My role at Gascoynes is to work closely with property managing agents and leaseholders to prepare annual service charge accounts. Service charge accounts provide leaseholders with some transparency as to where their service charge money is being spent. Dealing directly with managing agents allows for us to provide a smooth process for the leaseholders and landlords ensuring they receive their accounts in a timely manner, while paying close attention to detail to ensure the accounts show a true and fair reflection.
The managing agents we work closely with are members of ARMA (The Association of Residential Managing Agents) or RICS (Royal Institute of Surveyors), which are the two governing bodies for property managing agents. If you use property managing that are members of these governing bodies, you can be assured that you service charge money is in good hands. For example, ARMA approved members will have the show the following:
- They have right professional experience
- Your service charge money is being held legally and safety
- Members have professional indemnity insurance
- Agent is committed and bound by professional standards
- If something goes wrong, you can get independent redress
If you have a professional accountancy firm prepare your service charge accounts, they will follow TECH 03/11 guidance. TECH 03/11 is the guidelines that accountants use when preparing service charge accounts the following points are a summary of TECH 03/11 guidance.
- All service charge money must be kept in a specific bank account but managing agents do not have to keep service charge monies in separate bank accounts if they can identify monies relating to the difference properties.
- An annual service charge statement should be received from the managing within 6 months of the year end.
- Annual statements should be prepared on an accruals basis and include an income and expenditure account and a balance sheet.
- An independent account should conduct an examination of the accounts.
Although our services are provided to the managing agent, we see our role as that more to the tenants and ensuring we give them peace of mind that their money has been correctly spent and accounted for.
For anyone who has every rented a property be it business or residential I’m sure you will agree the service charge costs are always the ones you query and begrudge to some extent. Knowing that our services give tenants a better understanding of where their money was spent is something Gascoynes are really proud of.
If you would like to discuss ways in which we could assist you with your service charge accounts, get in touch today.
Call us on 01284 755 956 or drop us an email to firstname.lastname@example.org and we can direct you to our service charge team who will be happy to have a chat to discuss your service charge needs!