Demystifying Your Apartment's Monthly Service Charge in Bangladesh

If you live in an apartment building in Bangladesh, you're familiar with the monthly "service charge." This is a crucial payment that keeps the building running smoothly, safely, and cleanly. However, it can often be a source of confusion. This tool is designed to bring transparency to the process, allowing both apartment owners and renters to calculate and verify how this charge is determined.

What is an Apartment Service Charge?

An apartment service charge is a fee collected from each flat owner or resident to cover the operational costs of the building's common areas and shared facilities. It is not a profit for the developer or landlord; it's a fund managed by the Apartment Owners' Association to pay for essential services that benefit everyone in the building.

How Are Service Charges Typically Calculated?

The most common and fair method for calculating the service charge is straightforward:

(Total Monthly Expenses) รท (Total Number of Apartments) = Service Charge per Apartment

While some buildings may charge based on the size (square footage) of the flat, the equal-sharing method is predominant in Bangladesh for its simplicity and fairness, as most common services are used equally by all residents.

Common Expenses Covered by Service Charges

The service charge fund is used to pay for a variety of recurring monthly costs. The most common expenses include:

  • Staff Salaries: Wages for security guards, caretakers, cleaners, and building managers.
  • Generator Costs: Diesel/gas for the generator, plus regular maintenance and repair costs.
  • Lift (Elevator) Maintenance: The annual maintenance contract (AMC) and repair costs for the building's lifts.
  • Utility Bills: The cost of electricity for common areas (lights, water pump, lift) and the common water bill from WASA.
  • Cleaning & Waste Management: The cost of cleaning supplies and fees for garbage disposal.

How to Use This Service Charge Calculator

  1. Enter the Total Number of Apartments: Count all the flats in your building that contribute to the service charge.
  2. Input Monthly Expenses: Gather the monthly bills and salary figures for all common expenses. If you don't have exact numbers, you can use the estimates provided by your building's association. Enter these in the respective fields.
  3. Calculate Your Share: Click the "Calculate Service Charge" button. The tool will sum up all expenses and divide them equally to show you the fair monthly charge per apartment.

Frequently Asked Questions (FAQ)

1. What is a typical service charge in Dhaka?

Service charges vary widely based on the location, size of the building, and amenities offered. A typical range could be from BDT 3,000 per month in a basic building to over BDT 15,000 in a luxury complex with features like a swimming pool and gym.

2. Who manages the service charge fund?

This fund is managed by the Apartment Owners' Association, which is an elected body of flat owners responsible for the building's upkeep. They should maintain transparent accounts of all income and expenditures.

3. Do I have to pay the service charge if my apartment is vacant?

Yes. The service charge is for the maintenance of the common property and the readiness of services. These costs are incurred whether an individual flat is occupied or not. Therefore, owners are typically required to pay the service charge even for vacant apartments.

Disclaimer

This calculator is an estimation tool to promote transparency. The actual service charge is set by your building's Apartment Owners' Association based on their specific, actual costs. This tool should be used for verification and informational purposes only.