Service charge accounts

We offer a service charge accounts service and work closely with landlords, letting agents and tenants.

Service charge accounts are financial statements that detail the income and expenditure related to the management and maintenance of a property or properties within a development. They are typically used in multi-occupancy buildings such as apartment complexes, office buildings, or shopping centres where the costs of maintaining common areas and providing services are shared among the tenants or property owners.

Service charge accounts typically include:

Income: Contributions from tenants or property owners, interest earned on reserve funds, and any other income related to the property.

Expenditure: Costs incurred for property maintenance, repairs, insurance, utilities, management fees, and other services provided to the property.

Reserve Funds: Amounts set aside for future major repairs or unexpected expenses.

Balances: Opening and closing balances of the service charge fund.

Service charge accounts are used for:

Providing transparency: Tenants or property owners have the right to know how their service charges are being spent.

Budgeting: Helps in planning future expenditure and setting service charge levels.

Legal compliance: Ensures compliance with legal requirements and lease agreements.

Dispute resolution: Provides a basis for resolving disputes related to service charges.

Service charge accounts are typically produced annually, although the frequency may vary depending on legal requirements and the terms of lease agreements.