technology has revolutionised every aspect of the real estate sector, including the community management solutions industry. Solution providers like ApnaComplex are taking the lead in empowering communities, bringing next-gen solutions to enhance the residential experience in gated communities. 

ApnaComplex has continually pushed the envelope to incorporate new technologies. The result is more transparency in community functions, improvements in operational efficiency, and empowered residents. 

Trends in community management solutions

These trends will also impact Management Committees (MCs) and Resident Welfare Societies (RWAs) that work with ApnaComplex. The key factors that will impact the future of community management solutions include: 

Consolidation of services

As proptechs evolve, there is a clear movement towards integrated proptechs that offer end-to-end services. The consumer is now increasingly looking for apps that offer a bouquet of solutions. ApnaComplex has evolved from a community management platform to offer home services and rentals to ensure that all household and community needs can be accessed on the same platform.

Data and analytics with AI/ML

Leveraging AI and machine learning will be key in gathering data insights and ensuring data security. For example, home buyers are now able to find and analyse deals at a rate and speed previously unimaginable. On ApnaComplex Rentals, potential tenants can go through an exhaustive listing and make comparisons before proceeding. Find out how Leveraging Data can Improve Lives in Gated Communities. 

Embedded tech to improve decision making

As IoT becomes commonplace, we will see multilevel connectivity with community management solutions. The integration of data and devices will further facilitate informed decision-making, predictive maintenance, and energy efficiency.

More collaboration and connectivity 

Tech platforms like ApnaComplex have emerged as powerful collaboration tools. Unlike other popular social media platforms, there is no member limit in ApnaComplex. Hence, it is highly effective in bringing together large communities. 

Increasing compliance

PropTechs will see increased compliance-related issues, particularly in data security. Another key area will be ESG (Environmental, social, and governance) compliance as the importance of water scarcity and energy optimisation gains ground. Community management solutions like ApnaComplex will act as mobilistaion instruments by helping MCs and RWAs to connect with specialists in rainwater harvesting and rainwater harvesting. 

Boosting sustainability & green buildings

The demand for green buildings is driven by both government initiatives and growing awareness among end-users. New developments will increasingly see embedded sustainable tech while retrofitting older buildings will be the biggest challenge. 

Other than facilitating connectivity with ESG specialists, community management solutions can also help in tracking energy consumption. For instance, the Metered Utility Billing function in ApnaComplex helps in tracking the consumption of water, piped gas, and electricity. Also read 5 Sustainable Living Practices Every Gated Community should Adopt.

Hyperlocal services 

Historically, small businesses have always depended on the neighbouring populace. Community management solutions have further helped in improving their access. For instance, ApnaComplex offers hyperlocal businesses an opportunity to connect with consumers in gated communities through its household services. Thus, it has helped in the digital transition of hyperlocal businesses. 

If you want to learn more about our ApnaComplex’s new solutions, get in touch with us at support@apnacomeplex or call 80886 11229. Our team will help you understand the various features you can use to improve community management and security in your society!

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challenges in facility management
Paromita Datta
August 18, 2023

Resolving Challenges in Facility Management with ApnaComplex

Gated communities are known for their in-house amenities and facilities. These include a well-appointed clubhouse, sporting facilities, and banquet halls. From being perks, they are now increasingly seen as an essential part of residential complexes. Well-run facilities also increase the capital value of the property, raising both the rent and resale potential. 

However, facility management is more than just taking care of the occasional repair and maintenance. With many residents taking a keen interest in the running of these facilities, their management is a top priority for Management Committees (MCs), Resident Welfare Associations (RWAs), community managers and administrators. 

Challenges in facility management 

A community’s facility management tasks range from scheduling maintenance to tracking inventory. Some of the common challenges include:

Lack of comprehensive overview

Managers have to be cognizant of the overall state of different amenities as well as an in-depth insight into their actual condition. However, legacy systems rely on different modules for different functions. For instance, facility bookings are recoded in a basic spreadsheet while expenses are logged on a different system. This fragmented view hampers managers from getting a full view or to extract any analytical data. 

Solution: The ApnaComplex ERP dashboard is designed to give community managers and admins a comprehensive overview of all facilities, consolidating features such as pending complaints. A booking calendar offers an overview of all reservations at a glance.

High demand during peak hours

Facilities tend to see heavy usage during specific times. For instance, aerobics rooms are in high demand in the morning while the badminton courts will have long queues in the evenings. Conflicts arise when some individuals monopolize facilities, such as occupying a squash court for an undue period. 

