Service Charge Accounting
Accounting for service charges and service charge accounts in the property industry is a specialist area that requires expertise and an understanding of the sector.
If you own a flat or apartment and share services and or a communal area, then the chances are, you'll be required to pay an annual service charge to your landlord or Management Company.
Put simply, the service charge covers the cost of maintaining everything used by more than one occupier. Generally this is everything outside the four walls of your apartment. This will include the hallways, stairs and landings, lifts, entry phone and satellite TV systems, fire alarms and emergency lighting where they are present and of course, the main external fabric of the building. Services such as gardening, cleaning and window cleaning are also included within the service charge. Collectively, these items are usually referred to as "common parts" or "common services" and anything at the property that meets these criteria will be maintained and paid for out of the service charge.
The provision of services and the calculation and apportionment of service charge is determined by the lease.
We have considerable experience in service charge administration. Our services include:
- Analysis of service charge accounts
- Calculation of service charges and ground rents (if applicable)
- Service charge collection
- Chasing of unpaid service charges
- Preparation of estimated service charges for forthcoming years
We also work closely with a Residential Block Management company, Altrist (www.Altrist.co.uk)
If you require further information, a free estimate or would like to arrange a meeting/visit to discuss your requirements further please feel free to contact us.
