Service Charge Management Fees

orangeyred

I have recently moved into a new flat and have been given the service charge cost estimates for the building for the financial year. Some of the costs seem out of proportion so wondering if others can shed some light on what is reasonable. The building is 14 flats comprising 2 floors and managed by an agency on behalf of the leaseholder.

-Management fee - this constitutes almost 30% of the service charge and seems very high. Is this normal for a management company to charge (£5000+)?

-Window cleaning is £2000+ per year. There are 96 windows but are only cleaned every 6 months so would mean ~ £10 per window which also seems very high.

-There is a cost of £500 listed only as "Entryphone". Surely this isn't an annual cost?

-£1000+ fee for Health and Safety - is this normal?

Thanks for the insights - this is our first property so nothing to compare it to!

Sam

orangeyred

Yes that's annual for all flats!

The building has no outside areas, concierge, gym etc. so service charge definitely isn't being spent on those. I am in London but not Central. The management fee is the most expensive outgoing from the service charge and really doesn't seem a reasonable expense as it only covers very basic service.

The flats are all 1 bed, approx 500sqft and service is equally divided amongst the flats. I don't think the charge is much too high but I just don't like being ripped off!!!

chelseablue

When I lived in my 2 bed flat I paid £85 a month service charge


That was in Berkshire

westv

The windows are only cleaned every 6 months? That seems very poor to me. The flats where I used to live were cleaned monthly.

eddddy

Things like window cleaning should just be whatever the contractor charges.

If you can find a cheaper window cleaning contractor, tell the management company and see what they say.

The entryphone cost will be either the cost of leasing the system, or the cost of a maintenance contract.


If you think the service charges are too high, you can challenge them (but realistically, you would good evidence to support this - like quotes from other contractors).
See: http://www.lease-advice.org/faq/what-can-i-do-if-i-disagree-with-an-administration-charge/


Alternatively, if other leaseholders are also unhappy, you can club together and form a 'Right to Manage Company' and appoint a new management company.
See: http://www.lease-advice.org/advice-guide/right-to-manage/

glasgowdan

It does sound overly expensive, definitely. You may find the process of getting something done about it very frustrating though. I'd letter all the other flats and suggest the residents vote out the factor and replace with another. Try and get an email line of communication going between you all as it's easy for everyone to keep in touch that way.

cattie

You don't mention buildings insurance & this is very often part of the service charge.

Entryphone cost is likely towards an annual service contract or monies put aside for it's upkeep & repair.

Health & Safety could be costs towards checking things such as the water in the tanks, escape routes for tenants in event of fire or similar, or even checking for asbestos in communal flooring etc. (We have Marley floor tiles laid sometime in the '60's & they have been tested & found to contain some asbestos, so care to be taken should they ever be removed). However, I'd be inclined to query exactly what the Health & Safety payment is for.

I'd also query the window cleaning costs. Our communal windows are cleaned once a month when contractor comes to clean residents windows. Our communal areas are cleaned once a week. Not sure how much our management charge is, but 30% is incredibly high I feel.