Rent and service charges
Rent and service charges are to be paid monthly in advance on the 1st of each month by direct debit or standing order.
Rent is reviewed and rent increases applied every April, in line with Housing Corporation guidelines and our business plan. Our aim is to keep rents as low as possible
Service charges
We collect a service charge from you to cover the cost of providing all the services to the scheme where you live. The law defines the service charge as any amount which you must pay for services, repairs, maintenance, insurance and management costs. The charge depends on the cost of these items. Typical costs covered by the service charge are:- cleaning shared areas
- servicing and repairing the entry-phone system
- supplying electricity for lighting and power to shared areas
- maintaining the lift, if there is one
- grounds maintenance in shared areas
- servicing and maintaining the fire alarm
- reserve fund for cyclical maintenance
- buildings insurance
- management fees which include administration fees and paying for the services of professions, e.g. surveyors and architects.
How we collect and account for services charges
Your lease will tell you what your accounting period is and within six months of that accounting period you will receive a copy of the accounts.
The budget is set from April annually and you will be notified of any change in charges in advance of any such change.
We collect payments once a month over 12 months rather than levy an annual charge. This has the following benefits:
- you can spread the cost of the service charge instead of having to pay one large amount
- by charging from 1 April annually, it means that at least half the year's spending is real (October to April), so we only have to estimate the other half.
As soon as possible after the end of the accounting year, you will receive a statement of the actual costs related to the estimates we had made. After we have done this, we offer to hold a meeting to answer any queries you may have and also to present and consult on the scheme budget for the following year.
You will be given one month's notice prior to the introduction of the new charge. At the same time you will receive a copy of the audited accounts including information of the total in the reserve fund for future maintenance work (if collected).
Your lease and how it relates to the service charge is protected under landlord and tenant law, specifically the Landlord and Tenants Act 1985 and 1987, and the Commonhold Leasehold Reform Act 2002. For more information in respect of the legislation please contact your Neighbourhood Officer.