Service charge accounts

The law says you must provide these accounts every year to your residents.

• Give reports within six months of your financial year end.
• Provide them if you manage a block of flats.
• Share them to help people selling their homes.
• Use them to show how reserve funds are growing.
• Give them to prove you follow the lease rules.

The professional usually works from their office rather than visiting your building.

• They review all your bank statements and receipts.
• They check invoices for repairs and gardening work.
• They look at utility bills for communal lighting.
• They ensure costs match what the lease allows.
• They sign a certificate to prove it is right.
• They send a final report for the residents.

Having clear accounts makes life easier for everyone living in the block.

• It builds trust between the residents and owners.
• It makes selling a flat much faster and easier.
• It prevents legal fights over unpaid service bills.
• It ensures the building stays safe and well maintained.
• It proves that the reserve fund is protected.

These accounts answer the big questions about where the residents money actually goes.

• Did the landlord spend money on the right things?
• Is there enough cash for a new roof later?
• Are the cleaning and repair costs fair prices?
• Does the bank balance match the receipts held?
• Is the managing agent following the legal rules?