Service Charges Explained
Your service charge is the money you pay towards the day-to-day running costs of your development. Every resident pays a service charge and the money is used to cover items such as maintenance, repairs, gardening and communal facilities.
All of the services are recharged to you at actual cost. We collect funds from you via a monthly service charge. The service charge is set to the appropriate level to ensure that there are sufficient funds to cover the cost of the work. From these funds we pay the contractor on your behalf.
Following the end of the development's financial year the annual accounts are prepared. A statement is sent to every owner and the accounts will be fully explained.
There is often an adjustment to the service charge after the year end as it is unlikely that our budgeted estimate will equal the amount expended during the year.
This adjustment can be a credit if we overestimate or a debit if we underestimate. If we underestimate, an invoice will be sent to you for the balance due. If we overestimate, the adjustment will then be credited to your account and can reduce future invoices.
To cover the cost of managing the services, a flat rate annual management fee is applied to your service charge account. The level of the fee depends on the number of core services provided to you.
What does the management fee cover?
- Annual account review
- Preparation and issue of annual service charge budget
- Management of your service charge account
- The preparation and issuing of invoices and statements throughout the year
- Customer liaison to manage service enquiries
- Production and distribution of correspondence and information to customers
- Site inspections and visits
- Arranging tenders for maintenance and repair work to be carried out
- Utility supplier liaison
- Contract management
- Customer service support overheads
- Regulatory Compliance with Health and Safety & industry codes of best practice
Property Factor Registration: PF000712