The management company must decide what services are required for the common areas to be maintained in a state of good repair. To pay for these services, unit-owners pay a fee on an annual basis known as a service charge. The service charges of all owners are used to pay for services required to maintain and manage the common areas. The payment of an annual service charge is not optional if it is set out as a term and condition of your contract to purchase the unit. You should ensure that your solicitor explains your contractual obligations in this regard.

What should the service charge be used to pay for?
The range of services required will depend on the individual development. However, service charges should not include costs incurred by the developer in relation to the original design, construction and snagging of the development. The following are typical services that a service charge may be used to pay for (they therefore only refer to items in common areas):

1/Cleaning
Internal/ External common areas, Windows, Carpets/mats.

2/General Repair and Maintenance
Repair of Lifts, Lift inspections and consultancy.

3/Landscape and Gardening
Lawn Mowing, Landscaping internal/external, Pest Control.

4/Security
Servicing and maintenance of internal locks and doors, Intercom system, Access control (external doors and gates), Smoke alarms, fire extinguishers.

5/Waste management
Refuse collection, Recycling Services, Skip Hire, Gutters & Drains Cleaning.

6/Utilities
Electricity to common areas excluding units direct consumption, Lights external/internal.

7/Fabric repairs & maintenance
Internal/ External common areas, Painting, Car park, Footpaths and roads.

8/Professional Charges
Legal-management company may employ a solicitor, Financial-management company’s auditor, Bank charges, Insurance e.g. block insurance, public liability, Other e.g. surveyors, health and safety.

9/Sinking Fund Provision
Refurbishments, Refitting/replacement, Major repairs.