Management fee 50% hike!

by Readers Question

9:44 AM, 16th April 2018
About 6 months ago

Management fee 50% hike!

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Management fee 50% hike!

Hi there. Any advice on this issue would be greatly appreciated.

I’ve just received a request for payment for the next three months’ worth of service charge on a flat I let out managed by a company called Centrick.

The service charge has gone up from £94.60 per month (already quite high in my opinion) to £116.50 per month.

When I compared the accounts from last year I saw that the only thing that has changed is the management fee. For managing eight flats within a block their fee has gone up from £2040 per year to £3600. That’s over 50% hike!

They have not given me any explanation for this.

Can anybody give me some advice about the best way to proceed?

Many thanks in advance

Ashley



Comments

Neil Patterson

9:49 AM, 16th April 2018
About 6 months ago

Hi Ashley,

A good place to start researching is the Leasehold Advisory Service and I have found a relevant page for you.

I have received a service charge demand and I think it is too high. What should I do? >> https://www.lease-advice.org/faq/i-have-received-a-service-charge-demand-and-i-think-it-is-too-high-what-should-i-do/

"A service charge is not payable unless it is reasonable but it is risky to withhold payment because this is likely to be a breach of your lease. It may be better to contact your landlord and express your concerns about the charge. You can try and resolve the situation amicably, perhaps through mediation. If this fails and you have evidence to challenge the charges, the matter can be determined by the First-tier Tribunal (Property Chamber).

You may require the services of a solicitor or a surveyor."

RobertHDean

12:24 PM, 16th April 2018
About 6 months ago

Their fee would have been agreed by someone, either your landlord or a residents management company (RMC), so whilst the comment about S.19 Reasonableness is perfectly valid, I would suggest someone agreed that they could charge at that level. If no-one agreed then they might well be in breach of their management agreement.

Claire Smith

16:00 PM, 16th April 2018
About 6 months ago

It may be worth talking to other owners in the building and getting quotes from other management companies. In one apartment building that we have an interest in, they are on their third management company. These ones are very careful not to increase the charges unless they can justify it and really look after the building (it helps that one of the owners of the company also owns an apartment in the complex!)

David Atkins

7:55 AM, 21st April 2018
About 6 months ago

I did a Right to Manage on this company. What area are you in? Contact me and I’ll explain what to do.
I’m IRPM registered.


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