The Principles of Property Service Charges

Details

Category: Non-Rent Monies

In a property context, service charges help spread the cost of looking after any communal or shared building areas between those who use and benefit from those areas.

So, for example, a block of offices or apartments would typically have a shared staircase and lift for everyone in the building; there would be shared walls and structural elements. It may also have an external carpark and garden area.

These amenities must be maintained and serviced by the building owner or the management company. Although at first glance it may seem that the provision of these services is worth the tenants paying more rent for, the reality is that a completely separate service charge exists to cover these costs.

Moreover, this charge can vary...

Read more ...

Property Service Charges - Explained in 5 Steps

Details

Category: Non-Rent Monies

Here is a transcript of this quick video explanation of what a property service charges, with these slides available as PDF at Issuu if you click here:

CLICK HERE to immediately download a Fact Sheet summarising the 5 key factors to cost-effective service charges at any property interest.

Welcome to the Property Management Guide quick explanation of property service charges.

In short, property service charges are a way of having everyone pay towards shared costs for parts of a property that no single person is directly responsible, like stairs or lifts, the main walls and roof, and outside areas like the garden or carpark.

Of course, the buck for looking after these communal features stops with the main owner or landlord, and...

Read more ...

Service Charge Budgets at Properties Explained

Details

Category: Non-Rent Monies

In terms of what is a service charge budget at a property, then this is a way of predicting what the shared costs are between different tenants for maintaining and servicing the communal shared areas of a property that a landlord is responsible for.

Often completed every year, it is a plan of future expenditure divided between occupiers.

And in terms of a good example of a service charge budget, you can look at your monthly finances towards eating and food.

So, your monthly food budget might comprise regular supermarket shopping, one-off convenience store purchases, and restaurant and takeaway meals.

Of course, each month, of course, these actual costs do differ, both your total outlay and each element. It may be that the total stays...

Read more ...