Constant price hikes by property management company?Make Text Bigger
I have two small flats in a small development of 7 which I rent out privately. A couple of years ago we got a new Freeholder who appointed a new Property Services Management Company. Every year the prices are increasing especially regarding admin fees and buildings insurance.
This year they wanted to increase the admin fees by 19%! The buildings insurance went up by £350.00. We got together and complained when the fees were reduced to 5% as a ‘goodwill gesture’! The buildings insurance remains the same. We seem powerless to stop this happening every year when the budget is set.
My question is are there any limits to fee increases and is there an industry standard ceiling say inline with inflation? Also how do we know they are getting the best price for insurance?
Finally is there any cap on the amount the freeholder can charge for ground rent as I suspect that will be next for a hike!?
We are not in a formal residents association and the price to buy the freehold is way too expensive.
Please Log-In OR Become a member to reply to comments or subscribe to new comment notifications.