Management service charges for ex local authority property

helptheden

Hi,
I have a quick question regarding service charges for an ex council authority property that I own and rent out.

The local authority has recently made changes to how they calculate the management charges. They have made these changes to be fairer and more transparent. The old way of calculating charges was to charge 28% on the total service charge bill for the year to cover management charges. They have now moved to a flat rate management charging system. Having looked at my service charge estimates for next year, I have worked out that the new fairer way of calculating management charges has resulted in management charges increasing by 20%. The management costs for this year equate to 48% of the total service charge invoice.. I have asked for further information as to how this flat rate is calculated as all I can conclude at the moment is that they have increased the cost of management by 20%.

They have also provided a breakdown of the management cost. When looking through this, I noticed that the management cost includes a cost for dealing with antisocial behaviour. I was quite surprised by this as the way I see it is that it is possible that the local authority could place someone into a property who may be anti social to other tenants, the local authority would then have to deal with this and charge the well behaved tenants/owners of ex authority properties for this service? This does not seem right to me? I would have thought that this sort of thing would have to be funded through the government ie via council tax? Under normal circumstances, would a complaining home owner expect to be charged by the council for dealing with reported anti social behaviour?

Thanks in advance

theartfullodger

It could of course be the home owner (or his tenant) who is behaving anti-socially.

I'm sure you weren't suggesting only Council House tenants behave anti-socially.

You're not in Scotland are you (law is different)

Cheers!

Lodger

helptheden

In answer to your question, I do not live in Scotland - I did not mean for my post to suggest that only Council House tenants behave anti-socially - Sorry.

What I was trying to say is can the local authority claim management charges for dealing with any anti social behavour? I find it strange that they are charging for this type of service. I assumed that this type of service would be funded by council tax/government? How would local authorites claw back there costs for this type of service for properties not managed by the council (I assume that they do not only deal with antic social behaviour for properties that they own/manage?, i thought that they have responsibility for providing these services for all in there borough?

ad44downey

Ex-local authority buyers always get shafted by the council. They're an easy touch. Just wait until they send you a grossly inflated repairs bill.

theartfullodger

I take it you have read all the documents you were given when you bought and they don't mention the charges ?? (!)

I have an ex-council (err.. Scottish, actually ex-Scottish Homes but ignore that detail..) and the deeds make mention of such management charges being levied..

If there is nothing in what you agreed to about such charges tell 'em to stuff it... but I kinda suspect there will be something..

Good luck whatever!

Lodger

helptheden

Thanks for the replies..

I've heard about some of the storys regarding service charges...Luckily, I have not experienced too much major work with the property I own...

The property was bought around 8 years ago, I have not looked through the leaseholder agreement/deeds recently, however I'd be surprised if it included any reference to anti social behaviour, don't think that the deeds provided a low level breakdown of what constitutes management charges, I expect it to be high level stuff (they have only just started to provide a breakdown of what the management costs include within the invoice)...

I will check, it just seems a strange service to charge for as it seems that well behaved tennants/owners could be financially penalised for having bad neighbours!!

silvercar

Could be to deal with anti-social behaviour in the area, rather than from occupants. Maybe there is a general problem with louts hanging around the area disturbing all the residents.

Pssst

Surely anti social behaviour outside the property falls within the remit of the Police farce and has therefore already been charged for under your council tax?

Wait till they decide to mend the roof or do other structural work and you cop your share of that as well.

helptheden

I think they make it up as they go along.....

I've sent them an email asking for clarification as to why there is a charge for dealing with anti social behaviour and questioning whether they have the right to do this...I will wait to see what they say....