Management Services - Further Information
Service charges are collected in accordance with the terms in the lease. This could be monthly, quarterly or annually. Demands are issued and receipts are monitored.
A request for payment and polite reminder are issued prior to a final demand. Dependent on the terms of your lease, interest will be added together with our fees for time spent in dealing with the arrears.
In the event of non-payment, recovery via the courts may ultimately be necessary. In this case, we will instruct a solicitor. An additional charge will be made for our time (please request a copy of our terms and conditions).
All monies are held in a designated client account and any interest accrued is payable to the lessees. Dorset Property receive monthly bank statements and operate the cheque and paying-in books.
If the property is to be maintained properly, regular inspections are essential. This includes external areas such as paths, gardens and car parks and internal common areas such as stairwells, corridors and lifts.
The number of annual visits required depends on the size and condition of the development but generally we undertake a routine visual inspection each quarter and we are on site as required to inspect ad hoc works or deal with emergencies.
On-going maintenance would include:
- Entry phones
- Swimming pool
- TV aerials
- Security system
- Fire equipment
All expenditure is budgeted at the start of the year. A list of maintenance and repair requirements is also drawn up following each visit and contractors brought in as necessary.
Our contractors are chosen based on their previous work and by recommendation. We are also happy to use the client’s preferred suppliers. We check annually that all contractors have up to date public liability insurance.
Health and Safety
We recommend that all properties have an annual, professional health and safety risk management appraisal for the common areas. We will also arrange, as necessary, surveys for asbestos in common areas in accordance with the Control of Asbestos Regulations (CAR) 2012.
As part of the bookkeeping service, all invoices will be paid (subject to funds being available in the property account).
Budgets and Reserve Funds
Budgets for income and expenditure are planned annually. It is strongly recommended that a reserve fund is established to carry out future capital works, meet unexpected expenditure requirements and prevent cash flow problems. The unanimous agreement of all lessees is required to create such a fund if the lease does not provide for one to be created.
These are prepared at the end of the financial year and are submitted to the Auditors for preparation of Certified Accounts where appropriate.
Breach of Contract
In the event of a breach of the lease, we initially write to the lessee, to remind them of their responsibilities and to request them to remedy the breach. If they remain in breach we will instruct a solicitor to write to them. The costs are chargeable to the lessee in default. As a last resort we will instruct the solicitor to take legal proceedings against the lessee.
It is essential that correct cover is in place and Dorset Property will obtain quotes for all relevant insurance including:
- Employers’ liability
- Public liability
- Directors & officers
- Plant & equipment
Private Limited Companies (e.g. residents’ management companies), must employ a company secretary, who is responsible for maintaining company records and returning necessary documents to Companies House. The secretary can be a director of the company but if no lessees wish to take on the role then Dorset Property will sub-contract it to a local firm of accountants, whose office will become the registered address of the company.