Last updated - 21 November 2017
What are Service Charges?
Service charges are collected by Genesis to recover the costs that are incurred by providing services to a building. Examples are communal lighting, communal electricity and window cleaning.
Service charges are set out in our tenancy leases and tenancy agreements.
Genesis, or a company that we use to manage our properties, provides services that our leaseholders will pay towards.
Within our leases, you will find details of what Genesis can and cannot charge, as well as what you are required to pay as an individual leaseholder.
What do Service Charges cover?
Service charges cover items such as cleaning, concierges/caretakers, ground maintenance, repairs, lifts, pest control, management costs and any other running expenses to the block or estate. Leaseholders also pay their share of building insurance and the maintenance of the building through the service charge (tenants pay these costs within their 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?
Genesis operates with variable service charges. Variable Service Charges are based on the actual or estimated cost of the services provided to each development and thus vary from year to year.
Every February we send all our service charge-paying residents an estimate for the forthcoming financial year which 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, estimating the increase due to inflation and adding in any increases or decreases in spending that we know about for the coming year. Charges normally change in April and we will give you a month’s notice of any changes.
At the end of every financial year we compare how much it actually cost us to provide 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 (within six months of the end of our financial year) will give you this information.
Description of Services
Here are some of the services provided by Genesis to our residents, which 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