If you own a flat in a cooperative housing society but don’t live in it and instead rent it out, you might have to pay something called Non-Occupancy Charges (NOC).
But what exactly are these charges? Why do societies levy them? And is there a limit to how much they can charge?
Let’s break it down in simple terms so you can understand your rights and responsibilities as a homeowner.
What Are Non-Occupancy Charges?
When you own a flat but don’t live in it and instead give it on rent, the housing society may charge you a small extra fee, called a non-occupancy charge.
👉 This charge is collected because the society assumes that rented flats use more resources (like security, maintenance, and common amenities) compared to owner-occupied flats.
Is It Mandatory to Pay Non-Occupancy Charges?
Yes, if your housing society’s bye-laws mention it, then you’re legally required to pay this charge when you rent out your flat. However, if you’ve given the flat to your close family members (parents, children, siblings), then most societies don’t charge this fee.
📌 Important: If your society is demanding a very high non-occupancy charge, you can challenge it legally under the rules set by the housing authorities.
How Much Non-Occupancy Charge Can a Society Take?
Good news! Societies cannot charge whatever they want. The Maharashtra Cooperative Societies Act, 1960, has set clear rules:
✔ The maximum non-occupancy charge can only be 10% of the service charges (maintenance fee) paid by members.
✔ No society can increase this percentage without proper approval.
✔ This rule is followed in most Indian states, though charges may vary slightly based on local laws.
💡 Example Calculation:
- If your monthly maintenance charge is ₹3,000, then your maximum non-occupancy charge can only be ₹300 per month (10% of ₹3,000).
🚨 Beware of Overcharging: Some societies try to charge more than 10%, but this is illegal. If you feel you’re being overcharged, you can file a complaint with the cooperative housing authority.
Who Is Exempt from Paying Non-Occupancy Charges?
There are a few exceptions where you don’t have to pay this fee:
✔ If you’re giving your flat to close relatives (parents, children, siblings, grandparents, or legal heirs).
✔ If your society’s bye-laws don’t mention non-occupancy charges.
✔ If you’re an original member of the society and the flat has never been transferred.
So, if your tenant is a family member, your society cannot ask for non-occupancy charges.
Can a Society Refuse to Allow You to Rent Out Your Flat?
No, a cooperative housing society cannot stop you from renting out your flat, as long as you follow the required legal formalities:
✔ Inform the society in writing before renting out the flat.
✔ Submit a copy of the rental agreement.
✔ Provide tenant details to the local police station (as per city laws).
Once you complete these steps, your society cannot deny permission or charge you unfairly.
What to Do If Your Society Charges More Than Allowed?
If your housing society is demanding more than 10% of your service charges as a non-occupancy fee, here’s what you can do:
✅ Step 1: Request a written explanation from the society regarding the extra charges.
✅ Step 2: If they don’t respond, file a complaint with the Registrar of Cooperative Societies in your state.
✅ Step 3: You can also take legal action with the Consumer Forum if the charges are unfair.
💡 Pro Tip: Always keep a record of all maintenance receipts and payment proofs so you can challenge any unfair charges easily.
Final Thoughts: Be Aware of Your Rights!
If you rent out your flat, you’ll likely have to pay non-occupancy charges, but these should not exceed 10% of your service charges. Many homeowners unknowingly pay extra fees, assuming it’s mandatory—when in reality, societies cannot overcharge beyond the legal limit.
📌 Bottom Line: Be informed, ask for proper documentation, and don’t hesitate to raise a complaint if your society demands more than what’s legally allowed!
💬 Need Help Renting Out Your Property?
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