Service charges? I don’t ask for them but should I?

Hibiscouscous

I am the freeholder of a building made up of four flats. I own two. The other two are leasehold.there is no ground rent.

I don’t ask for service charges because we split the building insurance in four (i pay half and they pay a quarter each, as i own two flats).

Any Maintanence that involves all flats we just split a quarter by flat as it comes.

Is that normal? Should I still be charging service charges?

Just want to make sure I'm doing the correct thing. I figured as we just assess each issue as and when it comes up and split it there is no need?

Luckily we have a good relation!

eddddy

Hibiscouscous said:

I don’t ask for service charges because we split the building insurance in four (i pay half and they pay a quarter each, as i own two flats).

Any Maintanence that involves all flats we just split a quarter by flat as it comes.

Is that normal? Should I still be charging service charges?

It sounds like you are charging service charges.

It sounds like the service charge you charge each flat comprises of:

• 25% of the buildings insurance premium
• 25% of maintenance costs

Maybe you're asking if you should also add a management fee to the service charge - to compensate you for the time you spend dealing with insurance and maintenance, plus any out-of-pocket expenses?

Or maybe you're asking if you should ask each leaseholder to pay an estimated service charge  at the start of each year. (i.e. an estimate of insurance and maintenance costs for the year ahead)?

Or are you asking something else?

Hibiscouscous

I think you’ve got it

I don’t need to charge for them for my time we tend to work together

i I think the way we’re doing it is good if okay!