Block Financial Management
The management of your finances is a very important aspect in the role of a managing agent. We comply with the RICS Members’ Accounts Regulations so your service charges are held in protected client accounts meaning your money is safe at all times. In addition, we undertake to reconcile the bank accounts we operate on a daily basis. This is because we operate a Client Money Services Account with the NatWest Bank, which interfaces, directly with our own property management system. This means the financial information for our developments is always right up-to-date.
Income and expenditure is also carefully monitored and we produce comprehensive schedules of expenditure regularly throughout the year to make comparison against the budget. At regular points, these statements of expenditure are also sent on and discussed with the client.
Service Charge Budgeting
In good time for a developments financial year-end we will, in consultation, produce an estimate of expenditure for the following year, based upon known costs and a realistic estimate of other costs. We can also advise upon a 5-10 year reserve fund plan, to ensure that there is a properly budgeted Reserve Fund to cover the cost of future cyclical maintenance and major works.
Service charge collection
Once the service charge estimate is agreed invoices for service charge will be issued in accordance with the terms of the lease and circulated approximately one month prior to their due date. Any overdue payments are subject to our rigorous arrears procedure. We will issue one final reminder and instruct solicitors in recovery. Detailed records of all charges to residents and payments received are maintained on an individual basis on our property management database.
Year End Service Charge Accounts
At the end of the financial year we will supply the financial information to the appointed accountants to produce statutory compliant year-end statements of service charge expenditure for distribution to the Residents. We demand shortfalls of service charge as necessary. Separate year-end statements of account are produced for ground rent and any other company income. We aim is to circulate all accounts within 3-6 months of the year-end.
According to an article by The @Independent, Japanese knotweed has knocked £20bn off value of UK property market.… https://t.co/A6YaG6t3hf
Looking for things to do in #Birmingham? Here are @timeoutbirm’s top 20 recommendations. https://t.co/jE7OLhURzX https://t.co/n96cdz8lL3
Great property in the heart of #Manchester! https://t.co/SZ6bYFXZoQ
January has reached its conclusion and fledgling companies within the property sector are seeking to ...Read More
As discussed in the previous blog, there are instances whereby it may be deemed necessary to change ...Read More
Do you need to change your Residential Block Management Company? It is common for clients in reside ...Read More