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Maintenance charges vs CAM charges

Maintenance charges are what a residential society or its maintenance agency bills owners for running the building. CAM (common area maintenance) charges are the commercial equivalent, billed to tenants or owners of offices, shops and malls, usually per square foot of chargeable area and separately from rent.

Side by side

FactorMaintenance chargesCAM charges
Property typeResidential societiesOffices, malls, commercial complexes
Billed byThe society, association or builder until handoverThe landlord, owner's association or facility manager
BasisPer square foot or flat, as the society decidesUsually per square foot of chargeable area
Paid byThe owner, or the tenant if the lease says soUsually the tenant, as the lease says
CoversSecurity, cleaning, lifts, common power, repairsSame, plus air conditioning and marketing in some malls
EscalationSet by the societyOften in the lease
GSTCan apply above thresholds set by GST lawGenerally applies

When Maintenance charges matters

Before buying a flat, ask for the current maintenance bill and any arrears; a buyer can inherit unpaid dues.

When CAM charges matters

Before leasing commercial space, compare total occupancy cost: rent plus CAM, on the same area basis.

In more detail

A residential society's charges are decided by its members under its bye-laws; a builder's charges before handover are set by the agreement. In commercial leases, CAM is a contract term and can be negotiated.

Unpaid maintenance follows the flat in practice: societies usually ask for a no-dues certificate before transferring membership.

Common questions

Is CAM the same as maintenance?

It is the commercial version: common area maintenance, billed per square foot of chargeable area under a lease.

Who pays maintenance on a rented flat?

Whoever the rent agreement says. Commonly the owner pays the society, and the tenant pays any charge the agreement passes on.

Is GST charged on society maintenance?

It can be, above thresholds set by GST law for the member's charge and the society's turnover. Check the current notification.

Sources

  • State co-operative society acts and apartment ownership acts
  • Central GST notifications on services by resident welfare associations

A plain-language summary, not legal or tax advice. Rules set by states differ and change; check the current position for your property.

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