At Bawtrys Block & Estate Management, we frequently engage with leaseholders curious or sometimes concerned about the service charges they incur. These charges often cover managing communal areas, such as landscaping, electricity for common areas, and concierge services, but can also extend to amenities such as swimming pools or gyms.
Understanding these costs and addressing concerns is crucial for maintaining a transparent relationship between leaseholders and management.
Service charges are fundamentally tied to the lease agreement, which grants a long-term right to occupy with specific conditions, including the obligation to contribute to these communal expenses. These costs are typically based on the leaseholder's share of the building costs, determined by size or a lease apportionment.
However, the obligation to pay does not mean leaseholders have no recourse if they find these charges unreasonable. Managing agents, like ourselves, are tasked with ensuring that all costs are justified and allow leaseholders to challenge them if they seem excessive.
This is especially pertinent when major works, such as roof repairs or lift maintenance, exceed £250 per flat, triggering a Section 20 process that requires detailed consultation with leaseholders, including multiple work estimates and a review period for feedback.
It’s essential for leaseholders to regularly review their service charges and consult their leases to verify their obligations.
At Bawtrys, we encourage this scrutiny because we are committed to transparency in all our dealings. Our approach aligns closely with our partners at Rocket, who also prioritise transparent and fair service charge assessments for their landlords.
Rocket, a trusted partner, has been instrumental in advising its clients on the intricacies of service charges, ensuring landlords understand their responsibilities and rights. Together, we strive to ensure that all charges are transparent and reasonable.
We also address potential conflicts of interest, such as block management companies receiving commissions from contractors or insurance brokers, which can inflate service charges. Our commitment is to prioritise the interests of our clients over any potential gains from such arrangements.
Our core values of transparency and direct communication guide our management practices. We manage everything from maintenance obligations to compliance with fire safety regulations, directly interacting with leaseholders rather than through impersonal call centres.
Our process is governed by the RICS code of conduct, which mandates that service charges must reflect the reasonable service cost. We proactively obtain multiple quotes to ensure competitive pricing and prevent any unreasonable financial burden on leaseholders, giving you financial peace of mind.
If issues arise, leaseholders can utilise our comprehensive complaints procedure, and we aim to resolve any disputes amicably. We are committed to listening to your concerns and finding a fair resolution. Should disagreements escalate, leaseholders can take their cases to a first-tier tribunal to seek a fair resolution.
Our commitment to detailed, quarterly financial reporting lets our clients see precisely where their money goes, ensuring clarity and fostering trust. In cases where significant expenditures are necessary, we consult thoroughly with leaseholders to discuss the details and implications of the proposed spending.
By adhering strictly to industry best practices and maintaining open lines of communication, we comply with regulations and build harmonious relationships that benefit all parties involved - freeholders, management companies, and leaseholders alike.
Our partnership with Rocket has strengthened our ability to serve our clients effectively, aligning our expertise in block management with their robust property management services. Together, we ensure that managing your property investment is as transparent and hassle-free as possible.
For more information on what Rocket Offer, you can visit their website by clicking here.
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