Service charges and transparency of expenditure?

by Readers Question

7 months ago

Service charges and transparency of expenditure?

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Service charges and transparency of expenditure?

I have a commercial property and have been charged for items that are allowed by the lease. Especially where it says only 10% of all professional and management charges to be applied of the total budgets.

However, the management company applies all regardless and applies our 17.27% to the total budget. It has done year after year without correction.

The court has clarified and accepted by the management company.

I have tried to get break down of charges as it’s boosted to maximum to apply. Building insurance premium increased by 70% as insurable value got changed from £4.5m to £36m of a underground car park. Electricity charges are applied from £24k to now in the region of £37k in budgets.

What we were told there is only 3/4 electric meters on the estate and management company has installed more meters to calculate each areas electricity costs, but no proof of electricity costs is provided by way bills from the utility company.

Company has not provided our service charge demands or budgets for the last 24th June despite requesting emails numerous times. Director is saying these were posted to you why you haven’t received!

I have asked why don’t you resend or email them to me….. silence… He has also said when SC were prepared on 22nd June were sent and posted at the same time on Tenant Portal system but SC has not posted to this date on the system. We can not budget the costs and not sure what they are applying?

My question is how can I resolve this and Where can I report such an behaviour?

Sat



Comments

Neil Patterson

7 months ago

Hi Sat,

Are there other commercial properties in the block?

Is there such a thing as a commercial Right to Manage?

Satvir Sidhu

7 months ago

I meant in my post SC are applied that are not allowed by the lease.
Yes there are but different type such as
restaurants, designer kitchen.
company is in conflict with the owners of kitchen units and the owner of two restaurants.
I am not sure if there is right to manage the commercial units on this mixed development.
They hold the AGM at different times of the month each year and without contacting/informing members that don't visit the site on daily basis but display posters in some blocks at the entrances of flats giving short notice.
There is google group set up but don't use it to announce such an event.
Flat owners are also very unhappy the way charges are applied.

Satvir Sidhu

7 months ago

Reply to the comment left by Neil Patterson at 29/11/2017 - 09:53
Hi Neil

No there is no provision for the Right to Manage!

Sat

Jon D

7 months ago

Physically go to their office and insist on listing your concerns and requesting answers. Follow that with an email or dated letter with the same (for use in court later) but not before your visit else they will filibuster.
After that seek mediation.
After that submit a claim in the small claims court?
And only after that should one consider expensive lawyers IMHO.

Satvir Sidhu

7 months ago

Reply to the comment left by Jon D at 05/12/2017 - 23:19Thanks Jon for your valuable advice.
I have had the expansive lawyer but nothing got resolved for long term.
Hence I have been writing them myself since January 2017 regularly to resolve but they are just going around in circles.
We made a planned visit to their offices in May 2017 with our auditor but like you said they took all the recent expenditure invoices out from the folders that we went to inspect and their accountant & a company director that were agreed to be there were not present just the manager responsible for day to day running.
He promised to provide missing information following the meeting. Despite chasing several times for the information it has not arrived other than excuses. He has now left the company.
I made an formal complaint following their procedure. They replied by denying number of issues and promised to revert with information but hasn't done so.
I strongly believe that there is something dubious going on and they are all out to keep it under wrapp!!
I have no faith left in legals.
Is there a org that one can complaint about this?
Sat


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