1. Why consider self‑management?
Cost savings
By eliminating professional management fees, a medium‑sized society can save ₹50,000 to ₹2 lakh per year. Maintenance can be charged fairly using per‑square‑foot, equal or hybrid models.
Faster responses
When committee members live on‑site, plumbing leaks or lift issues can be addressed in hours rather than days. You decide which contractor to call and don't wait for a facility manager.
Community control
Self‑management encourages transparency and participation. Budgets, contracts and policies are decided collectively at the Annual General Body Meeting (AGM). This fosters trust among residents and allows you to prioritise projects that matter most.
Estimate your charges and corpus fund
Housing societies collect maintenance charges to cover salaries (security guards, cleaners), upkeep of lifts and pumps, utilities and common area repairs. Charges are usually calculated using one of three models:
Per Square Foot model
Multiply the flat's carpet area by a rate (e.g. ₹3 per sq ft = ₹3,000/month for a 1000 sq ft flat). Fair for similar apartments.
Equal Distribution model
Total expenses are divided equally among all units; useful when flats are similar.
Hybrid model
Fixed costs (security, electricity) are shared equally; variable costs (repairs, sinking fund) are allocated by flat area. Recommended in Maharashtra Co‑operative Societies bye‑laws.
Most societies also build a corpus/sinking fund of at least 0.25 % of the building's reconstruction cost. This reserve pays for major repairs such as repainting, lift replacement, waterproofing and structural works.
Calculate your maintenance charges
Enter your annual budget, flat sizes and preferred allocation method. The tool instantly shows maintenance per flat and period. Then use our Corpus Fund Planner to list major components and plan contributions over 10–20 years.
Roles and legal obligations of the managing committee
A managing committee is responsible for day‑to‑day operations, finances and compliance. Key duties include:
Financial management
- Deposit and record funds: Deposit all monies received and issue receipts. Maintain registers of member contributions, repair funds and corpus fund balances.
- Collect and compute charges: Keep track of maintenance, parking and other contributions; implement a due‑collection procedure for late payments and verify interest charged to defaulters.
- Pay vendors and reconcile accounts: Sign cheques or execute online payments, reconcile ledgers and bank statements annually.
- Prepare budgets and statements: Draft the annual budget, propose maintenance and sinking fund rates, and present financial statements to members. Societies exceeding ₹20 lakh annual turnover and charging >₹7,500 per month must collect and remit 18 % GST on maintenance.
Governance and compliance
- Hold Annual General Body Meetings: The AGM must be held once every financial year (usually by 30 September). It approves accounts, budgets, elections and maintenance charges. Notice should be issued 14–21 days before the meeting, and a quorum is required.
- Conduct committee meetings: Meet at least monthly to review operations. Keep minutes and ensure decisions follow bye‑laws.
- Adhere to state laws: Register under the Societies Registration Act 1860 and comply with state-specific acts like the Maharashtra Flat Ownership Act 1970 or Karnataka Apartment Act 1972. Maintain registers (Cash Book, General Ledger, Sinking Fund Register, Minutes Book) and file tax returns under the Income Tax Act if applicable.
Operational duties
- Maintain property: Inspect buildings, maintain lifts and water pumps, carry out renovations, and manage service staff.
- Manage documents and contracts: Attest documents (lease, conveyance deed, share certificates), finalise vendor contracts and supervise service providers.
- Communicate with members: Issue demand notices for maintenance, respond to complaints and keep members informed.
- Regulate parking and common amenities and enforce by‑laws by imposing fines where necessary.
Tip
Establish a simple due‑collection policy. Interest charged on late payments is exempt from tax and encourages timely contributions.
Transitioning to self‑management: five steps
1. Assess readiness
Survey residents to ensure enough volunteers are willing to serve. Review your current budget, maintenance charges, sinking fund balance and existing issues.
2. Review your management contract
Check termination clauses and notice periods. Many contracts require 1–3 months' notice, but consult your bye‑laws and local regulations.
3. Pass a resolution at the General Body Meeting
A formal vote is usually required to end the contract and elect a new committee. Ensure the decision is documented in the minutes.
4. Secure all records
Obtain financial statements, vendor contracts, insurance policies, member registers and compliance certificates from the outgoing manager.
5. Set up systems
Open a bank account in the society's name, implement accounting software or spreadsheets, establish payment collection mechanisms, and plan maintenance and corpus contributions using our calculators.
Frequently asked questions
Do committee members need special training?
No formal certification is required, but training in co‑operative bye‑laws, basic accounting and RERA compliance is beneficial. Many state federations and platforms offer workshops.
How much time does self‑management require?
For a 30‑flat society with basic amenities, expect 1–2 hours per week per committee member, with additional time during AGM preparation and major projects. Larger societies or those with complex amenities require more effort.
What if a member refuses to pay maintenance?
Follow your due‑collection procedure: send reminders, apply interest (which is exempt from tax) and, if necessary, limit access to amenities as permitted by bye‑laws. Persistent defaulters can be taken to the Co‑operative Registrar.
Can we switch back to a professional manager?
Yes. At any time, the General Body can vote to hire a facility‑management company. Ensure all records are organised and the new contract protects the society's interests.
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