Q. Why is my Service Charge higher than my neighbour or the building down the road?
No two buildings are the same and although a block may look to be similar, there will be many differences that may affect the amount of service charge.
The number of apartments in a building can have an effect with regard to economies of scale – larger buildings can often be run more cost effectively than one with just a few apartments to share the fixed costs such as lift maintenance.
Different buildings have different equipment to maintain – looking after fire alarms, electronic gates and lifts for example are a significant costs that may not apply to some buildings. Not all buildings will have a provision in the service charge for building up reserve funds to pay for redecorations and major repairs. If these items aren’t reflected in the service charge, then they are effectively a hidden cost for the future.
The service charge for individual properties can be calculated in a number of ways to reflect the services that they individually benefit from or, in some cases to reflect the size of the apartment.RETURN TO FAQ’s