Last month in my last blog post, I droned on about service charges that almost every flat or apartment owner has to endure, whether we like it or not.
We don’t like paying it and feel that we don’t get value for money. Whilst we are obliged to pay it under our own respective leases, it still hurts as it reduces our rental return or disposable income.
There are, however, things that we can do to reduce the impact. As I said last month, there are ways to gain some control over the level of services that are administered and how much it costs.
Generally there are two common ways that your building is set up, either through a Residents Management Company (RMC) or Freeholder Controlled (FC).
If you are in the former camp then this is encouraging for you, hopefully. Under this circumstance, fellow owners control your building but they are usually lay people who may need some input from you. You should check on Companies House who are the directors as they can be made up of your managing agent, a distinct conflict of interest. This may not be so sinister as other owners may never have come forward to put themselves in that position. I can check the situation for you, if you wish.
The latter camp is much more of a worry for you. Basically, you have no control and nor do your fellow owners. You can be abused significantly and have now way of preventing it… Until now.
Right to Manage legislation was written to help owners in such a situation to gain control of their own destinies. It’s a complicated process and I’ve assisted over 2,000 owners achieve relative utopia or control.
Blog me if you wish, I’m here to help.