In most apartment communities, maintenance collections are the main source of income. But with costs going up year after year, many Management Committees are starting to feel the pressure. Increasing maintenance is not always an easy option, as it often leads to disagreements among residents.
To discuss how associations can handle this better, ADDA recently conducted a workshop on revenue generation for RWAs and MC members. The session was led by San Banerjee, CEO & Co-Founder of ADDA, and saw participation from committee members and treasurers from 100+ communities from across the country.
The workshop was initially planned for 100 participants, but due to the high number of registrations, the capacity had to be increased. The session included a walkthrough of practical approaches followed by an open discussion where participants shared their own experiences and challenges.
This blog shares a brief overview of the session, followed by the questions that came up during the discussion.
Table of Contents
Why This Topic Is Coming Up More Often
Apartment communities today are managing more responsibilities than before. Expenses related to maintenance, services, and vendors keep increasing, while residents expect better facilities and smoother operations.
Because of this, many associations are now exploring ways to generate some additional income instead of depending only on maintenance collections. In many cases, the focus is also shifting towards better use of existing resources within the community.
Another point that came up during the discussion was around advertising inside community apps. In the past, some communities earned small amounts through ads shown within apps, usually shared as commission. However, this approach has always raised concerns around privacy. With the DPDP Act now in place, showing ads inside community apps without clear consent from residents is no longer allowed. Because of this, many associations are now actively looking at other, more transparent ways to generate revenue.
What Was Discussed in the Workshop
The session touched upon different ways communities can think about revenue generation, including options from outside the community, within the community, and through services. A few examples were also briefly discussed to help participants understand how these ideas are being tried in other communities.
Some of the commonly discussed options included:
- Use of common areas like clubhouses or halls for paid bookings
- Allowing coaches or trainers to conduct sessions within the community
- Brand promotions or sponsorship setups during events
- Charging for certain inside apartment services within the society
It was also discussed that not every approach works for every community. What works depends on factors like size, facilities, and resident preferences. The idea is to start with what is practical rather than trying to implement everything at once.
Challenges That MC/RWA Members Shared
Participants also spoke about the difficulties they face, such as:
- Residents questioning additional charges
- Lack of clarity on how to introduce new methods of revenue generation, and how to get residents to agree to them
Some members also shared that even when ideas are available, getting agreement within the community takes time and effort. These decisions often need discussion and alignment among residents.
Closing Thoughts
Revenue generation is something many communities are starting to think about, but it often feels unclear where to begin. There is no single approach that works for everyone.
Each association needs to look at what fits their setup, discuss it openly, and take small steps that residents are comfortable with.
Before getting into the questions, one thing was clear from the session. Most communities are already aware that they need to look beyond maintenance collections, but the challenge lies in figuring out what will actually work for them and how to get residents on board.
Questions Raised During the Session
Below are the questions that came up during the workshop, along with responses shared during the discussion.
1. How can associations promote brands on the community app?
Associations can use features like announcements or banner placements within the app to promote brands. However, this needs to be done carefully. Residents should have the option to opt out of promotional communication, and any such activity should be transparent and consent-based.
2. Are additional revenue streams taxable?
Tax treatment depends on the type of income being generated. For example, income from services, rentals, or sponsorships may be treated differently. Since this can vary, associations should always check with their auditor or tax consultant before implementing new revenue streams.
3. Is the revenue generation module enabled by default?
No, it is not enabled by default. Associations usually need to activate it and set up their preferences based on what kind of revenue streams they want to manage.
4. How can associations estimate potential revenue?
Some tools and calculators, for example the “revenue estimator” inside the Revgen Module inside ADDA, can give a rough estimate based on the size of the community and the type of activities planned. However, actual revenue will depend on participation, demand, and how consistently these initiatives are managed.
5. What is the correct way to charge coaches and trainers?
Instead of taking a percentage from what they earn, it is usually simpler and more transparent to charge a fixed fee for using the space. This avoids confusion and makes it easier to manage.
6. Why do residents resist additional charges?
Many residents feel that maintenance payments should already cover most services. If new charges are introduced without proper explanation, they can lead to resistance. Clear communication about what is included in maintenance and what is not becomes important.
7. Can smaller communities also generate revenue?
Yes, but the approach may be different. Smaller communities may not attract large external brands, but they can still explore smaller, practical options based on their facilities and resident needs.
8. What are the easiest revenue options to start with?
Service-based options are usually easier because they are directly linked to usage. For example, paid bookings or service charges are easier for residents to understand compared to more complex models.
9. How can associations manage inside apartment service requests in an organized way?
Having a clear system helps. This includes defining what all services can be provided by the community staff like plumbers and electricians, setting charges for each service in advance which is transparently visible, and having a proper way to track requests and approvals instead of handling things informally.10. 10. What are the main challenges in implementing these ideas?
Most challenges are not about the ideas themselves, but about execution. Getting residents to agree, managing processes smoothly, and ensuring fairness are the main areas where associations face difficulty.