overcharges
The Service Charge
Engima:
The tenant pays, the landlord benefits
Service charges in the
UK have always been an enigma. Though the
tenant pays for services within the building
they do not instruct the contractors, or
have control over either the amounts spent
or standard of service. It is in the landlord’s
interest to charge his tenants for building
improvements which enhance the landlords
value in the building.
Here are examples where
Service Charges Recovery Group looks to
investigate overcharging and recover costs:
- Common parts
and reception upgrading
- External works
- New windows
- Works to vacant
areas and not common parts
- New CCTV
- Incorrect percentages
used to apportion costs
- Defects to buildings
- Management fees
- Initial set up
fees
- Cappings in the
lease not taken into account
- Liability for
lifts for ground floor tenants
- Poor maintenance
- Electrical upgrade
works
- Sinking or depreciation
fund
- Air conditioning
installation or upgrading
- Plant or heating
upgrading
|
|
| BUILDING |
Work
carried
out to property |
| LANDLORD |
TENANT |
Does
not pay
for any of the
work himself |
Pays
for total
cost of works
Perhaps unjustly |
|
Receives
full
benefit of upgraded
building |
Has
paid for
'improvements' over
and above necessary
repair and
maintenance |
Enhanced
asset value
paid for by others |
Lost
revenue
from bottom line |
|
|
