Benefits of Having Ledger in Unit Name in Housing Societies

In this post, we will highlight on the fact that how it is convenient to have the ledger for the member’s contribution mapped with unit name/number rather than the members’ name in the co-operative housing societies.

Before digging deeper, let me just run a refresher:

Ledger is a “book or other collection of financial accounts.” (Wikipedia)

In the context of housing societies, the ledger is the record of the monetary contributions given by the residents of the society as maintenance bills, and other ad hoc charges.

Now coming to the main point:

Societies maintain one ledger for members of the society residing in one unit. Generally, the ledger is created in the name of the member registered for a unit in society records.

Let’s consider an example, say Mr. H.T. Kulkarni resides in Unit no. 201 in ‘B’ wing of XYZ co-operative housing society. In this case, the ledger created will be in the name of Mr. H.T. Kulkarni.

You may ask, what’s the problem in it? After all, Mr. Kulkarni is one occupying the unit and responsible for paying the charges for that unit!

Yes, you are not wrong. Mr. Kulkarni will be paying up the bills and charges raised against that unit.

Now consider, that Mr. Kulkarni is selling off his property to Mr. J. Shitole. Therefore now Unit no. 201 in ‘B’ wing of XYZ co-operative housing society belongs to Mr. Shitole and not Mr. Kulkarni. So here comes, societies’ labor. Society needs to close the ledger of Mr. Kulkarni and start a new ledger for Mr. Shitole.

This situation and hassle could have been avoided if the ledger belongs to the unit no., may whoever is the owner at what point.

Now let’s go a notch higher. Consider that Mr. Kulkarni has vacated the unit on 1st March’ 2019 closing his ledger with the society by clearing if there is any outstanding. Mr. Shitole on other hand physically move the property on 1st May’ 2019 and society begins his ledger from then. Now there had been a renovation work that was supposed to be charged from the members done in between 1st March and 1st May. So on whose ledger this will go? Now considering that Mr. Kulkarni’s ledger is closed so you put them into Mr. Shitole’s ledger. What if he refuses to the amount that was coming from before the start of his ledger? It is messed up, isn’t it? Society comes in between this ugly situation and it hampers the congeniality of the society.

Again, the solution is having the ledger in the name of the unit. Now the entire things shift to in between the two owners, old and new. They will settle the matter depending on the sale date. Society need not create a new ledger, need not create a new invoice, and need not bother from whom the due needs to be recovered. The society shall continue sending the bill to the unit no. 201 of ‘B’ wing and receive the payment, may whoever pay it.

In CHSONE, our target is always to offer maximum relief from the manual labor. Hence, just by shifting the ledger name from member-based to unit-based, we have achieved relieving society admins of such unworthy situations and ensuring peace of mind while managing society.

To know more about CHSONE, request for your free demo now at your convenient place and time, just by going through the link and filling the simple form by clicking the green button at the right-hand side of the page.


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