How service charges are calculated
If service charges apply to your property…..
Service charges are extra charges for services that are not included in your rent payment. They often apply to communal areas such as window cleaning of flats, communal lighting in flats and grass cutting on estates. They are set on the basis of actual costs from the previous year or new quotes for the current year.
With services charges, the accounts are inspected at the end of each financial year in March. Any overcharge is refunded and any undercharge is added to the next year.
Statements of how service charges are calculated are included with the annual rent letter sent out around March.