Facility booking on spreadsheets can cause gaps since residents cannot be informed of all available slots in real-time. Establishing appropriate schedules becomes even more complex when the management wants to restrict access.

Solution: ApnaComplex controls facility usage through a digital booking system. Residents have to choose their preferred time slot when reserving facilities. The booking system guarantees that no one can prolong their usage beyond the allocated time. Community administrators also have the option to limit access by temporarily suspending bookings for a specific duration. For instance, bookings were completely disabled during the COVID closedown. 

Read more about the benefits of facility booking in How Digitalisation Improves Access and Efficiency.

Gaps in invoicing 

One of the challenges in facility management is sending invoices and ensuring timely collections for paid facilities like banquet halls. Facilities are a lucrative source of revenue and can help in offsetting their operating costs. However, invoicing challenges include delayed or irregular invoicing, human errors, and late or failure in making payments. 

Solution: In the case of paid facilities, payments have to be completed when making the reservation. This removes the chances of errors and delays in sending invoices or collecting payments.

Lack of asset maintenance 

The timely maintenance of assets is critical in ensuring well-run facilities. These assets include HVAC systems, high-end machinery like fitness equipment as well as furnishings. Assets like gym equipment also have a direct impact on the safety of users. Despite its importance, many managers struggle with an orderly approach to asset management.

Solution: ApnaComplex facilitates preventive maintenance by setting a servicing schedule with timely reminders. It ensures that maintenance activities are carried out regularly. Managers can plan for asset downtime, reduce breakdown and improve its lifecycle. They can also scan the asset QR to gain important information, such as its service history.

High operational costs

Controlling operational costs is one of the persistent challenges in facility management. Other than utility and inventory bills, the treasurer must also allot sufficient funds for asset upkeep and repairs. Given that avenues for earning revenues are limited, reducing the running cost of facilities becomes imperative.  

Solution: ApnaComplex leverages different means including analytical tools to help managers reduce their operational costs. For instance, the expense tracker gives us a realistic picture of consumption. Similarly, the inventory tracker records purchases, consumption, and stock level of the inventory.

Advanced inventory reports help to further optimise consumption. Managers can also access comprehensive reports on bookings, usage, and revenue. Find out other avenues of How can ApnaComplex Help Reduce Society Management Costs.

You can read more in our article Facility Management: Challenges & Solutions. Learn more about how Centralisation is Changing the Game in Facility Management with ApnaComplex .

If you want to learn more about our facility management tools, get in touch with us at support@apnacomeplex or call 80886 11229. Our team will help you understand the various features you can use for reducing operational costs while improving the administration of your facilities!

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Home rental management company
Paromita Datta
August 17, 2023

What it Costs to be a Landlord: Factors to Consider Before Renting your Home

Real estate is a long-term investment with steady capital appreciation. A rental income is a valuable tool in maximising the investment potential and ensuring that the property can pay for itself. However, this calculation often ignores the full cost of being a landlord which can range from property tax to regular home painting.  A home rental management company can help minimising these costs while maximising the rental income.

Factoring in these costs is important in calculating your liabilities as a homeowner. It also gives you a realistic picture of your true rental income.

Cost of being a landlord

Some fixed costs come with owning any property, such as property tax. In addition, you may be paying regular EMIs on your home loan. Even with inherited property, you cannot avoid some recurring expenses. Here are some of the key expenses that every landlord must consider:

Taxation 

Every homeowner has to pay the property tax irrespective of its rental status. But this may differ from state to state. For instance, property tax is based on market value in Mumbai, while in Delhi, it’s based on the built-up area. In addition, you may also have to pay tax on rental income. Do check deductions based on home loan interests and expenses incurred in the repair or maintenance of the property. 

Home loan EMIs

If you’ve bought the house on loan, you are probably still paying off the loan. In most cases, the EMI will exceed the rental income. This is a recurring expense and can be a considerable burden. 

Non-occupancy charges

Where the home or apartment is lying vacant, the landlord is liable for paying non-occupancy charges. This fee is charged in lieu of maintenance charges. Failure to pay non-occupancy charges can result in the society declaring the homeowner as a defaulter. They can also refuse to issue a no-dues certificate when the owner decides to rent or sell the property. You can read more about non-occupancy charges in this article.     

Regular maintenance and upkeep

Every house needs regular maintenance whether it is occupied or not. Depending on the terms of the rental agreement, some repairs and maintenance are the responsibility of the tenant. However, major repairs are usually under the purview of the landlord. This includes structural repairs like leaking roofs. 

Maintenance costs are often a major source of acrimony between landlords and tenants. A rental agreement is vital in avoiding such disputes. Read here to learn more about rental agreements and how a home rental management company can help in negotiating the best term for you. 

