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Managing Effectively Your Service Charge Accounts

Renting property today is a complicated issue, as there is a complication in service charges and rent reviews. In this article, you will know the service offered by the service charge account services provider and many issues to be considered if the landlord is to be able to recover the costs.

With the help of service charge accounts both the tenant and the property manager manages comprehensive service charge reconciliation. The behavior of some landlords and their management agents has raised concerns recently amongst leaseholders and has come under scrutiny in the media. Full budget reporting and next period budget calculation routines are usually provided by the service charge accounts. Service charge account provider understands the landlords and they have a duty to demonstrate the integrity of service charge accounts and to show that funds have been spent appropriately.

There are a many issues to be considered if the landlord is to be able to recover the costs:

•Works of improvement: In general, it is said that, a lease holders will not pay the costs of works of improvement to the building, if it is not mentioned in the lease agreement, but in some cases, lease holder can pay the extra cost.

•Management costs: If the landlord manages the property itself or has hired some agent for this, then it is not necessary, that he/she will pay the management charges, but in some cases, landlord can ask him/her to pay the charges. This must be provided for in the lease.

•Legal costs: If a landlord wants to charge legal cost from the lease holder, then it must be included in the lease agreement form.

•Caretaking and porterage: At the time of lease agreement, a landlord should mention it, as these kinds of charges can create disputes between landlord and lease holder. The cost of a resident caretaker or porter will normally be higher than for a non-resident.

•Heating, cleaning, garden maintenance, alarm systems: Again, the landlord's obligation to provide such services and the leaseholder's obligation to pay are usually referred to in the lease.

Service charges are one of the principal areas for dispute between leaseholders and their landlords. Some pointers should be considered in asking the right questions and taking corrective action when considering the validity of your service charges. There are many service charge accounts companies providing the following services:

•Preparation of annual service charge statements and statutory accounts •Company secretarial services •The setting and recovery of service charges •Advise property managers with guidance on best practice •Accounting for the service charges •Charge monies, systems and documentation •Provide assurance reports and audits