Service charges
Some residents pay service charges for the property they live in. A service charge is a charge for a service provided to your home that is shared with other properties in a block or on an estate; in some cases it is personal to you.
Service charges and their costs are unique to the scheme you live in. Each scheme will have services that are necessary to maintain the property you live in and the communal surrounding area.
They can include (but are not limited to) the cost of gardening, cleaning and lighting for the areas you share with your neighbours. In some cases, it covers communal gas, electric or water charges if you’re on a communal meter.
For a social rented customers, service charges are those services / costs which are listed within your tenancy agreement and not covered by your rent payment.
Why are my service charges changing?
Calculating your service charges
Most of our homes have variable service charges — these are based on the actual cost of providing the service or services and the cost can go up and down accordingly.
The service charge budget is based on an estimate of the services we’ll provide that year. We prepare the budgets carefully to make sure that they are realistic and reasonable.
Up to 6 months after the end of the financial year, you will receive an annual statement, so you can see how much we have collected and how it’s been spent.
Any underspend or overspend may be applied to the next financial year’s costs — which means any difference will either increase or reduce your following year's charges. However, some lease agreements require us to recover an overspend or refund an underspend straight away. Where this is not the case, we will notify you to let you know.
Some of our homes have fixed service charges. This means we charge a single fixed amount to cover all your services.
Some houses or flats with services don’t have a separate service charge on your review letters. This applies if you have an affordable rent, intermediate rent, or market rent where the charge of rent includes the cost of any services you receive.
What do the service charges cover?
We provide a wide range of extra services which are above the standard rental of your home. The services we provide differ depending on where you live and the local facilities available. Not everyone receives these services as it’s not always possible to provide them in your area. Here are a few examples of the services that may be included in your service charge:
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Caretaking
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Cleaning and window cleaning
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Lift maintenance
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Door entry maintenance
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Gardening of communal areas
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Lighting in communal areas
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TV and digital aerials
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CCTV
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Fire safety protection
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Management fee.
Housing benefit covers these communal charges.
There are some services that may be personal to you, such as:
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Personal energy costs, such as electricity and gas
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Personal water rates
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Emergency Link line services.
Housing benefit will NOT cover these charges.
The service charges you pay will depend on where you live and the services you receive. Your tenancy agreement states which services you receive. Your total service charge payable is detailed in your rent increase notice.
Why do my neighbours pay a different amount?
Service charges are costs shared by everyone who benefits from the services, and what you pay will depend on where you live and the services you receive. The way the costs are split also depends on whether someone rents or owns their home.
Example
- A housing scheme is made up of 15 homes — 10 flats and 5 houses.
- A gardener maintains all the grasses areas on the site — this will be a shared cost between all 15 homes.
- A window cleaner visits the flats monthly — this will be a shared cost between the 10 flats only.
- The flats require quarterley fire safety checks (by law) — this will be a shared cost between the 10 flats only.
Can I query my service charges?
If you have a query about the services you are charged for, please contact us.
Get in touch here: Contact us | Regenda Homes
Why do I get multiple letters about my service charges?
At the start of the review year, you will receive an estimate of your service charges from us. This is what we believe your services will cost over the year ahead.
At the end of the review year, we are able to compare our estimate and the actual costs for the services. We'll see if you have paid us too much or too little based on our estimate at the start of the year, and we will write to you to let you know. (This creates an overspend or underspend, which will be called a surplus or deficit on your letter).
In most cases, we will apply the different to your service charges for the next budget. However, some lease agreements require us to recover an overspend or refund an underspend straight away. Where this is the case, we will write to you to let you know.
What is a management fee?
A management fee is part of the service charge payable to Regenda. It can be a fixed fee or a % of costs, depending on your agreement.
There are a range of factors that contribute to the management fee. It may include, but is not limited to:
· Financial processing – preparation and distribution of all accounts and budgets, collection of service charges, setting up direct debit mandates, contract renewal on suppliers providing services, organising payment of invoices for works at your scheme.
· Administration – responding to customer queries, communicating with residents and ensuring that records are updated, ensuring compliance with the provisions of all statutory legislation.
· Scheme visits – where there are communal areas inspecting the building and estate areas and recording repairs as necessary, dealing with any resident queries that arise from the scheme visits.
· Contractors – arranging works and managing contractor relationships, coordinating service and maintenance contracts, ensuring all contractors comply with health and safety legislation, creating specification and monitoring works.
· Health and safety – ensuring the building complies with the latest Health and Safety regulations, ensuring legal signage is displayed, arranging fire risk assessments.
What if I'm not satisfied with a service/services I receive?
We don't always get things right, and your feedback is vital to help us learn and respond.
If you have feedback about your service / services, please get in touch with us here: Contact us | Regenda Homes