Service Charge Management & Accounting
Budgets that hold, demands that comply with the lease and the statute, client money held on trust, and year-end accounts that leaseholders can actually follow. For freeholders, RMC and RTM directors who are tired of chasing their agent for a reconciliation.
Fixed written quote per block — no percentage uplift on contractor invoices.
Get a service charge quote
Tell us the number of units and the block's current arrangement — we'll send a written fee within one working day.
The annual service charge cycle
| Stage | What happens |
|---|---|
| Budget | Line-by-line budget built from actual spend, contracts and planned works, agreed with the directors before issue |
| Demands | Issued in the form the lease requires, with the statutory summary of rights and obligations attached |
| Collection | Funds banked in a designated client account, arrears chased on a fixed escalation timetable |
| Expenditure | Suppliers paid, invoices coded to budget lines, variances reported to directors quarterly |
| Reserve fund | Contributions held separately and mapped against a rolling major-works plan |
| Year end | Accounts prepared, certified by an independent accountant, issued with balancing charge or credit |
Arrears, without the drift
Service charge arrears are the single biggest cause of a block running out of money before its works are done. We run a fixed escalation: reminder at 14 days, formal notice at 30, final notice at 60, and referral for recovery at 90 — with the directors informed at every step rather than discovering the position at year end.
Compliance built in
- Section 21B summary of rights and obligations served with every demand
- Client money held on trust under section 42, Landlord and Tenant Act 1987
- Section 20 consultation triggered automatically when the £250 threshold is crossed
- Section 19 reasonableness tested before large items go into the budget
- Buildings insurance, fire risk assessment and EICR renewals diarised for the block
Service charge FAQs
What does service charge management include?
Setting the annual budget, issuing demands with the statutory summary of rights and obligations, collecting and banking funds in a client account, paying suppliers, maintaining the reserve fund, and producing year-end accounts for certification.
Do service charge accounts have to be audited?
Most leases require certification by an independent accountant rather than a full statutory audit. The exact requirement is set by the lease, and we work to whatever the lease specifies.
Can leaseholders challenge a service charge?
Yes. Under section 19 of the Landlord and Tenant Act 1985 charges must be reasonably incurred and the works of a reasonable standard, and leaseholders can apply to the First-tier Tribunal to test that.
How are service charge funds held?
In a designated client account held on trust for the leaseholders under section 42 of the Landlord and Tenant Act 1987, separate from our own operating funds.
What is a reserve or sinking fund?
Money collected in advance for future major works such as roofs, lifts or external decoration, so that a large section 20 bill does not land on leaseholders in a single year.