greedy management company

kiwi07

Just received the service charge statement for the 2011:
Ground maintenance 2,029.88
Communal area cleaning 1,664.92
Window cleaning 756
Water 91.70
Electricity 2,839.80
Repairs, maintenance 2,829.09
Cyclical maintenance fund 1,750
Sinking fund 750
Accountancy & legal costs 278.25
Bank charges 159.82
Health, safety 150
Emergency cover provision 240
Insurance - Building& 4,125.07
Insurance - Directors 168
Management fees 5,493.60
Additional landscaping 2,552.62
total 25,878.75 percentage 4, 1667%

propertyman

You ask the agent to arrange a time when you can come in and inspect the invoices under section 22 of the Landlord and Tenant Act 1985

But hang on; you were paying £83 pcm against a total of £1078, that's £82 deficit not £100....

Does your lease allow the deficit to be recharged as one extra bill- just because the accounts show a deficit does not mean they can bill, only the lease says what and when you have to pay.

kiwi07

propertyman wrote: »

You ask the agent to arrange a time when you can come in and inspect the invoices under section 22 of the Landlord and Tenant Act 1985

But hang on; you were paying £83 pcm against a total of £1078, that's £82 deficit not £100....

Does your lease allow the deficit to be recharged as one extra bill- just because the accounts show a deficit does not mean they can bill, only the lease says what and when you have to pay.

I am paying £92 pcm and my share of the 2011 year deficit is £82.24 to be exact.

cottonhead

I pay £80 a month and the management company do virtaully nothing. We have no communal inside areas ( all have outside own front doors ) and have a tiny patch of grass which takes 5 mins to mow. The bins are emptied by the council and there is nothing that needs cleaning / repairing etc etc. The building insurance is included which is good but I dont feel we get value for money at all. Hoping to move soon. If you are all unhappy then get together and change management company.

kiwi07

Our management company put service charge up every year and now we pay £92,25 a month. 4 years ago we paid £75 so its almost 25% increase for the last 4 years. On the top of it every year we have balance deficit and they normally demand £100 from every flat. Few years ago they reduced some services, like hall cleaning on quarterly basis instead of doing it weekly. Today I received a letter of service charge accounts for year ended 31 December 2012 and its says "The accounts show an overall year end surplus totalling £1,026, the balance of which will be offset against a historic balance sheet deficit brought forward, leaving a reduced overall balance sheet deficit of £3,775 at the year end". Does it mean that £3,775 is the deficit we have to pay? £157.29 from every flat if divided for 24 flats. Its £250 in one go if paid together with service charge. No wonder why I see the Estate manager visiting the development in expensive cars because we subsidise their wages!! I think its day time robbery! Having balance deficit is became quite normal so as paying more for service charge. It's makes me sick!

propertyman

The £3775 would be shared by all the flats.

As advised almost a year ago have you looked at the old invoices from suppliers etc and considered challenging those costs?

The method of carrying forward a deficit in this way is correct in accounting terms but again as advised a year ago the lease may not allow them to collect it in this way- reducing current costs to meet old ones- and could well be unenforceable in say court proceedings.

if you are still unhappy the answers are the same as a year ago.... wot did you do

kiwi07

I just don't understand why do we have this deficit every year if they reduced some services and put service charge up!!! £160 for every flat is a hell a lot of money to pay on the top of the increased service charge. This management company virtually does nothing. I spoken to some other people from flats nearby and they only pay £60 a month which is more or less reasonable. Its seems that it just we have to put up with this total greed.
No I have not ask for the receipts but may be I should. No one else is bothered as we just have 2-3 owners and others are the tenants. We had an annual meeting and only few people turned up, spoken to them and they were no bothered as they don't reside here. The tenants pay their service charge. It is obvious that it takes more than one resident to change the management company.
Has anyone else tried to challenge their management companies service charges and what did you do?

RupertTheCat

I have several flats, management charges ranging from £55 pcm (1 bed) to £260 pcm (2 bed). Most of them are over £100. The charges usually increase by between 5-10% each year, and I fairly often have extra amounts to pay at the end of the financial year. Especially for the dratted £260 pcm one.

These are all flats in blocks, only one is in Scotland.

One of the properties changed management company recently and my service charge promptly went up 15% per annum, so changing company isn't always the solution!

kiwi07

fivetide wrote: »

The problem is these companies are generally unregulated and once they have their foot in the door are happy to cream it in for little work (all based on my experience)

A lot of flats will be let so while the landlord can pin the bill on the tennents (even though they should be paying for repairs) they don't argue and the only way to sack the agent is to get the majority of owners to form a residents association. since landlords won't do it, nothing happens.

5t

I was talking to the tenants from the flat below and they don't pay service charge. Service charge is paid by the landlord.

You mentioned about forming some form of resident association from the owners residents. Here is the problem as there are only 2 or 2 owners who actually live here. I made attempt to talk to one owner but he was not interested to talk about service charge at all. Looks like I trapped as no one else will be doing anything at all.

moromir

Why don't you ask companies for quotes based on your development and then see how this compares to what you're being charged?

Some or all may be applicable:

- Cleaning
- Window cleaning
- Changing lightbulbs in communal hallways
- Gardening
- Communal hallway electric
- Buildings insurance
- Accountants
- Parking enforcement (if you have a carpark/permit system?)
- Door entry system maintenance
- Periodic exterior redecoration
- Periodic interior redecoration (including carpeting or flooring, hand rails etc)
- Asbestos survey
- Periodic fire safety survey
- General handyman duties i.e. removing dumped rubbish, fixing the block entrance door hinges, relaying a wonky paving slab on the path etc etc
- Companies House fees
- Professional services i.e. another managing agent, solcitors if a leaseholder won't pay service charge, etc