We understand how important it is to have complete visibility when it comes to your service charge, and most professional and responsible property managers will provide you with a clear overview of what fees and charges will be due, what they will cover and how they will be spent.
At FirstPort, we created a series of videos and factsheets called ‘Property Management Explained’ so our customers fully understand how we look after their homes You can view our video all about what the service charge pays for below.
In the majority of circumstances, the service charge covers the cost of keeping communal parts of the place you live – such as hallways, car parks and shared gardens – in good condition.
The money goes toward making sure the building you live in is safe, clean, and comfortable. That means taking on the day-to-day tasks, like mowing the lawn. It means sorting out the big jobs, like refurbishing the lifts. And, if something goes wrong – like if the underground carpark gets flooded – the service charge should help cover the cost.
Your service charge money should be kept in a separate bank account, just for your development, and at the end of the year you should receive a full account of what we have spent.
The Cost
The cost of your service charge will vary depending on a number of factors. Variables like the number of homes on site, the facilities available and the location of your home will all have an impact. The service charge is based on an estimate or budget we prepare each year which considers all the running costs relating to the communal areas of your development.
Where your building is run by a professional, responsible managing agent, the service charge will be carefully budgeted every year to cover the work that is needed. Generally, the charges are divided up into equal portions and payable by everyone living at the development.
Paying into a service charge pot also means you never have to worry about finding the right supplier or deciding how to split the bill with your neighbours – your managing agent should do that for you. At FirstPort, we find that our scale and experience mean we can always find the right people for the job – from the gardener that comes every month, to the expert we call if there’s a leak in the roof.
Transparency and Trust
It’s no secret that service charges have been a cause of controversy in the past, and in rare instances they have been mishandled by substandard managing agents – with homeowners bearing the cost. However, by being informed and knowing the right questions to ask you can protect yourself from any negative surprises.
As the largest operator in our market, we have taken the lead in transparency and choice over fees. Where they are properly accounted for, responsibly held, and transparently spent, service charge payments remove the worry about upkeep and disputes over the management of communal areas. They allow you to get on with the most important thing: enjoying your home, and it’s our job as managing agent to make sure that happens.
