Service Charge Accounts require specialist knowledge of the property industry, and we have the expert understanding of the sector to ensure that accounts are managed effectively on behalf of landlords and property management firms.
A Service Charge Account is used by landlords, property management companies or property investment companies in order to collect service charges from tenants or leaseholders. These charges can vary from one term to another, or they can also be fixed, with an amount agreed with tenants in advance before the charge is made.
Service charges can include fees associated with costs for the upkeep of communal areas such as a pool, garden, gym, garage and lifts, as well as the general maintenance of a building’s structure and façade. It can also cover the cost of on-site staff, such as a concierge or security guards, as well as lighting and many other communal aspects to a property.
It is crucial that service fees are held in trust for the tenants and are not included as assets belonging to a property management company or landlord. Any tenant money that is kept cannot be included in the statutory accounts of a company.
Careful management of Service Charge Accounts is necessary to avoid legal issues, and to meet HMRC’s financial requirements. At The Fish Partnership, our team of experts can advise on the creation and ongoing management of a Service Charge Account, ensuring that any landlord or property manager is compliant with relevant rules and regulations.