Frequently Asked QuestionsRent & Service Charges

How do you work out the estimates & actual accounts?

By November 15, 2017 No Comments

We charge variable service charges. The service charge amount you are being charged is an estimation of costs that may be incurred in the next year to provide services where there are communal / shared areas in your block/building or estate (collectively known as a scheme).

The estimated charges cover the period from 1st April to 31st March each year; this will not be adjusted or changed during this period of time as it is only an estimation of the costs likely to be incurred for the year.

It is a statutory requirement that after the end of each financial year we analyse costs and calculate what it has actually cost us to provide these services to you and that we make an over or under payment adjustment to your account accordingly. We do this as an over or under weekly adjustment on your rent account during the subsequent financial year.

An example for tenants:

April: we estimated what the services would cost for the year from April-March. You pay weekly in advance of receiving the service.
September: we calculate how much the service actually cost us to provide.
April (following year): the difference between the estimated cost and the actual cost for the previous April-March will be reflected on your service charge statement and spread throughout that year.

There will be either a surplus (where the estimate was more than the actual) or a deficit (where the estimate was less than the actual) in the service charge for your property. The cost of providing these services usually increases each year.

The service charges are separate from rent and are charged in addition to it.