The Growing Concern of Service Charge Complaints

A recent survey conducted by Leaseholder Support highlights the increasing frustration among flat owners regarding unpaid service charges, with this issue emerging as the number one complaint.

The Impact of Service Charge Arrears on Resident Managing Companies

Resident Managing Companies, responsible for managing their own blocks of flats, are often the main victims of service charge arrears, facing the challenge of neighbours not fulfilling their payment obligations.

Common Problems Faced by Flat Owners

Many blocks of flats experience ongoing issues with residents ignoring requests for payment and failing to attend important resident meetings, making the situation even more difficult.

Insights from the Association of Residential Managing Agents (ARMA)

According to ARMA's Annual Report, over 25% of service charge complaints are linked to undelivered service charge payments, underscoring the prevalence of this issue across the industry.

The Challenges of Asking Neighbours to Pay Service Charges

Mary-Anne Bowring, creator of Leaseholder Support, discusses the uncomfortable nature of asking a neighbour to settle their outstanding service charge, noting the potential for strained relationships.

Practical Solutions for Handling Unpaid Service Charges

While legal action should be a last resort due to its costs and complications, solutions like legal reminder letters complying with Civil Procedure Rules and services that manage service charge accounts can help resolve these issues effectively.