How to Calculate Apartment Service Charge: Equal Split vs Per-Sqft
Apartment service charges in Bangladesh are calculated via two standard methods: Equal Split (every flat pays the identical fee regardless of floor size) or Per-Sqft Ratio (charges scale proportional to flat area). A sound budget aggregates security guards, cleaning, elevator servicing, common electricity, and adds 5–10% contingency for reserve emergency funds.
Key Takeaways at a Glance
1. Core Expense Categories in Apartment Service Charges
Roughly 70% of apartment operational spending goes toward guard salaries, elevator maintenance, and common electricity and water pumps.
When establishing monthly dues for a multi-tenant residential building in Dhaka or major cities, committees must categorize recurring overhead.
The standard ledger consists of non-negotiable operational items and preventive maintenance contracts:
- 24/7 Security guard wages, festival bonuses, and caretaker salaries
- Common corridor lighting, rooftop power, and backup generator fuel
- Monthly elevator servicing contract (AMC) and emergency spares
- Water lifting pump servicing and bi-annual water reservoir flushing
- Daily garbage collection charges and janitorial cleaning supplies
- CCTV system, building intercom, and gate motor maintenance
- Emergency sinking reserve fund for deep structural repairs or painting
2. Equal Split vs. Per-Sqft: Which Allocation Formula Is Best?
Use Equal Split if flats are within a 10–15% variance. Switch to Per-Sqft or a Hybrid formula if unit sizes diverge significantly.
Disagreements frequently surface between owners of 3-bedroom units and smaller 2-bedroom units regarding utility fairness.
Here is how the two primary pricing structures compare:
| Metric | Equal Split Method | Per-Sqft Method |
|---|---|---|
| Calculation Complexity | Extremely simple to compute | Requires area-weighted math |
| Perceived Equity | High if flats have similar square footage | Highly favored by smaller flat owners |
| Lift & Guard Service | Treated as equal common amenity | Charged proportionally to floor area |
| Best Suited For | Standard homogeneous buildings (12–24 flats) | Mixed-use, commercial, or varied apartment sizes |
Worked Example: Monthly Budget for an 18-Flat Building in Dhaka
An 18-unit residential building in Mirpur, Dhaka with identical 1,300 sqft apartments computes its monthly budget as follows:
| Expense Item | Total Outlay | Per Flat |
|---|---|---|
| 2 Security Guards + 1 Caretaker Salary | ৳৩৬,০০০ | ৳২,০০০ |
| Elevator AMC & Generator Fuel | ৳১৪,৪০০ | ৳৮০০ |
| Common Electricity & Water Pump Power | ৳১৮,০০০ | ৳১,০০০ |
| Garbage Removal & Janitorial Cleaning | ৳৫,৪০০ | ৳৩০০ |
| Emergency Sinking / Reserve Buffer (10%) | ৳৮,০০০ | ৳৪৪৫ |
Automated Service Charge Billing
Input your fixed and per-sqft parameters into BashaBill to generate automated monthly invoices with one tap.
Frequently Asked Questions
Does an empty or unoccupied flat have to pay service charge?
Yes. In Bangladesh, building security, lift maintenance contracts, and common area upkeep persist regardless of occupancy. Most associations require full payment or a discounted 70–80% rate excluding direct utilities like garbage collection.
Who is legally responsible for service charges: tenant or flat owner?
By rental lease convention, tenants pay the monthly service charge. However, in the eyes of the Flat Owners' Association, legal liability strictly rests on the apartment owner if rent or dues are defaulted.
How much money should an apartment association keep in its reserve fund?
Committees should set aside 5% to 10% of monthly collections into a dedicated association bank account designated solely for major capital repairs (elevator rewinding, building repainting, or pump replacement).
Verified guidelines curated with input from building committee treasurers, caretakers, and property developers across Dhaka, Bangladesh.
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