Why Commercial Use of Residential Flats Is Expensive: Things to Know

Posted by Prashant Saini on August 6th, 2017

Are you someone who is in business and wants to utilize a residential flat for commercial purposes? Think twice. There are probably a lot of things that you still need to know about commercializing a residential flat in Gurgaon.

Several working class people and entrepreneurs buy 4 BHK flats in Gurgaon and put them in to commercial use. However, it is not known by many that full-scale commercial use of residential flats is considered to be illegal.

Housing societies in the area usually do not support the idea of using the residential plots for commercial purposes. These may include storing goods or renting the apartment to people, financial transactions, etc. It is therefore advised to all the people who wish to utilize their residential plots to cut cost or start a business to stop and think for a while before doing so.

You might want to check into the legal aspects before using your residential area for commercial use. After all, the safety and security of your business as well as a residential area is all that should matter. The decisions in the matter should be taken wisely and only after a full-fledged research on the terms and conditions, residential space should be considered for commercial use.  

Take your real estate decisions smartly and remember these points…

• There is a certain limit to the extent up to which you can use your residential area for commercial purposes. As stated by the law, the residential services permit up to 20% usage of your residential area for commercial commitments.

• However, this permission for using the residential space is granted only in the cases of specific business categories such as nursing homes, operating banks and building dispensaries.

• It's essential to procure all the legal documents that are necessary for the procedure of converting a part of your residential space for a certain business. Make sure to get proper shop and business establishment license from the municipal authoritiy of the area under consideration.

• The interior space of the residential space is too a matter of great concern. It is advised to check into 4 BHK flats for sale in Gurgaon, to get a proper spacious residential plot, a part of which can be converted for commercial use later.

• There are certain commercial charges – water, electricity and property tax – which are applicable once you buy a residential plot. These charges usually depend on the property size and rates in the area.

• It has been stated that the property tax of a residential plot is doubled once you start using it for commercial purposes. For instance, if the property tax on a residential flat is Rs.5000, by converting a part of it would mean that the property tax is increased up to Rs.10,000.

• These rates are mostly decided by the housing societies of any particular area and are put under the charges of maintenance and other extra costs, depending on the area type.

To sum up, it is the society members that decide how much do you have to pay for a flat. So before you go out looking for 4 BHK apartments in Gurgaon, it is suggested that you have a word with the society members first and keep the points mentioned above in mind.