What the management fee covers, and what it does not
Of every line on a service charge, this is the one people understand least and question most. Part of the reason is that it is often not shown on its own.
Two different things, frequently printed as one
What the managing agent charges to run the building is a fee for a service: collecting the money, keeping the accounts, instructing contractors, handling correspondence.
What the contractors are paid is the cost of the work itself — cleaning, gardening, lifts, insurance.
When those are presented as a single figure, a rise in one is indistinguishable from a rise in the other. Ask for them separately. It is a reasonable request and the answer is informative either way.
What sits inside the fee, usually
Managing the accounts and the annual cycle. Instructing and supervising contractors. Correspondence and record-keeping. Arranging insurance, which is a separate cost from the fee for arranging it.
What usually sits outside it
Anything described as additional, extra or one-off. Company secretarial work. Sale packs and enquiries when a flat changes hands. Consultation on major works. These are often charged on top, and often to the individual leaseholder rather than the building.
None of that is necessarily wrong. All of it is worth knowing before you decide whether the fee has risen.
Questions that get useful answers
Is the fee per flat or a share of a building total? Has it changed since last year, and separately from the contractors' costs? What is included, and what is billed on top? Are any additional charges shown, and to whom?
What this means if you stop paying
Do not stop paying while you query a charge.
Questioning whether a charge is fair and withholding payment are two different things. Under a lease, arrears can put your home at risk, and the sums involved do not have to be large. Keep paying, and put your questions in writing.
Where Synclair comes in
Synclair separates the management fee from the rest of the charge, shows how it moved between years, and sets it against published figures rather than against a feeling.
One document is enough to start. It is free for three months, and the three months begin when your first analysis is ready — not when you sign up.
Check your own statement →