COMMON TERMS EXPLAINED

Service Charge

The Service or Variable Rent Charge collected from all property owners is solely to pay for the regular maintenance of the building where you live. This money is used to ensure all communal areas and grounds are maintained to the best standard, buildings are insured, utility bills such as gas and electricity are paid and that all residents can enjoy a clean, pleasant and safe environment.

Advanced Billing

The Service Charge/Variable Rent Charge is an ‘on account’ payment billed in advance to ensure that suitable funds are available for annual expenses including building insurance costs and regular maintenance work.

Reserve Fund

Every building requires an interest-bearing Reserve Fund for major upcoming expenditure such as internal and external redecoration, access way repairs or replacement carpeting for communal areas.

Management Fee

Our management Fee is indicated in the Statement of Anticipated Expenditure. This is the fee we charge for managing the services and finances of the building. These fees form part of the Statement of Anticipated Expenditure.

Estate Insurance

Where appropriate, external communal areas are insured for Third Party and Public Liability insurance and the premiums are included in the annual charges.