Financial & Service Charge Management - Explained

Effective financial and service charge management is fundamental to the successful management of any residential building. Clear budgeting, accurate accounting, and transparent reporting ensure leaseholders understand how their money is managed and give confidence that funds are handled responsibly and in accordance with the lease.

We provide professional, compliant financial management services, with transparency at the core of everything we do.

What Is Service Charge Management?

Service charge management covers the collection, management, and reporting of funds used to operate and maintain a building. This includes costs associated with:

• Repairs and maintenance

• Cleaning and gardening

• Utilities for communal areas

• Buildings insurance

• Health & safety and compliance

• Managing agent fees

• Reserve and sinking funds

All charges are managed in accordance with the lease and relevant legislation.

Budgeting & Financial Planning

We prepare clear, realistic annual budgets that reflect:

• Day-to-day operational costs

• Planned maintenance and compliance requirements

• Anticipated increases in utilities and contractor costs

• Contributions to reserve or sinking funds

Budgets are issued in advance, giving leaseholders clarity and time to plan.

Service Charge Collection

We manage service charge collection efficiently and fairly, including:

• Issuing compliant service charge demands

• Managing payment schedules

• Monitoring arrears

• Clear communication with leaseholders

• Supporting proportionate recovery action where required

Our approach balances financial responsibility with clear, respectful communication.

Transparent Financial Reporting

We believe leaseholders should clearly understand how funds are used. We provide:

• Detailed income and expenditure statements

• Regular financial updates

• End-of-year service charge accounts

• Supporting documentation where required

All reporting is clear, accurate, and compliant with statutory requirements.

Client & Trust Accounting

Service charge funds are held in designated client accounts in line with industry best practice. This ensures:

• Clear separation of client money

• Protection of leaseholder funds

• Accurate tracking of income and expenditure

• Full audit transparency

Client money is handled responsibly and securely at all times.

Reserve & Sinking Funds

Where provided for under the lease, we manage reserve or sinking funds to support long-term maintenance. This includes:

• Forecasting future major works

• Advising on appropriate contribution levels

• Managing funds transparently

• Reducing the risk of unexpected large demands

This long-term approach helps protect both buildings and leaseholders.

Compliance & Legal Requirements

We ensure financial management complies with:

• Landlord and Tenant legislation

• Lease provisions

• RICS Service Charge Residential Management Code

• Statutory consultation requirements (including Section 20)

Compliance protects leaseholders and reduces the risk of disputes.

Supporting Leaseholder Queries & Challenges

We respond professionally to financial queries, including:

• Explaining service charge demands

• Providing supporting documents

• Responding to accountant or solicitor enquiries

• Supporting First-tier Tribunal matters where required

Our focus is on clarity, accuracy, and fairness.

Financial Management for RTM & RMCs

We work closely with RTM companies and residents’ management companies to provide:

• Tailored financial reporting

• Director-level support and guidance

• Clear separation of responsibilities

• Practical advice on budgeting and long-term planning

This ensures directors can fulfil their duties with confidence.