Service Charge Account Review 2025
For period 8th March 2024 – 31st January 2025
Hello all,
Please see the service charge accounts for the period to 31st January 2025 attached to this post, which includes a detailed income and expenditure account for the period and a balance sheet as at 31st January 2025.
Firstly, I apologise for the delay in providing this information. As mentioned in my January update, we planned to finalise the service charge accounts in March. However, six tenants decided to ‘jump the gun’ and formally requested a written summary of relevant costs incurred under Section 21 of the Landlord and Tenant Act 1985. Which, of course, you are entitled to; however, the disappointment comes from the fact that they hadn’t even waited to receive the final figures, which I had promised would be available in March. The figures we produced internally in March were identical to those provided by the accountants. The Service Charge accountants expressed how unusual this was and that it created unnecessary pressure and costs. This exercise alone has cost nearly £13,500, which will be deducted from the Service Charge account. It is another prime example of ‘burning the managing agents’ time’. Better use of these funds could be directed towards maintaining the park or potentially reducing service charge costs and lowering your individual invoices. For context, the Landlord and Tenant Act 1985 provides the legal framework for service charges, and it details the rights and obligations of both tenants and landlords.
As expected, and detailed in our 2024 budget, this was going to be a costly year aimed at improving health and safety on the park, reopening closed facilities, and undertaking repairs. Although we were unable to complete all planned maintenance due to time constraints, we are pleased with the progress made and remain committed to the overall project.
As noted in the accountant's report, the net deficit for the period will be recovered from the resident in accordance with the terms contained within their leases. We are currently reviewing all available options.
From now on, these accounts will be produced annually in this format. This will need to be taken into account when reviewing the service charge budget and preparing the annual expenditure forecast.
Sincerely,
Josh Ballard-Williams
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