The Hidden Costs of Upfront Maintenance: A Middle-Class Housing Trap
Many Indian homebuyers are discovering a hidden trap when they pay four years of maintenance upfront, only to be billed again after a short period. This article explores the issue and provides insights from a wealth advisor.
Real EstateMaintenance FeesHomebuyersHousing TrapMiddle ClassReal Estate NewsJul 11, 2025
You pay four years of maintenance upfront thinking you’re covered. Two years in, an app pings: “Maintenance due. Pay now.” That’s the dilemma Sujith SS, founder of Moneydhan.com, spotlighted in a LinkedIn post, and it's a reality many Indian homebuyers are waking up to.
In the post, Sujith introduces “Rajeev,” a working-class Mumbaikar who finally booked his dream home in a large-scale township project. Like thousands of others, Rajeev was asked to pay four years of maintenance in advance, between ₹5 to ₹10 per square foot. He paid without protest, thinking, “At least no monthly hassle.”
But just two years after moving in, Rajeev received a notification on the MyGate app: “Maintenance due. Please pay immediately.”
Puzzled, he approached the society office — only to be told there were no records of his payment. “The builder handed over the society with zero maintenance data,” they said. According to their system, his balance was zero.
When he contacted the builder, the answer was worse: “Sir, we’ve handed over everything to the society. We don’t have access anymore.”
Rajeev was stuck. The builder claimed the four-year count began the moment the fee was collected — not from the date of possession. In effect, buyers were losing months, even years, of paid maintenance time before they even got their keys.
Sujith’s post breaks this down with numbers. If each flat owner paid ₹1 lakh in advance and a single tower had 100 flats, that’s ₹1 crore in builder-held funds. Across 10 towers, that’s ₹10 crore — collected, unaccounted for, and now disconnected from the homeowners who paid it.
When residents tried to protest peacefully, police told them they had no permission. “Go through official channels,” they were told.
“Don’t trust what the builder says at face value. Builders show one thing, sell something else, and reality turns out very different.”
For India’s homebuyers, it's a reminder that even after paying in full, the fine print — or lack of it — can still cost you.
Frequently Asked Questions
What is the hidden trap in paying maintenance fees upfront?
The hidden trap is that homebuyers are often billed for maintenance again after a short period, even though they have already paid several years upfront. This can happen because the builder's records do not align with the date of possession.
How much money can builders collect from upfront maintenance fees?
If each flat owner pays ₹1 lakh in advance and a single tower has 100 flats, builders can collect ₹1 crore per tower. Across 10 towers, this amounts to ₹10 crore.
What should homebuyers do if they are billed for maintenance they have already paid for?
Homebuyers should first check their records and then approach the society office and the builder for clarification. If this does not resolve the issue, they should consider legal options or official channels.
Why do builders claim that the four-year maintenance period starts from the date of payment?
Builders may claim this to avoid accountability and to ensure they do not have to refund the maintenance fees. This can result in homebuyers losing months or years of paid maintenance time.
What is the main advice from the wealth advisor regarding builders?
The main advice is not to trust what the builder says at face value. Builders may show one thing and sell something else, and the reality can turn out very different.
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