Service Charge
Service charge management for single and multi-let buildings.
Service charges enable an owner to recover the costs of servicing and operating a property from the occupiers and others who benefit from and use the services and facilities provided.
We offer service charge management to both single and multi-let buildings, including calculating the expenses, invoicing to tenants and collection of payments.
What is included?
The service charge arrangement is set down in the lease(s) and aims to entitle the owner to recover their charges and associated administrative costs in operational management. This includes reasonable costs of maintenance, repair and replacement of fabric, plant, equipment and materials necessary for the property's operation — plus any other works the parties agree are to be provided by the owner and reimbursed by the occupier.
Creating a budget
At the beginning of a service charge year a figure can neither be accurately calculated nor due until the end of the year once all works are completed. It is essential for the landlord to create a budget of expected costs, with tenants contributing throughout the year and a final figure clarified in the year-end accounts.
Apportioning between tenants
One of the most common areas for dispute is how service charge is calculated between tenants — it can often lead to unhappy tenants. It's important to first identify within the lease who is responsible and deal with the matter in hand.