How to Calculate Apartment Service Charges in Bangladesh: A Guide for Owners' Associations
Service charges cause more arguments at committee meetings than anything else: what goes in, how it is split, and where the money went. A clear rule and open accounts settle most of them.
What a service charge usually covers
A service charge is the building's shared cost — spending that belongs to everyone, not to one flat. It usually covers:
- ✓Staff salaries — guards, the caretaker, cleaners.
- ✓Lift and generator — maintenance, fuel, small repairs.
- ✓Common-area electricity and water — stairs, roof, garage, the pump.
- ✓Cleaning and small repairs — bulbs, pipes, touch-up paint.
- ✓Security — costs such as cameras or gate locks.
Big jobs — replacing the lift, repainting the whole building — are better kept out of the monthly charge and paid from a separate fund. More on that below.
Three common ways to split it
| Method | How | When it fits |
|---|---|---|
| Equal shares | Total cost ÷ number of flats | When the flats are about the same size |
| By area | Total cost ÷ total sq ft × the flat's sq ft | When flat sizes differ a lot |
| By flat type | A set rate for small, medium and large flats | With a few flat types, to keep it simple |
Decide the method at the association's general meeting and write it down. A written rule means no fresh argument every time an owner or tenant changes.
A worked example
Take a building with 20 flats and 24,000 sq ft in all. The monthly shared costs are staff salaries of 30,000 taka, lift and generator 12,000 taka, common electricity and water 10,000 taka, and cleaning and repairs 8,000 taka — 60,000 taka in total.
| Flat | Equal shares | By area (2.5 taka per sq ft) |
|---|---|---|
| 800 sq ft | 3,000 taka | 2,000 taka |
| 1,200 sq ft | 3,000 taka | 3,000 taka |
| 1,600 sq ft | 3,000 taka | 4,000 taka |
With equal shares the small flats pay more; by area the large flats do. Either can be fair — what matters is that everyone knows in advance which rule applies.
A reserve fund for the big costs
When a lift has to be replaced or the building repainted, raising a large sum at once is when the objections start. Collecting a small contribution into a separate fund every month avoids that.
Keep these contributions apart from the monthly service charge, in their own record, so it is always clear who has paid in and who has not.
Open accounts: everyone sees the same numbers
At the end of each month, share a short statement: how much service charge came in, what was spent and on what, who still owes, and what is in the fund. Open accounts mean less suspicion, and nothing is lost when a new committee takes over.
Running the association's accounts in MyBasha
For the whole picture, read what apartment management software is. For an association, it comes down to this:
- 1Service charge on the monthly bill. Every flat is billed together on the 1st.
- 2Who paid and who owes, at a glance. The app reminds anyone who has not paid.
- 3Record the expenses. Electricity, repairs, salaries — what came in and what went out each month.
- 4Fund contributions kept apart. Who has paid into the committee fund and who has not (on the Paid plan), with the committee's members.
Your association's accounts in one place.
Free forever for 1 building and up to 5 flats; contributions, committee and staff come with the Paid plan.
Questions and answers
What is the best way to split a service charge?
There is no single right answer. If the flats are about the same size, equal shares are simplest; if sizes differ a lot, splitting by area usually feels fairer. Decide at the general meeting and write it down.
Who pays the service charge on an empty flat?
Usually the flat's owner, since the shared costs run whether the flat is let or not. Put it in the association's rules.
Does the tenant or the owner pay the service charge?
That is for the owner and tenant to agree. Write it clearly into the rental agreement and there is nothing to argue about later.
Is MyBasha suitable for a flat owners' association?
Yes. The service charge goes on the monthly bill and expenses are recorded, and on the Paid plan the committee fund, committee members and staff are all in one place.
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