In April 2006, Soha introduced service charges for tenants living properties that share communal facilities. Charging tenants separately for rent and service costs that are not normally considered to be covered by rent, like maintaining communal grounds, is normal practice for Housing Associations. The Housing Corporation (the government agency who regulate Soha) have told us it is necessary for us to adopt this practice too. If we don’t recover these costs from the tenants that receive the services, the rest of our tenants would effectively be subsidising them.
Our leaseholders have always paid them and our sheltered accommodation tenants have been paying service charges for 3 years.
What’s covered by rent and service charges?
Your rent is the amount you pay for your flat or house. It covers the costs of Soha providing and up-keeping your property. It therefore covers the costs Soha incurs in managing your home, collecting your rent, property insurance, carrying out repairs and renewing kitchens, windows etc.
Your service charge covers costs Soha incurs in providing additional services to tenants not covered by the rent. We have to show you what we are spending and they are set out in the service charge statements you receive. They include items such as grounds maintenance, costs of servicing communal facilities and the cost Soha incurs in running these services. We are required to ensure that we recharge all the costs we incur and that we do not recharge more than it costs us.
The table below sets out the main items included in service charges:
| Electricity, Gas and Other Fuel: |
the costs of providing heating and/or lighting for communal areas and corridors, plus electricity for outside lighting. |
| Communal Cleaning: |
the costs of cleaning corridors, stairways and hallways etc. |
| Window Cleaning: |
the cost of cleaning the outside and inside of windows in communal areas. |
| Grounds Maintenance: |
the general upkeep of areas for which Soha is responsible. It includes periodic grass cutting, weed control, litter picking and maintenance of shrubs or trees which belong to Soha. We charge a proportion of the cost to residents in areas where there are communal grass or amenity areas owned and maintained by Soha. |
| Other Estate Costs: |
Any other costs associated with maintaining the communal areas e.g. removal of dumped rubbish |
| Sewage costs: |
The costs of emptying septic tanks, sewerage treatment, and communal pumping equipment (if you are not on mains drainage). |
| Automatic Doors: |
The costs of maintaining automatic doors into your block. |
| Administration costs: |
The costs of calculating charges, paying invoices etc needed to administer the service charges. This is set at a fixed level according to your annual charge. |
How have Soha worked out the charges?
The charges are based on estimates for the financial year using information such as contract prices, our accounting system, and annual budgets. We try to be as accurate as possible, but they are only estimates.
What if the calculations are wrong?
In the autumn we will work out the actual costs for the financial year to 31 March 2006. We will compare these with our original estimates and show you the differences. If we overestimated, the difference will be deducted from the following year’s charges. If we underestimated, i.e. the actual costs came in higher than initially estimated, the difference will be added to the following year’s estimated charge and spread over 48 weeks.
When will service charges change?
Yes. As a result of our review in the autumn, your service charge will change from the first Monday in October 2006, and annually thereafter. It will only rise if costs of providing the services are expected to be higher, if the costs are likely to be lower, your service charge will reduce.
How do you know Soha is not going to spend a lot then expect you to pay for it through my service charge?
Soha closely monitor all of their costs, and have a tender process which ensures we achieve the lowest prices available. Therefore the costs that are rechargeable to you should be reasonable for the service provided.
What happens if the service isn't good?
Soha has a number of contractors who carry out the services you are being charged for. If they are not performing the duties they are contracted for or are not performing them to a satisfactory standard then please speak to contact Customer Services either by e-mail on housing@soha.co.uk or by telephone on 01235 515900. They can get our Estates Manager take this up with our contractors. We are also keen to hear from tenants who can be a ‘Block Monitor’ for some of the services.
Do you have to pay if you don't use the facility?
It is not possible to calculate the service charge based on usage. if you are able to benefit from the service or facilities you are required to pay for them. The charge is based upon you having an equal share of a common area or facility provided.
The flat next door is empty, what happens to their share?
The costs are split by property rather than by occupants. So, if you live in a block of 4 flats your share will be a quarter of the charges for that block, regardless of whether one of the flats was empty for a while, or if your neighbouring flat has more occupants than yours.
What happens if I move house – will you refund me if you have overestimated?
No, the charges are based on the property and not the tenant. Any surplus arising from overestimates, or deficit arising from underestimates, will be spread over the next year and paid by the tenant in the property then.
Will you have to pay for repairs or improvements?
No, you will not have to pay for any repairs or improvements to your block or street.
What happens if you don’t pay?
The service charge is payable with your rent. As with rent, if you do not pay it, you will be breaking the terms of your tenancy agreement. If your arrears build up high enough, we could take legal action to recover the debt or to evict you from your home.
What happens if you can’t afford it?
All of the service charge items, except sewage costs, are eligible for Housing Benefit. If you are in receipt of benefits, some or all of the service charge may be covered. We will notify the council of these charges. Please speak to our customer services team if you are having difficulties paying your rent and charges