"What is non occupancy charges in housing society"

 

What are occupancy charges in a housing society

on in Bye Laws, Tenants

All you need to know about Non-Occupancy Charges if you have a flat

What are the non-occupancy charges?

Non occupancy charges are applicable for flats that are not occupied by the owner or his family members and are given on rent for income. Occupancy Charges are one of the charges among various other charges listed in the bylaws for a Co-operative Housing Society in Maharashtra.
For Ex. Sanket Mahadik (name changed) recently bought a 2BHK apartment in Mumbai as an investment for rental income. However, when he gave his flat on rent,  society imposed “non-occupancy charges” on it. Many flat owners like Sanket don't know about these charges prevalent in Maharashtra. 
In the absence of clear guidelines or chs bye-law information, it has often caused disputes between a committee and members. In most cases, flat owners believe that they have been levied exorbitant charges by society. The Society, on its part, justifies levying such charges to members for subletting their flats and earning a rental income. As a committee member, you should be updated with the latest GR for nonoccupancy charges and other notifications, GR, circular too which is published by the government whenever.

How to calculate the nonoccupancy charges? | Non Occupancy Charges Rule

The rules and regulations of applicability of a charge of non-occupancy are detailed in the Non-Occupancy Charges Circular, Maharashtra. According to Section 79A of the Maharashtra Cooperative Societies Act, 1960. Non occupancy charges circular Maharashtra clearly mentions the society can collect max 10% of service charges. 

As per bye-law no. 67(a)(x) & 43(c) clearly mention "He shall pay non-occupancy charges to the society." Non-occupancy charges shall be levied by the circular issued by the government of Maharashtra and the commissioner of cooperation from time to time and shall not be levied if the flat is occupied by the family of the member as defined under these By-laws.

Non-occupancy charges should not be more than 10 percent of the service charges. For example, if the service charges in the monthly maintenance bill are Rs 1,510 per month, non-occupancy charges would be  Rs 151 per month. Check here how to calculate service charges. non-occupancy charges can not be charged on the total bill amount, only 10% of service charges. 

What are the service charges?

According to by-law 68 of the model by-laws, service charges include salaries to staff, housekeeping charges, printing and stationery charges, common electricity charges, Accounting Charges, Audit Fees, Security charges, and any other common charges. You can check how to calculate the equal maintenance charges irrespective of flat area.

Who will pay nonoccupancy charges?

A member (Flat Owner) of the society who given his flat on rent for income will pay Non-Occupancy Charges. 

When are nonoccupancy charges not applicable?

As per Non-Occupancy Charges rules, a charge for non-Occupancy is not levied if: –

1. If the flat is occupied by the flat owner and stays with his/her family. 

2. If a close member of the family (parents, spouse, children, siblings including other blood relations) is occupying the flat. family means as per bye-law are defined here.

3. If the flats are not sublet and vacant or locked. 

What happens if the flat owner refuses to pay nonoccupancy charges?

If a flat owner refuses to pay the Non-Occupancy Charges, the Managing committee can send a reminder notice to the owner. The Managing Committee will declare the owner a ‘defaulter’ if the member will not pay the dues for 3 months.