Resident Update: Service Charges – from Sarah Phillips, Head of Estates at BRL
Over the last month, Barking Riverside Limited (BRL) has received a number of enquiries from residents in relation to service charges.
These enquiries have partly related to the Estate Service Charge – which some Managing Agents refer to as “Superior Landlord Costs.” Currently, BRL, Preim and the Community Interest Company (CIC) work together to set and issue the Estate Service Charge.
However, many of these enquiries also raise a more general concern regarding all service charges for residents. This includes the Plot/Block Service Charges that are issued to Leaseholders via their Landlord or Managing Agent.
Whilst BRL does not set any of the Plot/Block Service Charges and does not have any contractual means to review or impact these, BRL has taken seriously the concerns that residents have shared regarding increases. It is important to BRL that Barking Riverside remains an inclusive place to live for a variety of residents, so all charges should be considered holistically.
To support this, BRL and Preim have asked Landlords and Managing Agents to work collaboratively with us on service charges. Together, all parties wish create greater alignment and understanding for residents. This is a suggestion that has been welcomed by a variety of partners. Further, the CIC – which includes a majority of Resident Directors – will be involved in this work.
BRL believes this coordination will help increase scrutiny in all areas, whilst also setting consistent protocols and terminology that provide greater transparency for residents.
BRL would like to thank residents for their patience and engagement while this work begins. Note, some Landlords and Managing Agents will also be writing to residents to set out their position.
The Estate Service Charge
As is noted above, BRL, Preim and the CIC work together to set and issue the Estate Service Charge and therefore wanted to use this letter as an opportunity to re-issue clear communications.
Please note, BRL, Preim and the CIC worked extensively this year to ensure that the Estate Service Charge did not increase.
Although the total spend on estates services has marginally increased due to the continued growth of the estate, this has been fully offset because more residents have moved to Barking Riverside. In theory, the individual contribution that each household makes to the Estate Service Charge should not have increased.
However, and as BRL is now aware, the Estate Service Charge is sometimes apportioned via Landlords and Managing Agents differently to how BRL, the CIC and Preim calculate and apply this. Whilst there are several valid methodologies, this difference in approach can add complexity. This will be one of the key areas that is explored through the collaborative working referenced above, with all parties committed to comparing the methodologies that are being used.
Thank you to the residents that have brought this matter to BRL’s attention. Please await further correspondence once the group has started to meet.
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