tennant rip off service charges ??????

[miliitant]

i am throwing the following to the forum for a bit of advice.
a collegue has given me this service charge for where she lives.
it is an apartment complex of 5 flats. they are brand new.
the charges below are from the NEW management company as the builder of the complex has just signed over all the rights on service charges

i think they are a complete rip off but i know no different.
i was expecting myself for her to pay about £600, not the £900 demanded

comments people

many thanks

[valeriej43]

Re: tennant rip off service charges ??????

Definitely sounds like a rip off to me, the service charges on flats in general are a lot, but this is ridiculous
My daughter bought a very small garden flat a few years ago, it wasnt even in the actual building, but she was charged for repairs to the other flats hallway and stairs, and for a new stair carpet, which she never needed to set foot on,also for leaks in the top flats roof,
In the end she had to sell up, and come back home

[miliitant]

Re: tennant rip off service charges ??????

bumping this as she will want to know what to do by tomorow

thanks

[charitynjw]

Re: tennant rip off service charges ??????

Hi miliitant,

How much was the previous charge, as the above estimate shows a surplus carried over?

Is there a tenants committee?

If not, why not organise an ad hoc one to address this, & query the fact that, while one would expect costs to rise in line with inflation, as there is a surplus carried forward from the previous service charge, how do they justify this new figure?

I suspect there is a clause in the tenancy contract which claims that the management co. can charge whatever they want to, but that kind of unilateral clause is often open to challenge as an unfair term.

[miliitant]

Re: tennant rip off service charges ??????

thanks for looking in

i have had a brief look at the contract and it mentions a fee of £500 to challenge any of the fees

as stated, there was no previouse management company, it was the builders, it has been only about 12 months since the flats were built and the builders have only just given this management company the contract

ill ask for the contract on monday from he and ill post up the t&c

[charitynjw]

Re: tennant rip off service charges ??????

Hi again

This gives a pretty good overview
http://www.netlawman.co.uk/info/term...reement-part-1

& here's the OFT Guide
http://www.oft.gov.uk/shared_oft/rep...rms/oft356.pdf

[charitynjw]

Re: tennant rip off service charges ??????

i have had a brief look at the contract and it mentions a fee of £500 to challenge any of the fees

I would have thought that this was challengeable, as it seems to me to be a disincentive to anyone wanting to excercise their legal rights; this would possibly be regarded as penal.
& how can they say it is a genuine pre-estimate of the cost - ask them for a justification & breakdown.

[teaboy2]

Re: tennant rip off service charges ??????

Agreed, infact i believe it maybe unlawful to charge people for challenging (which is bascially disputing) something where no court is involved. And even if it went to court only the court fees and solicitors costs would be payable by the losing party but only if the judge does not state otherwise.

For a start that Fee for £500 to challenge would also have to be in the contract, and would likely also be deemed an unfair term!

[DidsySith]

Re: tennant rip off service charges ??????

TBH the charges stated are ESTIMATED now as this new management company have taken over I presume they do this sort of business everyday. Then they really should have some cast iron figures for you and not an estimate. Just a thought.

[shell]

Re: tennant rip off service charges ??????

What they can do is get a committee together of all tenants and fire the factor. We did this a good few years ago as we weren't getting the service we were being overcharged for.

We were told at the time we had to form a proper committee and get the majority to agree to getting rid of the factor.

Only one problem though, is this flat part of a whole new estate? If so then the whole estate would need to be involved. If the whole estate is expected to pay this huge amount it wouldn't be difficult.

Just ask the local pub if you can use a room for a couple of hours (they usually let you do it for free as they think they are going to make money out of you), write or print off a note telling everyone there is to be a meeting on said day at said time and watch everyone arrive. You then set up your committee and the next step is to call in the factor and have words with them.

You'll be amazed at how het up people get about being ripped off. Also how many skills appear to help with the whole thing.

[miliitant]

Re: tennant rip off service charges ??????

I MANAGED TO GET THIS OFF HER TODAY AND AWAIT YOUR COMMENTS, MANY THANKS