Money & bye-laws

Per sq ft or fixed? Choosing how your society bills maintenance

Every society splits its common expenses among flats somehow. The two honest ways are equal (fixed) charges and area-based (per sq ft) charges, and most committee arguments about maintenance are really an argument about which philosophy applies to which expense. Here is the clean way to think about it.

The two philosophies

Fixed per flatPer sq ft
LogicServices are consumed per householdCosts scale with the size of what you own
Fits bestSecurity, housekeeping, clubhouse, adminRepairs, sinking fund, structural insurance
Feels fair toLarger flatsSmaller flats
Watch outSmall flats subsidise big ones on asset costsNeeds a reliable area register

What model bye-laws actually say

Model bye-laws in several states split the difference: service-type expenses are shared equally among flats, while property-linked charges follow the flat: repair fund and sinking fund as a percentage of construction cost (which scales with area), water by inlets or consumption, parking by slots. In other words, the honest answer is usually a mix, head by head, not one rule for the whole bill. Your society's registered bye-laws are the deciding document.

Worked example

A 50-flat society spends ₹2,96,000 a month. Two flats compare like this:

Charge headBasis2 BHK (900 sq ft)3 BHK (1,480 sq ft)
Security + housekeeping + adminEqual₹2,600₹2,600
Repairs + sinking fund₹2.20 / sq ft₹1,980₹3,256
Total₹4,580₹5,856

Both flats pay the same for the guard at the gate; the bigger flat carries more of the building's long-term upkeep. Most general bodies find this the easiest split to defend.

If your society wants to switch basis

How Basaira handles this

Basaira charge plans carry their basis per head: fixed per flat, or a rate times the flat's registered area. The flat register holds the areas, invoices show the multiplication on their face (rate × sq ft), and before any invoice run the committee sees a preview of every flat's bill, including who crosses the GST line. Changing basis is a configuration change with a preview, not a spreadsheet rebuild.

Common questions

Can different heads use different bases?

Yes, and that is usually the fairest design: equal for services, per sq ft for asset-linked heads.

Which area do we use?

Whichever your bye-laws define, applied consistently to every flat. Mixing carpet for some flats and built-up for others is how billing disputes start.

Do vacant flats pay?

Yes. Charges attach to the flat, not to occupancy; most bye-laws allow at most a partial concession on specific service heads, if the general body has resolved one.

Rules differ by state and by your society's registered bye-laws. Treat this as an orientation, not legal or tax advice: confirm specifics with your society's CA or the registrar.

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