Service Fee in New Builds: What You Pay For and How to Check—Checklist

What is a service fee and why it matters 🏢

A service fee covers the upkeep of shared areas and building systems: cleaning, security, technical maintenance, elevators, and common utilities. For buyers in newly built developments this recurring cost affects monthly budgets and the overall cost of ownership. Knowing what you're paying for prevents surprises.

Typical items included ✅

• Cleaning of lobbies and common corridors, waste removal.
• Maintenance of engineering systems (elevators, pumps, heating/ventilation equipment).
• Utilities for common areas: lighting, water supply for shared spaces.
• Security services and CCTV operation.
• Groundskeeping and outdoor lighting for the site.
• Administrative fees charged by the management company.

Items that should be separate or justified ⚠️

• Repairs inside individual apartments.
• Major capital works not agreed as part of the handover.
• Optional paid services (private parking, extra cleaning requests) — these should be clearly optional.

How to check the service fee before you buy — practical checklist 🔎

1. Ask for a written cost breakdown: a list of services with an illustrative budget or formula.
2. Clarify how the fee is calculated: fixed amount, per square metre, or by ownership share.
3. Find out who will manage the building: developer, management company or homeowners association, and request their documentation.
4. Request sample service contracts and sample payment receipts.
5. Ask about the frequency and grounds for tariff changes.
6. Get a clear list of standard services and any additional paid options with prices.
7. Learn where capital repair funds are held and how they are controlled.
8. If possible, review minutes of homeowners’ meetings or the rules for convening them.

Questions to ask during negotiations 🗣️

• Can the scope of services be fixed in the purchase contract?
• How is the fee allocation formula defined between units?
• Who handles complaints and how are service standards enforced?
• What is the process for transferring management from the developer to residents?

How to judge if the fee is reasonable — practical tips 💡

• Compare the service list with similar buildings in the area: similar services should have comparable costs per square metre or per share.
• Consider the infrastructure: onsite heating systems, round‑the‑clock security, or large landscaped areas typically raise costs.
• If a fee looks unusually low, check whether future major repairs or deferred maintenance might be hidden costs.

Red flags to watch for 🚩

• No written budgets or contracts showing what is paid for.
• Vague clauses allowing unilateral tariff increases by the manager.
• Ongoing unresolved complaints from residents about service quality.

Sample contract clauses you can request ✍️

• “The service fee covers the list of services attached and may be reviewed no more than once a year with prior notice to owners.”
• “Capital repair funds are held in a separate account and disbursed only by decisions made at homeowners’ meetings.”

Quick on‑the‑ground checklist before signing ✅

• Obtain the service budget and contract.
• Confirm calculation method and review periods.
• Verify the management company or association and request basic documents.
• Compare with comparable projects in the neighbourhood.
• Insist on recording key obligations in the sale contract.

If you’re considering a purchase and want us to review the service fee documents or prepare negotiation points, contact BuyHome. We can check contracts and help assess ongoing costs. Start by searching listings: https://buyhome.ge/en/search

Contact BuyHome — we’ll help you choose and verify the property without unpleasant surprises.