Last updated - 13 April 2018
What are Service Charges?
They are collected by us to recover the costs that are incurred by providing services to a building. They can be communal lighting, communal electricity and window cleaning.
Service charges are set out in our tenancy leases and tenancy agreements.
We, or a company that we use, provides services that our leaseholders will pay towards.
Within our leases, you will find details of what we can and cannot charge, as well as what you are required to pay.
What do Service Charges cover?
They cover items such as cleaning, concierges/caretakers, repairs, lifts, pest control and any other running expenses to the block or estate. Customers also pay their share of building insurance and the maintenance of the building. This will be paid within rent.
You will only be charged if your home benefits from any form of service.
At Genesis, we will aim to:
• Deliver value for money on your services.
• Consult you about any significant changes to your services.
• Give you clear information about how your services are managed.
For a full breakdown of your service charge please refer to your Service Charge Estimate.
How are Service Charges calculated?
We operate with changeable service charges. These are based on the actual or estimated cost of the services provided to each development. They vary from year to year.
Each year we send our residents an estimate for the forthcoming financial year. This starts on 1 April. This is our forecast of how much we think it will cost us to provide the services during the year from April to March.
This estimate is based on looking at spending in previous years. We estimate the increase due to inflation and add any increases or decreases in spending that we know about for the next year. Charges normally change in April and we will give you a month’s notice of any changes.
At the end of each financial year we compare how much it cost us to give the services with the original estimate. If we have spent more than estimated there will be a deficit and this will be added to your service charge the next year. If we have spent less than estimated there will be a surplus and it will be taken off your service charge in the next year.
The accounts we send you in September each year will give you this information.
Description of Services
Here are some of the services provided by Genesis to our residents. These are service chargeable:
• Staff costs.
• Communal utilities.
• Communal ground maintenance.
• Cleaning and bulky refuse collection.
• Communal TV and aerial cost.
• Communal equipment repair and replacement.
• Entry phone and security cost.
• Managing agent service charges.
• Communal water (including Legionella testing).
• Health and safety and communal fire safety.
• Estate and communal car park maintenance.
• Usage cost – asset and equipment.
• Repairs and maintenance.
• Personal consumption.
• Management fees.
• Administration fees.
• Building insurance.
• Audit fee.
• Sinking funds.