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overcharges

The Service Charge Engima:
The tenant pays, the landlord benefits

Service charges in the UK have always been an enigma. Though the tenant pays for services within the building they do not instruct the contractors, or have control over either the amounts spent or standard of service. It is in the landlord’s interest to charge his tenants for building improvements which enhance the landlords value in the building.

Here are examples where Service Charges Recovery Group looks to investigate overcharging and recover costs:

  • Common parts and reception upgrading
  • External works
  • New windows
  • Works to vacant areas and not common parts
  • New CCTV
  • Incorrect percentages used to apportion costs
  • Defects to buildings
  • Management fees
  • Initial set up fees
  • Cappings in the lease not taken into account
  • Liability for lifts for ground floor tenants
  • Poor maintenance
  • Electrical upgrade works
  • Sinking or depreciation fund
  • Air conditioning installation or upgrading
  • Plant or heating upgrading
 
BUILDING
Work carried
out to property
LANDLORD TENANT
Does not pay
for any of the
work himself
Pays for total
cost of works
Perhaps unjustly

 Receives full
benefit of upgraded
building

 Has paid for
'improvements' over
and above necessary
repair and
maintenance
 Enhanced asset value
paid for by others
Lost revenue
from bottom line