Insurance charges

Given the high cost of real estate, it’s a good idea to get property or landlord insurance. The insurance protects you from damage, theft, liabilities, and loss of income. While this is an added expense, you should see it as a necessary precaution. 

Utility payments

The tenant is typically responsible for paying the cost of utilities like electricity and broadband. However, the custom may change depending on the micro market and the rental agreement. For instance, utilities like the water bill may or may not be part of the rental. 

Loss from home vacancies

Your flat will fall vacant from time to time. You will be responsible for expenses like utilities, maintenance costs, and non-occupancy charges during such periods. You may also have to consider paying a property manager for its upkeep. A new tenant will require additional spending in ensuring that the house is ready for habitation. This will include painting, deep cleaning, and other repair costs. Finally, you must also factor in the loss of income during the vacant stage. 

Tenant search costs

This includes costs associated with searching for tenants, like brokerage. You may have to pay a specialist to conduct a background search for your peace of mind. In addition, you will incur advertising or listing costs if you are planning to directly market your home. Finally, you must factor in the time spent looking for and finalising a new tenant. This will also include the time spent conducting site visits, particularly if it affects your non-rental income.

Renegotiation costs

Continuing with a tenant helps in avoiding the tenant search costs which can be considerable. You also completely avoid any loss of income from non-occupancy. Renegotiation is also important in hiking the rent to keep up with the market rates and maximise rental income. But it usually comes at a cost. The tenant may ask for additional services such as home painting, deep cleaning, or other repairs.

Want to maximise your rental income? Read about how a home rental management company can help in  Our Seven Smart Tricks for Getting the Best Rent for your Home.

As a home rental management company, ApnaComplex Rentals offers a highly cost-effective alternative with hassle-free listing. The end-to-end rental management services include support with site visits and rental negotiations. It also includes KYC and background checks. With a record of high rental yields, ApnaComplex further helps in offsetting the costs of being a landlord. Read more about 

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Brief guide to Society maintenance charges
Paromita Datta
August 8, 2023

Know all about Society Maintenance Charges

One of the expenses of living in a gated community is the maintenance fee. It is the price one must pay to avail of the amenities and facilities. As a regular expense, it can significantly raise your cost of living. Hence, it’s important to understand society maintenance charges and what they consist of. 

What are society maintenance charges?

Maintenance charges are imposed on homeowners for the upkeep and repair of communal spaces and utilities like lifts, clubhouses, and generators. The calculations and inclusions in maintenance charges can differ from one society to another. 

Landlord or tenant- who pays the maintenance charges?

The responsibility of paying the maintenance charges depends on the micro-market customs. For instance, it is typically included in the total home rent in Mumbai. Hence, the landlord is responsible for making the payment. In Bengaluru, the onus of paying the maintenance charges usually lies with the tenant. 

Irrespective of your location, it is always advisable to fix this responsibility in the rental agreement. Find out more about the importance of a rental agreement here. 

What does maintenance consist of?

Maintenance charges can vary to some degree according to the society’s size and its bye-laws. However, broadly they will include: 

  • Expenses covering the repair and maintenance of buildings and assets like lifts.
  • Parking charges 
  • Property tax
  • Water bill
  • Sinking fund 
  • Non-occupancy charges (where the homeowner is not residing in the home)
  • Service charges such as housekeeping and security
  • Other charges, such as election funds.

What are the criteria for calculating society maintenance charges? 

Maintenance charges are often one of the biggest sources of conflict in gated communities. Reasons can range from disagreement over the inclusions to the mode of calculations and the amount charged. Hence, it’s important to understand how these are charged. There are three main criteria in calculating maintenance charges:

Based on size: The common practice is to fix the charges as per the size of the apartment or home. Unfortunately, this can often lead to conflict if the amount is disproportionately high for residents with larger flats. 

Equal charges: This fee, based on a certain formula, is common in residential complexes where all the houses are almost the same size. 

Hybrid charges: The hybrid system is a combination of fixed and variable amounts. Some components are calculated based on the size of a unit while other are levied equally. For instance, common amenities like swimming pools and lifts are fixed equally. Other factors like additional parking space, repair and maintenance charges may be decided as per the size of the unit. This is seen as a fairer system as the size of a unit is considered only when applicable. 

Is it mandatory to pay society maintenance charges?

Are you liable to pay maintenance even if your flat is lying vacant? Yes, if the society bye-laws specify so. In fact, the society can impose a reasonable penalty for non-payment of charges. They can also initiate legal proceedings to recover dues with interest. 

