Service Charges explained
We work out the cost of service charges for the coming year by looking at previous costs, together with any changes in the price of a contract (for example, if cleaning costs have increased), the amount of VAT and the level of service required.
You will pay an equal share for the costs of your block and your estate, unless your lease agreement says differently. For example, if there are 100 properties in your block and the cost of cleaning is £10,000, you will pay one-hundredth of the cleaning costs, which works out at £100 for the year.
Your service charge covers the direct cost of services we provide to your block and/or estate. With your rent increase letter, you’ll receive a breakdown of your service charges. This will show you exactly how much you will pay for each of the services provided.
Over the past year we have seen an increase in costs, for example the rising costs of fire and building safety as Government requirements change, as well as price increases such as building materials and parts.
Where we have felt the impact of Covid we have delivered services differently to you –throughout the pandemic our caretakers and cleaners have been out on estates and focussed more on deep cleaning and dealing with fly tipping.
We do not make a profit on rent and service charges; these are used to pay for delivering services to you and investing in your homes and communities.
We set up new service contracts through a competitive procurement process. We always aim to offer the best level of service and value for money.
Each block may have different costs. For example, one block may have more flats than another block, so the cost is lower per property, or another block may have more frequent cleaning or other services.
Some houses have to pay service charges as they form part of an estate and receive a range of services that are not included in the rent (for example, tree pruning or gardening).
All of the charges are shared between all of the properties in your block and on your estate receiving the service. For example, ground floor flats share the cost of lift servicing, middle and upper floors contribute to the door entry system. All houses on an estate will have to contribute to grounds maintenance contracts to keep the area clean and tidy.
The charges for maintenance and repair of equipment shown on your service charge statement are there to make sure that there are regular maintenance checks and a prompt repair service. With these contracts in place, we do not provide refunds if the equipment fails. We regularly monitor the contractor’s quality of service to make sure repairs are completed quickly.
Please contact our Customer Resolution Team either by emailing firstname.lastname@example.org .
The contractors we use may come at times when you are not in, so you may not see the service being provided. If you feel the service has not been provided, please contact us and we can get in touch with the contractor.
Initially you should get in touch with us directly by emailing email@example.com .
You have the right to appeal against any rent increase. To appeal, please write to the Residential Property Tribunal Service (RPTS), 10 Alfred Place, London, WC1E 7LR. They will review your rent charge and let you know their decision. There is more information on the appeals procedure here:
Most service charges should be covered by Housing Benefit / Universal Credit if:
- You have to pay them to live in your home
- The council accepts that the charges are not excessive
Housing Benefit / Universal Credit will not be paid for personal charges.
If you receive Housing Benefit or Universal Credit, you must tell the local council or the Department of Work and Pensions of your new rent and service charge so that they can make the necessary changes to your benefit entitlement. It is your responsibility to check that the correct amount is being paid.
If you pay by Direct Debit, you do not need to do anything. The payment amount will change automatically.
If you pay by Standing Order, you will need to contact your bank immediately to arrange for the payment to be changed from April 2019.
For easy ways to pay your rent or request a refund click here. You can use the following methods to pay your rent and service charges:
By Direct debit or Standing Order
By text message with All Pay
At a shop with a Pay Point outlet
Get in touch with our income team, they are here to help. They can
- Help you to manage your money
- Arrange a payment plan with you
- Help you prioritise your debts
- Help you access any Benefits you might be entitled to
- Refer you to our Employment and Training advice service if you are looking for work
Last year our Financial Support Team helped our residents maximise their income and access welfare benefits worth over £100,000.
For more information, please email us at firstname.lastname@example.org or call us on 0300 323 0325.