Property service charges are fees that property owners or tenants pay to cover the costs associated with maintaining and managing a property or a group of properties. These charges typically apply to properties within a shared or communal space, such as apartment buildings, or commercial complexes. The purpose of service charges is to fund the upkeep and management of common areas and shared facilities.
Here are some common elements included in property service charges:
Maintenance: This covers the costs of maintaining common areas like hallways, gardens, parking, and communal spaces.
Utilities: Service charges may include payments for communal utilities such as lighting in common areas, water supply, and heating.
Security: If the property has security measures, the service charge may contribute to the cost of security personnel or surveillance systems.
Management Fees: These fees cover the cost of property management services, including administrative tasks, arranging maintenance services, and handling day-to-day operations.
Insurance: Service charges may include contributions to property insurance for shared spaces.
Reserve Fund: Some service charges contribute to a reserve fund, which is set aside for future major repairs or renovations.
Understanding your property service charge involves reviewing the terms outlined in your lease agreement or bylaws and examining any itemized breakdown provided by the property management company.
If you have specific questions about your property service charge, it's advisable to contact your property management company or the entity responsible for collecting these charges for clarification.
They should be able to provide you with a detailed breakdown of the charges and answer any questions you may have.