Service charge accounting
Mastering your building finances
If you’re a landlord or property manager and issue service charges to tenants or leaseholders, you may need to use service charge accounting
Accounting for service charges can be complicated, and often requires an in-depth understanding of the sector to get right. As service charge specialists, we can take on the burden of calculating, collecting and administering charges for you so you can stay on top of costs and keep your property business running smoothly.
What are service charges?
Service charges cover the cost of building services and communal areas used by more than one occupant — also known as the ‘common parts’. Essentially, anything at the property that meets this criteria will be maintained and paid for out of the service charge. This can include:
- building infrastructure (such as windows and roofing)
- common areas (such as hallways, stairs and landings)
- lifts and escalators
- fire alarms
- emergency lighting
Many property management companies and landlords also provide gardening, cleaning or security services, which are typically included in the service charge.
The proportion of these costs owed by each leaseholder or tenant is usually determined by their lease.
Why should you hire a specialist in service charge accounting?
Collecting service charges in the UK is far from simple, especially if you have a large property portfolio. If you want to avoid non-compliance penalties or disputes with leaseholders, you’ll need to meet certain requirements.
At Almar BSL, we can help you manage your properties and obligations with ease. We’ll prepare and issue an annual service charge account statement, including a breakdown of expenses related to the property, your service charge plan, and the amounts required from each tenant or leaseholder.
Our service charge accounts services include:
- keeping you compliant with legal requirements
- in-depth analysis of your service charge accounts
- accurate calculation of service charges and ground rent
- collecting service charges from leaseholders and tenants
- chasing tenants and leaseholders for any unpaid service charges
- preparation of estimated service charges for forthcoming years.
If you need help maintaining and managing your property, we can draw up a detailed budget, including current and projected expenses. We’ll base service charge calculations on accurate cost estimates to ensure there are sufficient funds available to cover expenses, providing complete transparency for you and your leaseholders.
As your service charge accountant, it’s our job to make your life easier, so we’ll always be on hand to answer your questions or concerns.
To talk about what you need, just drop us a message, and we’ll be right with you.