What is a service charge and what should it cover? This is one of the most common questions leaseholders ask. For many people living in blocks of flats or estates, service charges can feel confusing, especially when bills rise year on year. At Wishtower, we believe transparency is vital. That is why we take time to explain what service charges are, how they are calculated, and exactly what they should cover.
Understanding Service Charges
When leaseholders ask about service charges, the answer starts with the basics. A service charge is the money you pay towards the upkeep, repair, management and insurance of your block or estate. It should not be profit for the managing agent or landlord, but a contribution to shared costs that keep the property safe and functional. At Wishtower, we make sure leaseholders can see clearly where their money goes and why it is necessary.
Typical Costs Covered by Service Charges
So what should a service charge cover in practice? While every block is different, there are common areas that nearly always fall under this cost. These include cleaning of communal spaces, lighting and electricity for hallways, maintenance of lifts, gardening for shared grounds, and repairs to roofs and exterior walls. Buildings insurance can often be included too but you should check this.
At Wishtower, we manage both residential and commercial properties, so we know that clarity around these expenses is essential. Our goal is always to ensure leaseholders understand exactly what their charges include.
Planned vs Day-to-Day Expenses
It is useful to separate costs into routine and planned expenses. Routine expenses are the regular costs, such as cleaning, electricity and insurance. Planned expenses, often called major works, might include things like repainting communal areas, replacing a roof, or installing new safety systems.
At Wishtower, where required, we can put together long-term maintenance plans so leaseholders know what to expect in advance. This avoids nasty surprises and helps spread the cost of larger projects fairly.
The Importance of Transparency
A big part of this lies in transparency. Leaseholders have the right to know how their money is being used. At Wishtower, we provide clear breakdowns and open communication so there is no confusion. We also ensure our clients comply with all legal obligations around service charge demands, accounting and consultation.
This openness builds trust between managing agents and leaseholders, and it reduces the risk of disputes further down the line.
Can Service Charges Be Challenged?
Sometimes leaseholders question what is a service charge and what should it cover if they feel costs are unreasonable. In these cases, it is important to know your rights. Service charges must be reasonable and reflect actual costs. Leaseholders can ask to see accounts, request explanations, and in some cases challenge charges at a tribunal if they believe the costs are unfair.
At Wishtower, we take pride in reducing the likelihood of disputes by being clear from the beginning. We ensure our clients’ charges are fair, legally compliant and easy to understand.
Why Good Management Matters
When managed poorly, service charges can create frustration and mistrust. But when handled correctly, they keep buildings safe, pleasant and well maintained. This is why it always comes back to the quality of the managing agent.
Choosing a professional company like Wishtower means knowing your block is being looked after properly. From maintenance to compliance, we ensure service charges are used wisely to protect both property value and residents’ wellbeing.
Get In Touch
We hope this blog has helped answer the question what is a service charge and what should it cover. Understanding how service charges are calculated and what they include is essential for every leaseholder. Having clear information, fair costs and professional block management support from Wishtower ensures your building is maintained properly, your money is spent wisely, and disputes are kept to a minimum.
For more advice on how Wishtower can help you with service charges, maintenance planning, compliance and all aspects of residential block management, please contact us today. We would be delighted to discuss how we can tailor our services to meet the specific needs of your block or estate.
We have offices in Brighton, Eastbourne and Croydon. If you would like to enquire about employing our team at Wishtower, then please get in touch.
Brighton: 01273 658030
Eastbourne: 01323 312121
Croydon: 0203 150 2050
Make sure your block remains well-managed, compliant and financially transparent with Wishtower’s expert property management services.
