Page 20 - Living in a Managed Development

A typical service charge budget might include Budget heading
What it really means
Accountancy and audit fees
Following the the end of of the the financial year a a a a a a set of of service charge accounts is produced to make sure everyone has a a a a clear picture of how the money has been spent The costs involved in in in in producing these accounts includes a a a a a a a scheme accountant preparing records of all income and and outgoings and and reconciling these A A Chartered Accountant is then employed to audit the the the accounts prior to to them being distributed to to property owners Communal area cleaning
This covers expenditure on the general cleaning
of communal areas such as payment of cleaning
cleaning
contractors carpet cleaning
cleaning
or or equipment/ consumables where cleaners are employed on on site Company secretarial fees
(where applicable)
Sometimes a a a a a Resident Management Company (RMC) is put in place to manage a a a a residential development - giving the the people who live there greater legal rights An RMC is is a a a a a registered company with Companies House and and as such accounts and and confirmation statements need to be filed annually Contribution to reserves
Where allowed a a a a reserve fund is built up to cover items of non-annual expenditure such as replacing a a a a a a lift or repairing a a a a a a roof As part of of your service charge a a a a a a a a contribution is is made on on on an an annual basis to save for these items This means
the the cost can be be shared between both previous customers and those who currently live in the property As such we avoid large one off bills being the the sole responsibility o of the the current customer General maintenance
This covers any expenditure not covered elsewhere An example of a a a cost under this heading
could be the replacement of a a a a wooden rail that has decayed over time 20 | firstport co uk