Your Service Charge (or Variable Rent Charge) Explained

The Service Charge/Variable Rent Charge collected by Solitaire Property Management is designed to pay for the regular maintenance of the development where you live. This will ensure all communal areas and grounds are maintained to the best standard and that all residents can enjoy a clean, pleasant and safe environment.

Your Service Charge/Variable Rent Charge is paid into a named, interest-bearing trust bank account which is specific to your development. All interest earned is applied to this account. This ensures that the money you pay can only be spent on your development, and that only residents on your development can benefit from it. Money collected is never used on other developments. These requirements are all designed to protect you; to ensure your fund is adequately safeguarded.

For your benefit and peace of mind, you will receive a certified set of accounts after completion of the first accounting year. Any surplus between your on account payment after actual expenditure is verified and will be credited to each owner in accordance with the terms of your Lease or Transfer. Similarly, any shortfall will be debited to the individual owner's account.

Advanced Billing

Your Service Charge/Variable Rent Charge is an on account payment billed in advance. This is to make sure that suitable funds are available for annual expenses like building insurance costs and regular maintenance work. We need to make sure that money is available to pay contractors and to ensure that the developments bank account does not become overdrawn. Incurring extra bank charges and penalties will result in increases to the Service Charge/Variable Rent Charge and, naturally, we would prefer not to pass on these costs if they can be avoided.

Reserve Fund

It is common sense and good practice to save for future known large expenditure and the proverbial 'rainy day'. That is why we think it is sensible for a development to have its own 'Reserve Fund'. Therefore, should any major expenditure arise, there will be funds available towards the cost for these works .This will include, amongst other things, any internal and external redecoration, access way repairs or replacement common area carpet.

Your Reserve Fund is interest-bearing and can only be used to finance projects on your development. It is set aside to provide a contribution to the actual costs incurred.

Ground Rent/Fixed Rent Charge

Your Lease or Transfer may state that as the property owner, you are required to pay an annual Ground Rent/Fixed Rent Charge to the Freeholder. Sometimes, the Freeholder asks us to collect this charge on their behalf.

Management Fee

The Management Fee for this development is indicated in the Statement of Anticipated Expenditure. This is a fee we charge for managing the services and finances to your development. This charge may be subject to an annual increase. These fees form part of your Statement of Anticipated Expenditure.

Estate Insurance

Where appropriate, external communal areas are insured for Third Party and Public Liability insurance and the premiums are included in your annual charges.