Housing societies are allowed to levy additional non-occupancy charges when a flat is rented out as per the Maharashtra Cooperative Societies Act, 1960.

However as per a 2001 government circular (dated 1st August 2001), these charges are capped at 10% of the service charges applicable to the flat.

This circular clarified that non-occupancy fees cannot exceed 10% of the total service charges (excluding the municipal tax component).

For example, if your flat’s monthly maintenance fee is Rs 2,000, which includes Rs 400 as municipal taxes, the non-occupancy charges will be calculated on Rs 1,600 (i.e., Rs 2,000 - Rs 400). Non-occupancy charges are typically 10% of this amount, which in this case would be Rs 160.

Therefore, you would pay Rs 2,160 per month as the total maintenance cost, which includes the regular maintenance fee of Rs 2,000 and an additional Rs 160 for keeping a tenant in your flat.

This is now enforceable through Model Bye-Laws, which specifies that societies can charge these fees if a flat is rented, but only up to the 10% limit.

If members have rented their flats to close relatives, such as parents, siblings, children, in-laws, grandchildren, or any other relatives recognized by the society, non-occupancy charges will not be applicable!

PS : Real estate is a state subject in India. This regulation is for Maharashtra only.

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