Service charge for flat - who pays it?

londonman81

I'm considering purchasing a flat and renting it out.

However, there is a service charge associated with the flat and I'd like to know who usually picks up this bill. Is it usually payable by the tenant as a separately listed amount (like utility bills, council tax etc), or is it the landlord who pays it (i.e. landlord does not pass this cost on to the tenant)?

Thanks

[Deleted User]

Our landlord pays ours.

I've been in several rented properties over the years, and never paid this. Always paid by the landlord (although I am sure it is accounted for in the rent!).

emg

Agree, the landlord pays. Essentially the service charge is for the insurance, upkeep and maintenance of the building which is the responsibility of the owner not the tenant.

Werdnal

I am landlord of a leasehold property and the ground rent, service charges and any additional maintenance bills from the freeholder are my responsibility. You can obviously "pass this cost on to the tenant" by factoring it into the rent you charge.

Have you checked the lease of the property to make sure you are allowed to let it? Some insist on owner-occupier only, or request an additional fee to allow you to let.

ognum

As a landlord I also pay this, mine are charged twice yearly. You need to account for this in your buisness plan. Before deciding what to buy it is important to know all these costs as well as the length of the lease as extending this is another cost you should consider.

Kynthia

I'm fairly sure that this bill cannot be transferred to a tenant, only the flat owner. However when you decide what rent to set you should factor in all bills and expenses to running your property business, such as the service charge, in order to make a profit. Although your rent also must be competitive or no-one will rent your property.