
We know that service charges can be confusing. You may wonder what they are? Why you’re paying it and what the money is used for.
We have put together some frequently asked questions to try and answer your queries, but if you can’t find the answer that you’re looking for, please give us a call on 0330 175 9540.
If you’re finding the cost of living a struggle at the minute our Money Matters team is here to help
They can offer support with benefits and bills and help with heating, energy top-ups and shopping. If you have had a change in your pay or benefits, please get in touch with us. The team can let you know of any benefits that you may be able to claim and help you make a claim if you are entitled.
Get in touch with the team through our website or by calling 0330 175 9540. The service is free to Incommunities customers.
Some customers pay service charges for the services that they receive. The amount that people pay will depend on their tenancy/lease agreement and the level of services that they receive.
For example, if you live in an individual home on an estate, you may only pay a service charge for grass cutting on the Incommunities land that’s near your home.
That cost will be split between the Incommunities homes nearby.
If you live in a flat within a block, you’ll pay a service charge for the cleaning of the shared spaces in that block, for shared lighting and heating. Those costs will be split between the flats within the building.
Every penny that we receive from service charges goes towards the cost of the services that we provide.
Service charges pay for things such as:
Plus lots more. However, not all customers pay for all services.
For most customers the cost for the services that you receive are estimated and sent to you in February each year, alongside the rent increase letter.
Those customers are charged based on the estimates for the financial year starting in April. We’re doing a review of our services at the minute to help us understand the range of service we provide and their costs.
This review will help us to provide you with more detailed information, including the actual cost of the services that you receive.
Service Charge Estimate:
Firstly, we set a budget for your local area and/or the building that you live in each financial year. We don’t know in advance the exact amount it will cost us to provide services and repairs, so we estimate the cost of the service charge for the coming financial year by looking at previous costs and changes to the service. Also included are changes in the cost of contracts provided by suppliers of services to us at Incommunities, and any expected changes in VAT and inflation over the coming year.
A Service Charge Estimate is prepared before the start of the new financial year (April) and sent to you in February.
Some large items, for example, door entry systems need to be replaced from time to time. To plan for this, and to avoid charging you the costs all at once, we collect regular amounts as part of the service charge. These are known as provisions. When the work needs to be carried out, this money is then used to pay for the work.
In some cases, you may pay for equipment that has already been replaced. This is because the cost is spread over a number of years, so that we don’t have to pay for it in one big lump sum.
At the end of the financial year we compare the amount residents have paid during the year, against the actual cost of providing communal services and repairs to your local area and/or communal building.
Where we have spent less on providing the services than we have charged you, there will be a surplus on your Service Charge Certificate. This is also known as an underspend.
Where we have spent more on providing the services than we have charged you, there will be a deficit on your Service Charge Certificate. This is also known as an overspend.
If you are charged a variable service charge, the surplus (underspend) or deficit (overspend) will be included in the Service Charge Estimate for the next year.
Service Charge Certificates are only sent to tenants with a variable service charge.
A management fee is also included within the service charge to cover the administrative cost of managing the service charge. It is normally calculated at 5% of the total service charge amount or a minimum of 35p per week. We do not charge a management fee for the cost of insurance, or for providing gas supplies to communal areas.
If you have any queries or would like to provide feedback about service charges, please contact the Income Team on 0330 175 9540.