Owning an apartment is a significant investment, but it comes with its own set of expenses. One of these expenses is apartment maintenance charges, which covers the cost of repairing and maintaining the common areas and facilities of the apartment complex. In this article, we will discuss how to calculate apartment maintenance charges.
What is Apartment maintenance charge
Apartment maintenance charge is the fee that apartment owners pay to cover the cost of maintaining and repairing common areas and facilities in an apartment complex. These charges are usually collected on a monthly or quarterly basis and cover expenses such as salaries of maintenance staff and housekeeping, electricity for common areas, and the cost of maintaining facilities like elevators, swimming pools, gyms, and gardens. Maintenance charges are typically calculated on a per-square-foot basis, with fixed and variable costs included. These charges are necessary to keep the apartment complex in good condition and ensure that common facilities are well-maintained for all residents.
Benefits of Apartment maintenance charge
Apartment maintenance charges have several benefits for both apartment owners and the apartment complex as a whole. Some of the benefits include:
- Regular maintenance: Maintenance charges ensure that common areas and facilities are regularly maintained and repaired. This helps to prevent major issues and keeps the complex in good condition.
- Shared expenses: Maintenance charges are shared among all residents, making it easier to cover the cost of maintaining common areas and facilities.
- Predictable expenses: With maintenance charges, apartment owners know exactly how much they need to pay for maintenance each month or quarter, making it easier to budget for this necessary expense.
- Increased property value: A well-maintained apartment complex with clean, functioning facilities and amenities can increase the value of individual apartments, making them more attractive to potential buyers or renters.
- Improved quality of life: Regular maintenance and repair of facilities like elevators, swimming pools, and gyms can improve the quality of life for residents, making the apartment complex a more desirable place to live.
Understanding Apartment Maintenance Charges
Apartment maintenance charges are usually calculated on a per-square-foot basis, which means that the larger your apartment, the higher your maintenance charges will be. The charges are usually collected on a monthly or quarterly basis and cover the cost of maintaining common facilities like elevators, swimming pools, gymnasiums, clubhouses, gardens, and security.
Calculating Maintenance Charges
To calculate maintenance charges, the first thing you need to do is to understand the components of the charges. Maintenance charges are divided into two parts: fixed and variable charges.
Fixed Charges: These are the charges that are fixed for all residents irrespective of the size of the apartment. Examples of fixed charges include salaries of security guards, maintenance staff, and housekeeping staff, and the cost of electricity for common areas.
Variable Charges: These are the charges that vary depending on the size of your apartment. Examples of variable charges include the cost of water, electricity, and gas, the cost of maintaining lifts and elevators, and the cost of landscaping.
To calculate maintenance charges, follow these steps:
Step 1: Calculate the total area of your apartment
The first step is to calculate the total area of your apartment, including the carpet area, built-up area, and super built-up area. The carpet area is the actual area of your apartment, while the built-up area includes the carpet area plus the area of the walls. The super built-up area includes the built-up area plus the common areas like corridors, lifts, and staircases.
Step 2: Calculate the fixed charges
Next, calculate the fixed charges by adding up the salaries of the security guards, maintenance staff, and housekeeping staff, and the cost of electricity for common areas. Divide this total by the total area of the apartment complex to get the fixed charges per square foot.
Fixed charges per square foot = Total fixed charges / Total area of the apartment complex
Step 3: Calculate the variable charges
To calculate the variable charges, you need to find out the cost of water, electricity, and gas, the cost of maintaining lifts and elevators, and the cost of landscaping. Divide this total by the total area of the apartment complex to get the variable charges per square foot.
Variable charges per square foot = Total variable charges / Total area of the apartment complex
Step 4: Calculate the total maintenance charges
To calculate the total maintenance charges, add the fixed charges per square foot to the variable charges per square foot and multiply the sum by the total area of your apartment.
Total maintenance charges = (Fixed charges per square foot + Variable charges per square foot) x Total area of your apartment
For example, if the fixed charges per square foot are $0.50 and the variable charges per square foot are $1.50, and your apartment’s total area is 1,000 square feet, your total maintenance charges would be:
Total maintenance charges = ($0.50 + $1.50) x 1,000 = $2,000 per month
Conclusion
Calculating apartment maintenance charges can seem overwhelming, but it’s a straightforward process once you understand the components that make up the charges. Remember that maintenance charges are necessary to keep the apartment complex in good condition and to ensure that common facilities are well-maintained. So, be sure to factor them into your budget when buying an apartment.
