Annual Service Charge

What is an ‘annual service charge’?

All members of Property Management Companies, effectively every apartment owner, must pay an annual service charge. This fund covers the costs of running the apartment development.

Each year the Property Management Company decides how the fund should be spent. It decides the budget for that year and outlines what services the company intends to use during the year. This includes things like cleaning and employing a management agent.

The Property Management Company also decides;

• how much money must be put aside for future jobs such as painting or re-carpeting
• how much money must be put aside in a ‘sinking fund’ for longer term or unforeseen expenses

As such, the service charge is set & agreed by the apartment owners themselves through their Management Company, not by the Property Management Agents - who simply administer collection. The percentage of the overall cost of running the apartment complex that each apartment owner must pay, will be set down in the lease you signed with your solicitor upon purchasing your apartment.

What is covered in my service charge?

The service charge is used to pay for all expenses related to the development, such as:

• Repair and maintenance of common areas, car parks, footpaths, roads
• Cleaning common areas, windows, carpets, gutters and drains
• Lift repairs and inspections
• Electricity and lighting for common areas
• Landscaping and gardening, pest control
• Security – CCTV system, internal locks and doors, intercoms, external doors and gates
• Safety – smoke alarms, fire extinguishers, health and safety inspections
• Refuse collection and recycling
• Professional fees (block/building insurance, public liability insurance, legal/auditor, on-site caretaker, management agent)
• Sinking fund contribution

What happens if we don’t pay our service charge?

If the Management Company does not collect charges it will run short of money before the end of the financial year. In time, it may not be able to provide even the most basic services.

If any individual apartment owner does not pay their fees, legal proceedings will be commenced against the apartment owner. The cost of legal proceedings will be borne by the apartment owner.

Any outstanding debts will be tied to your apartment. Upon selling the apartment, debts will be deducted from the money you receive once the sale has gone through. As set out in your lease, interest will also be charged on any money owed.

Parking permits will not be issued / will be revoked from accounts in arrears.

Offenders who refuse to pay the annual service charge have been, and will continue to be, successfully pursued in whatever manner required.

As a result of strict implementation of the rules above The Waterside currently enjoys collection rates of service charges >99% each year, and also enjoys the lowest annual service fee in the area.