We often get asked, “what exactly is a service charge?” It’s a good question!
Put simply, a service charge is an amount of money you pay to cover the cost of extra services provided for your home or property. This can include things like providing communal or shared services to a building like cleaning, door entry or grounds maintenance. As well as important safety aspects like communal lighting, fire safety and CCTV.
When will you get information about Service Charges?
You will receive this information in a letter once a year with your rent notice that will explain your service charge. This letter will also tell you what services are covered and how much they cost. The amount you pay should be fair and reasonable, and the services provided should be of a good standard
Which Services are provided?
Estate Charges
- Any costs from a private estate management company who manage the site.
Cleaning
- The number of hours an Estate Assistant cleans the site. This will include mopping the floors, hoovering, dusting, and cleaning lifts.
Bins
- The cost for the time the Estate Assistant to prepare and move the bins to ensure they are ready for collection by Cardiff Council.
Rubbish Removal
- The cost of the time the Estate Assistant needs to arrange for the removal of any dumped items on the site.
Fire Safety
- The cost for the time the Estate Assistant to check the fire alarms once a week to ensure communal areas are safe. This may include ensuring corridors are free of any obstruction or checking if all the doors close correctly.
CCTV
- The amount of time allocated for the Estate Assistant to check the CCTV if any incidents are reported.
Service Charge – Gas and Electricity
- The energy costs throughout the year from the communal areas. You will only pay for what energy source is provided. If there is only electricity in the communal areas this will only be charged. These are calculated from the invoices received from the energy companies.
Service Charge – Water Rates
- The water rates costs throughout the year from the communal areas.
Service Charge – Window Cleaning
- The cost of cleaning the windows in the communal areas. These are completed four times a year by a private contractor. The work is then checked by the Estate Assistant.
Equipment Service and Repairs
- The cost of repairing or servicing any equipment in the communal areas such as washing machines and sprinkler systems. It may also include the cost of any repairs in the communal areas.
Landscaping
- The cost of a private contractor maintaining the outside communal areas. This service includes grass cutting, the trimming of any trees or hedges and other gardening work.
Cleaning
- The cost of a private contactor completing any additional cleaning of the communal areas
Service Charge Refuse Removal
- The cost of a private contractor removing any dumped items from the communal areas.
Service Charge – Health and Safety
- The cost of completing work in the communal areas such as legionella testing and fire risk assessments.
CCTV Servicing and Repairs
- Any routine servicing of the CCTV equipment to ensure it is working correctly and any additional repairs throughout the year.
Lift Servicing and Repairs
- Any routine servicing of the lifts to ensure it is working correctly and any additional repairs throughout the year.
Fire Alarm Servicing and Repairs
- Fire Alarm Servicing and Repairs Any routine servicing of the fire equipment to ensure it is working correctly and any additional repairs throughout the year.
Have a question?
Yes – the amount you pay weekly is made up of two charges:
- Your rent
- Your Service Charge (Where applicable)
These charges are taken as one payment.
The service charges you pay depend on where you live.
As it isn’t possible to guarantee 12 months in advance exactly how much services are going to cost, we will estimate how much we expect to spend on providing services to your block and / or estate..
We base this estimate on how much it has cost in the previous year and take into account any upcoming one-off charges that we know of or any increased costs from third-party providers (like contractors or utility providers)
Once we know the total cost of the services, we then look at who benefits from this service and share the costs. For example, the cost of cleaning a block of flats would be divided equally among all the properties in that block.
Your annual rent and service charges notification letter will detail the amounts you need to pay.
If you receive benefits, we will inform your Local Authority of any changes to your rent and service charges.
If you pay by Direct Debit, we will make the arrangement to increase or decrease your regular payment.
If you pay by other methods, please continue to do so with the new amount.
If you’re having trouble paying your rent or need financial support, please don’t hesitate to reach out to our Money Advice Team. We’re here to help and support you through any financial difficulties.
If you receive Housing Benefit or Universal Credit, most service charges will be covered.
You are, however liable to pay for any personal heating or water charges, as these are not covered by Housing Benefit or Universal Credit.
Yes, service charges apply to estate services for houses as well as flats.
This includes communal grass areas or hedges / shrubbery, communal walkways, litter picking, lighting, gates, shutters and any CCTV.
We welcome all feedback and always aim to improve our services. If you feel the service quality is not up to standard or you have any concerns, please contact the Income Team.
If you do not feel the service charge is correct or have any questions about them, please contact the Income Team.
Where can I find more information about service charges?
For detailed information about our service charges. Please refer to our Service Charge Policy document below. This covers everything you need to know.