Non Occupancy Charges in Housing Societies: Everything You Need to Know

When you own a flat in the housing society but do not reside there, you might still be liable to pay non occupancy charges. The housing society levies these charges to cover the additional maintenance and management efforts required to maintain the flat that is vacant or rented. You need to understand the non-occupancy charges if you live somewhere else but still retain the property ownership. Each housing society has its own rules and rates, as these are guided by local co-operative housing laws.

Whether you are planning to rent out your property or keep it unoccupied, knowing how non-occupancy charges in society work can help you plan your finances and avoid unnecessary disputes with the society committee.

What Are Non-Occupancy Charges?

Non occupancy charges are fees that are collected by the housing society from the flat owners who do not reside in the apartment. Whether the property is occupied by the rentals or left vacant, owners need to pay the charges to help the society manage the additional administrative charges and maintenance.

Why Do Societies Collect Non Occupancy Charges?

Non occupancy charges are collected to ensure a fair financial contribution from owners who own the apartment but do not reside there.

Whether the flat is vacant or rented, the flat still utilizes the common amenities.

Non occupancy charges in the society help in covering the maintenance, security, and other management costs.

These charges maintain a proper balance, ensuring the resident members are not burdened with additional expenses.

This also helps in the smooth functioning, maintaining the infrastructure, and other charges.

Legal Perspective on Non-Occupancy Charges in Society

From the legal point of view, no occupancy charges in the society are recognized and regulated under the Cooperative Societies Act and Rules applicable in the different states of India. Societies are permitted to levy non occupancy charges to contribute daily to the maintenance charges even if the owners do not reside. However, the law has limits on the charges to prevent the societies from overcharging the non-resident owners.

For instance, according to the Maharashtra Cooperative Societies guidelines, non occupancy charges cannot exceed 10% of the service charges. Societies should also mention the structure of the charges in the bylaws. Individuals can challenge any unjustified charges legally. Therefore, the societies and the owners must understand the rights regarding the non occupancy charges.

How Are Non-Occupancy Charges Calculated?

Non occupancy charges are calculated on the basis of the percentage of the maintenance charges paid by the resident members. Each hosing society is expected to mention the exact method of calculation the its bylaws. Mostly, societies calculate the monthly service charges applicable to all the members and then add 10% as the non occupancy charges for does who do not stay in their apartment.

Also, you must know that these charges are only applicable when the flat is vacant or rented to a tenant. If the owner’s family is occupying the apartment without rent, then non occupancy charges will not be applicable, depending on the society’s rules.

When and How Are These Charges Applied?

Non occupancy charges in the society will be applicable once the society is informed through an official notice or when a tenant starts residing in the flat. Societies usually ask the owners to declare whether they are residing in the apartment or it is occupied by a tenant. Once the society receives the declaration, the society will add non occupancy charges to the owner’s monthly maintenance bill.

The method and the timing of the charges are mostly specified in the bylaws of the society. Some societies begin the charges from the month the apartment is rented out, while some societies impose these charges after the grace period if the apartment remains vacant. Additionally, if the owner’s immediate family occupies the apartment, society may also waive the non occupancy charges.

Tips for Homeowners to Handle Non Occupancy Charges Efficiently

You must carefully read the society’s bylaws to understand how the non occupancy charges are calculated and applied by the society.

Inform the society in writing if you are renting the apartment or if your property is going to be unoccupied. You may also need to submit the details of the tenant if needed.

Maintain proper communication with the society and raise concerns politely if you have doubts about the non occupancy charges that may be wrongly calculated.

You must review the maintenance bills consistently to check if the non occupancy charges are applied correctly and only when applicable.

If you are the owner and your immediate family is residing on your property, you must submit proof to the society and request an exemption from the charges.

Maintain all the written copies with the society to avoid any misunderstandings or disputes in the future.

Conclusion

Understanding the non occupancy charges in society is crucial for every homeowner. These charges ensure that the maintenance, security, and other administrative charges are fairly distributed among the resident and non-resident members. Always refer to the society’s bylaws and stay updated about the legal limits, and maintain clear communication with the society’s committee to avoid confusion or disputes. Ensure handle your finances smartly, so that the no occupancy charges in society do not become a burden.