Service Charge Increase Notice: How to Announce It Without a Backlash

Salaries go up, electricity bills go up, the generator needs a new part — and sooner or later the committee has to raise the monthly service charge. Handled badly, this one notice can sour relations for a year. Handled well, most members accept it with little fuss. This guide walks through preparing and writing a service charge increase notice that people understand.

Start with the numbers, not the notice

Members will ask one question: "Why?" You need the answer ready before anything is announced.

1. List current monthly costs by category — staff salaries, common electricity, water, cleaning, lift maintenance, generator fuel, office costs.
2. List expected changes with reasons — a salary revision, a new maintenance contract, a bill increase.
3. Compare total expected cost with current collection. Remember that not every flat pays on time; base your plan on what you realistically collect, not just the billed amount.
4. Work out the new rate per flat or house, and how it compares to the old one.

Say an association of 120 flats bills ৳2,500 per flat and costs are expected to rise by ৳36,000 a month. That is ৳300 per flat, so the new charge would be ৳2,800. Showing this simple arithmetic is more convincing than any speech.

Look for alternatives first

Before increasing the charge, show members you checked other options:

• Can arrears be collected more effectively? Old dues are money already owed.
• Are any contracts renewable at a better rate?
• Can a large one-off repair be funded through a separate, one-time contribution instead of a permanent increase?

Mentioning these in the notice tells members the increase is a last resort, not the first idea.

Get the decision approved properly

Who can approve a change in the service charge depends on your constitution or by-laws — sometimes the executive committee, often the general meeting. Check yours and follow it exactly. An increase approved by the wrong body invites challenges later.

Tip: Record the decision in the meeting minutes with the old rate, new rate, start month and reasons. Refer to these minutes in your notice.

Writing the service charge increase notice

A good notice answers six questions: what changes, by how much, from when, why, who decided, and where to see details.

Sample notice

Subject: Revision of Monthly Service Charge Notice No. 14/2026 — Date: 25 November 2026

Dear Members, As approved at the General Meeting held on 20 November 2026, the monthly service charge will change from ৳2,500 to ৳2,800 per flat, effective from the January 2027 bill.

Why: security staff salaries have been revised and the common-area electricity bill has increased. Together these add around ৳36,000 to our monthly costs. A full cost breakdown is available at the office and on the association website.

What you need to do: nothing extra — the new amount will appear on your January bill. If you pay in advance, please contact the office to adjust.

For questions, please contact the Treasurer at the office (10am–6pm), 01XXXXXXXXX.

General Secretary, on behalf of the Committee

Sample SMS

Assoc. Office: As approved at the GM on 20 Nov, monthly service charge will be ৳2,800 per flat from Jan 2027 bill. Details on notice board and website. Thank you.

Timing and channels

Give members reasonable time before the new rate applies. A sudden increase on next week's bill feels like an ambush even when it is justified.

Handling the reaction

Some members will still object. That is normal.

• Answer questions with the breakdown, not with authority ("the committee decided").
• If someone genuinely cannot afford it, discuss it privately; your rules may allow a formal waiver or instalment arrangement approved by the committee.
• Keep the conversation off public messaging groups where possible — invite people to the office or the next meeting.
• After six months, report back: "Here is what the increase paid for."

For cooperatives that manage deposits, DPS and loans, see Somity Keeper; for a small somiti or savings circle, the simpler Somity Keeper Lite app keeps the books on your phone.

How Society Keeper helps

Society Keeper's monthly expense analysis and income and expenditure reports give you the cost breakdown to back up your notice. Once the new rate is approved, you change the charge rate and automatic monthly billing applies it from the month you choose, with no double billing. Any agreed waiver or discount needs a second person's approval, and the dues aging report shows how much old arrears could be recovered first. Explore more guides on our blog.