Service charges are an integral part of landlords’ work in financing value for money services and sustaining customer satisfaction. Housing Associations have traditionally levied service charges with most local authorities in England introducing them in the ‘noughties’. In Wales, local authorities and housing associations have introduced service charges as part of the Welsh government’s new rent policy. In Scotland service charges are also significant. The rolling out of Universal Credit is having an impact on benefit entitlement for service charges.
The calculation and management of service charges for leaseholders and tenants can be complex. We have recently worked with a number of social landlords on various aspects of service charges. This web page outlines some of the services that we offer to help social landlords with service charges.
Service Charges ‘Health Check’
We have devised a service charge ‘health check’ that offers social landlords a comprehensive high level review of special and communal services and service charges to establish their robustness, effectiveness and sustainability and that offers recommendations for improvement.
The ‘health check’ asks and answers the following questions:
· What do services cost to provide and is income maximised?
· Does the service comply with legal requirements and good practice?
· Does the service offer value for money?
· How good is the property data?
· How good are the accounting systems and charging mechanisms?
· How good is the input and monitoring from residents?
· Could further charges be de-pooled?
This is a useful check for landlords who would like to establish the strength of their existing approach to services and service charges and whether and how that approach can be improved. However, we can also tailor this standard approach to the individual requirements of a client. For more information, please contact Adrian Waite at Adrian.waite@awics.co.uk
Introducing and De-Pooling Service Charges
We have developed a methodology for introducing and de-pooling service charges that enables us to identify the scope for new and / or increased service charges and to develop options for their introduction. Our methodology includes:
· Considering what to charge for based on statute, case law and the provisions of leases and tenancy agreements
· Identifying the merits of fixed or variable service charges
· Identifying all appropriate costs
· Identifying options for apportioning costs between schemes, leaseholders and tenants based on the best available information
· Ensuring charges represent Value for Money
· Keeping it Simple
· Consulting residents and providing complete information
This is a useful process for landlords who would like to examine the scope to introduce new service charges or to vary existing service charges as part of a strategy to maximise income or improve value for money. However, we can also tailor this standard approach to the individual requirements of a client. For more information, please contact Adrian Waite at Adrian.waite@awics.co.uk
Training Opportunities
We provide seminars on ‘All You Want to Know about Service Charges in Social Housing’.
For further information or to book a place please click HERE
This seminar is also available in-house. The in-house sessions are similar to the open seminars but are tailored to local requirements. For further information about in-house sessions, please contact Adrian Waite on 017683-52165 or adrian.waite@awics.co.uk
Publications
We publish a 100-page guide to service charges entitled ‘All You Want to Know about Service Charges in Social Housing’ that is updated annually. The latest edition was published in February 2016. For more information or to order a copy, please click HERE
Brochure
To download our brochure on the advice and support that we can provide on service charges please click HERE
