Service charges enable an owner to recover the costs of servicing and operating a property from the occupiers and others that 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 the aim is to entitle the owner to recover his charges and associated administrative costs incurred in the operational management of the property. This will include reasonable costs of maintenance, repair and replacement (usually where beyond economic repair) of the fabric, plant, equipment and materials necessary for the property’s operation plus any other works and services which the parties agree are to be provided by the owner and subject to reimbursement 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 that year once all works are completed. It is essential for the landlord to create a budget of expected costs and the tenants contribute towards the costs throughout the year with a final figure clarified in the year end accounts.
Apportioning between tenants:
One of the most common areas for dispute is the way the service charge is calculated between tenants and can often lead to unhappy tenants. It is important to first identify within the lease who is responsible and try and deal with the matter in hand.
Contact our Commercial department today to discuss your commercial service charge requirements on 0161 7733978.