Sam (NA) 07 January 2013

Yearly rental fees charged by society

I have a flat in Co-operative Housing Society in Mumbai, India and I want to put it on rent.

I approached society and they told me that, I need to pay Rs. 5000 every year, If I want to put flat on rent.

This charge is over and above Non Occupancy Charge, charged by the society in month maintenance.

Society said as I will make money, by putting my flat on rent, society also needs to get something out of it. In return society will provide all help, if there is an dispute on my flat.

Can society charge me Rs. 5000 per year, for putting my flat on Rent ..? What does the law say, how much can society charge...?

If its illegal to charge the amount, then what legal action can I take against society...?

Appreciate your help & guidance.

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5 Replies

Mahesh Shah (Advisor) 07 January 2013

Society can charge up to 10% of Maintenance Charges as Non-Occupancy Charges. If society demands more, you can write a complaint to The Deputy Registrar of Societies of your ward.

Tajobsindia (Senior Partner ) 07 January 2013

In a Bombay based CHS this charge was under dispute and the Government diktat of 10% (of Service Charges) ceiling was upheld by HC and reaffirmed by SC. As long as this extra maintenance does not exceed 10% (Exclusive of Property Taxes) it is deemed to be a fair demand.

Sam (NA) 07 January 2013

Thanks for the prompt response.

So 10% ceiling is on Monthly Maintenance or is it on Property value or some other amount ...?

Monthly maintenance is around 1500 + 200 for Non Occupany Charge.

Mahesh Shah (Advisor) 07 January 2013

10% ceilling is only on Monthly Maintenance Charegs - Property Tax and not on the capital value of the property. This has been decided by the State Govt. and every society is abide by it.