Service charges generally apply where there is a management company in place, particularly in apartment-type developments, where services are being provided.
The service charge usually covers the following:
- Repair and maintenance of the exterior of the property and shared areas
- Cleaning of shared areas, such as corridors and lifts, including windows
- Lighting and heating in shared areas
- Maintenance and landscaping of shared gardens
- Waste management / communal bin collection
- Insurance of the structure of the apartment block
- Maintenance and repair of lifts
Service charges are based on the actual cost of delivering the service. Circle VHA reviews these charges annually and they may increase or decrease. We provide each tenant with the service charge budget for the estate in which they live. This outlines the costs of the different services being provided.
All management company accounts are audited annually by external auditors. The budget and audited accounts are provided to all owners in advance of the Annual General Meeting.
FAQ: Service Charges
How is the service charge calculated?
The service charge is calculated based on the unit size of the home, as laid out in the tenant’s lease, as well as the annual cost of managing the development.
Who decides what I pay in service charges?
Each year the agent compiles a draft budget of costs and this is presented to the Board of Directors, who may suggest amendments. When the amendments are made, the Board of Directors will approve the budget.
Why has my service charge increased?
The management requirements for a multi-unit development changes from year to year. An increase in your service charge may be due to additional maintenance works that are scheduled for the year ahead. The Board of Directors may also have decided to use a different, but more expensive third party contractor, which may have the effect of increasing your service charge.
How can I pay my service charge?
If you are a Circle VHA tenant, we establish the service charge that is due and this is included as part of the weekly rent charge that is applied to your property.