Know your society maintenance charges with ApnaComplex

Find out about your gated society maintenance charges by checking the bye-laws in the ApnaComplex app. You can find them under the ‘My Unit’ tab in the bottom navigation panel. 

Given the importance of maintenance charges, it is also critical that the responsibility for its payment is specified in the rental agreement. Defaults can result in large penalties for the landlord. At the same time, tenants can lose access to communal amenities and facilities. ApnaComplex Rentals offers end-to-end support that includes assistance with finalising a rental agreement. 

Write to us at rentals@apnacomplex.com if you want to know more about ApnaComplex Rentals.

1 Comment on Know all about Society Maintenance Charges InProduct News
Picking the Right RWA Management Software
Paromita Datta
August 3, 2023

Choosing the Right RWA Management Software: What You Should be Looking for

Resident Welfare Associations (RWA) have the uphill task of managing a gated community. Even a small community requires multiple functions that range from managing accounting to maintaining assets at optimal conditions. This can be even more challenging when we consider that RWA members work voluntarily. This is why the selection of an RWA management software is so critical. 

What is RWA management software?

RWA management software is a digital solution that is specifically designed for managing a gated community. ApnaComplex is a leading RWA management software that simplifies community operations by consolidating different solutions on one platform. It saves the time and effort of working with different software. 

ApnaComplex offers an app-based interface for residents backed by an award-winning Enterprise Resource Planning (ERP) solution. Residents can register complaints, approve visitors and communicate with others. The ERP solution facilitates admin work through multiple functionalities. 

What should you be looking for?

The best RWA management software should contain: 

Mobile interface

A community management solution is meant to connect the resident with the admin. The ideal way to achieve this goal is through an app-supported solution where residents can approve visitors or lodge complaints. 

Visitor management system (VMS)

Residents should get real-time alerts on visitor entry which they can approve or decline. This ensures that only approved visitors can enter the premises. Residents should also be able to pre-approve visits to ensure that entries are smooth with minimal disruptions for both the visitor and the residents. 

ApnaComplex further facilitates visitor entry through a specially designed interface for society guards. Available in vernacular languages, it is easy to use. Read more about ApnaComplex digital VMS and its 7 key Features.

Billing & accounting

The platform should facilitate society’s accounting by simplifying the billing and collections process. With ApnaComplex, you can set up recurring maintenance invoices to be sent as per formulae or a fixed value. Auto-calculate late payment charges, reconcile accounts easily, track expenses, and have instant access to more than 100 financial reports.

Learn how ApnaComplex Simplifies Accounting with Automated Solutions.

Asset management

Maintaining all the assets and equipment in a large gated community can be challenging given the scope of the work. An ideal solution should keep track of asset usage and depreciation while ensuring timely maintenance. ApnaComplex aids predictive maintenance by facilitating a single view of all assets. Managers can set up a maintenance schedule and get reminder notifications. 

Don’t miss our short guide to Improve Society Asset Management. And how ApnaComplex can Help You.

Facility booking system

Managing facilities like a badminton court or spa can be challenging, especially during peak times. With ApnaComplex, residents can book facilities on the app. You can also add usage rules and charges where applicable. Admins can get revenue and booking reports to understand usage patterns. 

Find out How Digitalisation Improves Access and Efficiency in Facility Management.

Community engagement

Engaging the community is critical for fostering a sense of fellowship among the residents. It also helps the RWA gauge opinions and gather public support for policies. However, it can be challenging to keep an open communication channel in a large society. 

ApnaComplex offers an effective solution through its communication module. People can join online forums and form special interest groups. The admin can post notices and upload important documents. The app also acts as a repository of important documents like society bye-laws and minutes of committee member meetings. 

Learn more about driving community engagement with ApnaComplex here.

Complaint management 

Gated communities command a premium rate because of their promptness in addressing resident issues like repairing the plumbing or electrical fittings in their house. With ApnaComplex, residents can lodge complaints on the app and track its resolution. They can also rate the complaints or leave feedback. 

It is also a powerful tool for admins who can leverage the system for quick resolution. The ERP dashboard is designed for admins to get an overview of complaints and track their resolution. It allows them to set work timings. It also ensures that unresolved complaints are automatically moved to the next supervisory level through a three-layer escalation matrix. 

Learn more about How a Digital Complaint Management System Leads to Speedy Redressal.

You can find more details in our article on what to Expect from an Apartment Management Software. You can also book a free demo. Alternatively, get in touch with us at support@apnacomeplex or call 80886 11229. Our team will help you understand the various features you can use to make your job easier and more efficient.

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