Common Area Maintenance (CAM) Charges
What do you mean by CAM Charges?
As the name suggests, CAM charges, or Common Area Maintenance Charges, refer to the fees paid by owners and tenants for maintaining the common areas and shared amenities of a residential or commercial building. These include places like swimming pools, gardens, parking spaces, etc. These charges are essential because they help maintain the quality and cleanliness of the common areas, improving living standards.
In residential apartments and gated communities, CAM charges are required to clean and maintain corridors, elevators, gardens, swimming pools, gyms, clubhouses, playgrounds, parks, and sports facilities. They are also used for waste management and managing security services.
CAM charges are used for cleaning services, maintaining elevators and escalators, and security services in commercial buildings. These housing society charges also help maintain parking spaces.
Components of CAM Charges
The table talks about the components of the CAM charges:
| Maintenance | The shared amenities and the common spaces are maintained daily. |
| Utilities | Includes electricity for common areas, water for landscaping and communal restrooms, and gas if there are any communal heating systems. |
| Housekeeping | The amount is required to pay the housekeeping staff who do all the cleaning. |
| Administrative Costs | The property management staff’s salaries, office supplies, legal fees, and other administration expenses are included. |
| Security Services | The costs involved in hiring security staff and setting up security systems. |
| Landscaping and Gardening | The costs for landscaping and gardening, such as mowing lawns, trimming bushes, planting flowers, and maintaining any communal parks or gardens, are covered. |
How are CAM Charges Calculated?
The CAM charges are calculated by dividing the overall maintenance cost and facilities by the property’s total square footage and multiplying it by the total area occupied by the tenant. The answer is your CAM charges.
Factors Affecting Charges
The factors that determine the CAM charges are as follows:
- Property Size: Properties with multiple floors will have higher maintenance charges than small residential buildings.
- Property Location: If the property is prime, CAM charges will be higher.
- Market Rates: The market rates also determine the CAM charges.
- Amenities: Any building with many amenities is expected to have a high maintenance charge.
Steps to Calculate CAM Charges
Calculating the CAM is a very easy process. The steps involved are:
- Determine your common spaces and shared amenities.
- The overall CAM costs have to be known.
- Calculate the rate of CAM.
- Divide the CAM.
Tips for Residents and Property Owners
There can be disputes between the tenants and the property owners regarding the CAM charges. The steps below can be followed to resolve any dispute:
- The lease agreement for the CAM charges must be carefully read repeatedly to align the expenses with the agreed-upon terms.
- Tenants and property owners must communicate openly and face-to-face to discuss concerns. It is always advisable to maintain a positive relationship to solve any issues.
- A professional advisor, like a Certified Public Accountant, can be consulted if the issue persists.
- Mediation or arbitration can be pursued to accept a mutual solution if the dispute is unresolved.
Pay Your Maintenance Charges With NoBrokerHood
Paying your maintenance charges is essential for maintaining your premises. It is important to pay your maintenance on time to avoid any disputes. To pay your CAM charges easily, you can use the NoBrokerHood App. This is a user-friendly platform designed for everyone. This app will send you reminders to pay your maintenance charge on time. You can also secure your payments digitally through this app. With this app, you will never miss any payment. Don’t wait. Download the app and make your payments with NoBrokerHood Today!
Society Related Article:
| Housing Society Fund Utilisation |
| Franking Charge |
| Gated Community |
| Society Corpus Fund |
| Automatic Boom Barrier |
FAQs
Q: Is it mandatory to pay CAM charges?
A: Yes, it is mandatory to pay CAM charges.
Q: What are covered under the CAM charges?
A: All the basic maintenance charges are covered under your CAM charges.
Q: Can I pay CAM charges with any app?
A: Yes, you can pay your CAM charges with NoBrokerHood.
Q: What if I don’t pay my CAM charges on time?
A: If you fail to pay the CAM charges, your landlord can take legal action against you.
Q: Can I download NoBrokerHood on my phone?
A: Yes, you can download the NoBrokerHood app on your phone and use the society management system effectively.