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VFM Property Management

Call Us Now: 020 8658 6824

VFM is a member of ARMA and Ombudsman Services Property
2014-05-31T05:59:19+00:00
VFM is a member of ARMA and Ombudsman Services Property

Are your block management services guaranteed ?
2014-05-31T05:59:44+00:00
Are your block management services guaranteed ?

VFM’s managing agent services are proven to meet the RICS Service Charge Residential Management Code
2014-05-31T06:00:11+00:00
VFM’s managing agent services are proven to meet the RICS Service Charge Residential Management Code

Is your service charge money insured and fully protected ?
2014-05-31T06:00:32+00:00
Is your service charge money insured and fully protected ?

Property management services you can trust
2014-05-31T05:58:10+00:00
Property management services you can trust

Call now to take advantage of your free consultation
2014-05-31T05:58:32+00:00
Call now to take advantage of your free consultation

Are your property management services regulated by RICS ?
2014-05-31T05:58:52+00:00
Are your property management services regulated by RICS ?

VFM is a member of ARMA and Ombudsman Services Property
2014-05-31T05:59:19+00:00
VFM is a member of ARMA and Ombudsman Services Property

Service Charges

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Service Charges Management and Property Financial Accounts

Professionally prepared service charge accounts, forecast budget and planned financial expenditure are underpinned by transparent financial reporting and controls.

Service charges are calculated and agreed with the freehold landlord or leasehold management company on the basis of an approved budget forecast. The agreed service charge is collected from each leaseholder by issuing individual applications requesting payment in accordance with the lease.

Compliance with statute is necessary requiring that specific notices be served on the leaseholders which must state the tenants’ rights in a prescribed form. It is important to issue the payment demand within the correct time frame taking account of statute and the dates stipulated in the property lease.

Where ground rent is to be collected for the landlord or developer the same principles apply with payment demands requiring to follow a prescribed format in accordance with statute.

In order to facilitate the service charge calculations and the proportion to be allocated to each of the flats, it is essential to carefully prepare a projected cost estimate of the likely annual expenditure for the whole estate. An annual budget forecast will be prepared on your behalf for your agreement and approval.

Whilst the budget will need to take account of previous expenditure levels and estimated future requirements, figures must be realistic and affordable to the leaseholders who are being asked to contribute. Put simply, a good budget should ideally be tailored to the needs of the estate, the lease and the priorities and wishes of the freeholder and leaseholders. 

Armed with suitable and affordable expenditure limits appropriate to the property and its leaseholders, we will endeavour to maintain a balanced cashflow throughout the year. By securing service charge monies and ground rent payments in a timely fashion this helps ensure that financial commitments can be planned and met.

Income and expenditure is carefully planned to ensure that sufficient funds will be available to meet the management company liabilities in respect of regular outgoings from the service charge client account

Prudent financial management is exercised to control expenditure to within the limits set out in the overall budget. We are very much aware that overspend must be avoided and that an explanation will be necessary if the agreed parameters are at risk of being exceeded.

Service charge funds must be held separately in a protected, designated client bank account which provides safeguards and insurance to leaseholders in the event of default under the RICS Client Monies Regulations. Monies are covered by the RICS’ Client Money Protection Scheme.

An effective accounting system is also imperative to maintain the trust of the leaseholders and all participants. You are of course assured of impartial professional standards and ethics through the RICS Regulations and more specifically under compliance with the RICS Residential Service Charge Management Code.

Freehold, Right to Manage Company (RTM) or leasehold management company accounts may require to be produced separately which we will arrange in an acceptable format.

Client reporting of accounts is equally important. Regular financial reporting is presented in a clear, easy to read format using plain simple English, avoiding the use of technical jargon wherever possible. 

Experience has shown that transparent reporting allows fast, decisive action to be taken by management to help solve potential problems before they escalate. As you would expect from a firm of chartered surveyors, regulated by RICS, we carry out our duties in a professional and diplomatic manner.

Service charge accounts are prepared at the year end and circulated to all leaseholders in accordance with statutory requirements. We will implement suitable accounting procedures and will produce annual accounts for audit by chartered accountants in strict compliance with statute and the RICS regulations.

Freehold, Right to Manage Company (RTM) or leasehold management company accounts may require to be produced separately which we will arrange in an acceptable format.

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