The contribution or fee paid collectively by the owners of individual units for the maintenance and upkeep of the non-exclusive areas of the premises is called common area maintenance.

Definition: The contribution or fee paid collectively by the owners of individual units for the maintenance and upkeep of the non-exclusive areas of the premises is called common area maintenance.

Description: The common areas are the undivided parts of the commonly owned premises. The areas such as the parking lot, lawns, corridors, lobbies, elevators, etc are not owned by a single individual owner.

The responsibility for upkeep and maintenance of these areas is collective. The contributions made for the same are in the form of a stipulated fee to manage expenses for the management and repair of any damage to the same.

This amount contributed for operational expenditure on the common areas of the premises is called common areas maintenance. In the case of a leased property, the common area maintenance is calculated in the form of a load factor and is adjusted in the rent.