It's common for freehold property owners to charge leaseholders and tenants a service charge. This transaction is typically handled by a local residential block management company.
But many homeowners or landlords are left unsure of precisely what service charges are for and why they need to be paid. This can lead to frustration, particularly because the benefits of service charges aren't always visible. And since these feelings are often directed at you as the freeholder, it helps to have a clear knowledge and understanding of their value.
In this short article, you'll find a simple overview of what service charges cover, how they're paid, and why they're important for good property management.
What are service charges for?
The money paid as a service charge doesn't just go into the freeholder's pocket. It's actually reinvested in the block or property, and pays for a wide range of communal services. These can include:
Buildings insurance.
Maintenance, repair, servicing and cleaning of communal areas.
Gardening and interior decorating.
Communal electricity, water and TV systems.
Upkeep of communal heating systems.
Service charges also pay for necessary administration, such as:
Residential property management services.
Accountancy and bookkeeping.
Liability insurance.
Surveyors.
Legal advice.
How are service charges paid?
There are two main types of service charge:
Variable service charges: the amount owed is based on the actual costs incurred in a particular year. Fixed service charges: property owners pay a fixed amount for the duration of their lease agreement.
These are generally paid monthly, quarterly, bi-annually or annually depending on the terms of your agreement.
The precise value of a block or property's service charges depends on the size of the property and the attention it requires. However, leaseholders who sublet can pass these charges on to their tenant as part of their rent. In this case, landlords benefit from the resulting services at no cost to themselves.
Why use local block management services for service charges?
Managing a block or property isn’t as simple as collecting money and applying a new coat of paint. It requires a detailed knowledge of landlord, tenant and property law, as well as a professional attitude to keep residents satisfied.
Using local block management services removes the weight of this complex and time-consuming task. Rather than constantly juggle the needs of multiple leaseholders and tenants, you can relax knowing the job is in capable and professional hands. Residential property management companies also ensure service charges are collected and enforced as per the terms of your contract.
At Plymouth Block Management, we offer comprehensive residential and commercial block management services to suit properties of any size. We're an accredited member of the Association of Residential Managing Agents (ARMA), and provide 24-hour on-demand property management services of the highest quality.
Contact us today to discuss your needs for local block management service in Plymouth.
It's common for freehold property owners to charge leaseholders and tenants a service charge. This transaction is typically handled by a local residential block management company.
But many homeowners or landlords are left unsure of precisely what service charges are for and why they need to be paid. This can lead to frustration, particularly because the benefits of service charges aren't always visible. And since these feelings are often directed at you as the freeholder, it helps to have a clear knowledge and understanding of their value.
In this short article, you'll find a simple overview of what service charges cover, how they're paid, and why they're important for good property management.
What are service charges for?
The money paid as a service charge doesn't just go into the freeholder's pocket. It's actually reinvested in the block or property, and pays for a wide range of communal services. These can include:Service charges also pay for necessary administration, such as:
How are service charges paid?
There are two main types of service charge:Variable service charges: the amount owed is based on the actual costs incurred in a particular year.
Fixed service charges: property owners pay a fixed amount for the duration of their lease agreement.
These are generally paid monthly, quarterly, bi-annually or annually depending on the terms of your agreement.
The precise value of a block or property's service charges depends on the size of the property and the attention it requires. However, leaseholders who sublet can pass these charges on to their tenant as part of their rent. In this case, landlords benefit from the resulting services at no cost to themselves.
Why use local block management services for service charges?
Managing a block or property isn’t as simple as collecting money and applying a new coat of paint. It requires a detailed knowledge of landlord, tenant and property law, as well as a professional attitude to keep residents satisfied.
Using local block management services removes the weight of this complex and time-consuming task. Rather than constantly juggle the needs of multiple leaseholders and tenants, you can relax knowing the job is in capable and professional hands. Residential property management companies also ensure service charges are collected and enforced as per the terms of your contract.
At Plymouth Block Management, we offer comprehensive residential and commercial block management services to suit properties of any size. We're an accredited member of the Association of Residential Managing Agents (ARMA), and provide 24-hour on-demand property management services of the highest quality.
Contact us today to discuss your needs for local block management service in Plymouth.