Service Charge Accounts

If you are a Landlord, Tenant Management Company or Managing Agent then you are required to prepare service charge accounts for any property containing 5 or more residential units.  For properties with 4 or fewer units, service charge accounts are not compulsory, but must be provided if a tenant requests them.

The form and content of these accounts are laid down in the Landlord and Tenant Act 1985.  However, there are impending new regulations covering the production of Service Charge accounts for residential properties which will put even greater pressure on Managing Agents and Landlords.

As Chartered Accountants Rayner Essex is authorised to sign Limited Company accounts and Service Charge statements prepared under the provisions of the Landlord  and Tenant Acts.  The firm has extensive experience of dealing with Service Charge accounts and the accounts of Limited Companies who collect Ground Rent, Service Charges and administer the affairs of residential flats.

A number of freeholders now receive rent from mobile telephone companies, which can make a significant contribution to the running costs of a block of flats.  This income also needs to be accounted for and Rayner Essex can help in this respect. Likewise the firm can assist with the form and structure of corporate vehicles created to purchase the freehold.

The firm has a dedicated team who deal with the preparation of Service Charge accounts and the accounts of related Limited Companies which may own the freehold and receive ground rents.

If you would like to discuss any of these matters, or arrange for an initial free consultation please call Clive Goodkind on 020 7388 2641 (email cg@rayneressex.com)