Common Area Maintenance Charges (CAM)- Calculation + Example
Confused by the CAM charges line item on your society bill? You’re not alone. These fees keep your building’s shared spaces running smoothly, but many residents struggle to understand them. Let’s break down what CAM charges, why they matter, and how they work.
What are Common Area Maintenance Charges (CAM)?
CAM charges are monthly fees every housing society collects to maintain common areas. Think lobbies, stairs, parking, garden and other spaces that you share with other residents in your Gated Communities and Apartments
Why CAM Charges Matter in Apartments and Societies
CAM charges in society ensure safety and hygiene. Without them, lifts break down, lights flicker, and garbage piles up. They prevent disputes by sharing costs fairly.
What is Included in CAM? 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 to Calculate Common Area Maintenance Charges?
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.
Step-by-Step CAM Charges Calculation Formula
- Tally total annual common area maintenance expenses (e.g., ₹24 lakhs).
- Divide by society’s total built-up area (e.g., 1 lakh sq ft) = ₹24/sq ft/year.
- Multiply by your flat’s area share (e.g., 1000 sq ft) = ₹24,000/year or ₹2,000/month.
Final Overview 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.
CAM Expenses Examples from Real Societies
CAM expenses examples vary, but here’s what societies typically spend on:
| Expense Type | Monthly Cost Example (for 100-flat society) |
| Lift maintenance | ₹20,000 |
| Gardening & pest control | ₹15,000 |
| Security guards | ₹50,000 |
| Water pump electricity | ₹10,000 |
CAM Charges in Society: How They Differ from Other Fees
CAM charges in society aren’t the same as your regular maintenance or sinking fund. Mixing them up leads to billing confusion.
CAM Charges vs. Maintenance Fees vs. Sinking Fund
| Fee Type | Purpose | Paid To |
| CAM Charges | Common areas (lifts, lobbies) | Society for daily upkeep |
| Maintenance Fees | Individual flat repairs/utilities | Society/vendor directly |
| Sinking Fund | Major future repairs (e.g., roof) | Society reserve account |
Common Area Maintenance Charges- Rates and Tips to Reduce Them
Common area maintenance charges range from ₹2-8 per sq ft across India. Mumbai tops at ₹8+, while Tier-2 cities hover at ₹3.
Average CAM Charges in Indian Cities
- Bengaluru: ₹4-6/sq ft
- Mumbai: ₹6-8/sq ft
- Delhi-NCR: ₹3-5/sq ft
- Pune: ₹3-5/sq ft
Ways to Optimize and Challenge High CAM Charges
Cut costs without cutting corners:
- Switch to LED lights and solar pumps (save 20-30%).
- Bulk vendor deals for cleaning/security.
- Resident committees to audit CAM expenses examples.
Raise issues at society meetings for fair resolutions.
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.
Society Related Article:
| Housing Society Fund Utilisation |
| Franking Charge |
| Gated Community |
| Society Corpus Fund |
| Automatic Boom Barrier |
Why Choose NoBrokerHood for Effortless Society Management?
Tired of CAM disputes and manual billing? NoBrokerHood makes CAM charges management simple and transparent for societies and apartments.
NoBrokerHood app streamlines everything:
- Automated Billing and CAM Calculation: Instantly compute how to calculate common area maintenance charges per flat error-free.
- Expense Tracking Dashboard: Log CAM expenses examples like utilities with photo proofs and approvals.
- Vendor Management: Get 3 quotes for repairs/security to slash costs by 20%.
- Resident Portal: Owners view what is included in CAM charges, pay online, and chat queries, no more WhatsApp chaos.
- Compliance Tools: RERA-ready audits and AGM templates.
Switch to NoBrokerHood for hassle-free society management. Sign up free today and transform your billing!
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FAQs
Common Area Maintenance Charges are fees to maintain shared spaces like lobbies, lifts, and gardens in housing societies.
CAM in Society stands for Common Area Charges
Utilities, cleaning staff, security, repairs, gardening, and sinking fund contributions for common areas.
Total yearly expenses ÷ society area × your flat’s area share, divided by 12 for monthly billing.
Yes, required under RERA and bylaws; all owners pay proportionally for common area maintenance.
Optimize vendors, use energy-efficient upgrades, and audit expenses during society meetings.