Want to win more clients with your service charge budget proposal?A Winning Proposal
When it comes to managing blocks of residential flats, the main concern for leaseholders is, will the budget cover all the necessary work required to keep our properties well maintained, if this can be delivered with charts and graphs that are clear, concise and informative, even better.
It is a fine line between over-charging and in turn losing the potential contract to a competitor or under-charging and not having enough money left to complete the work you said you would and end up having to use you own money. The budget, which is there for major repairs and expensive jobs, known as a ‘sinking fund’ should cover costs, not make a profit.
Unless you have a crystal ball and the skills of Mystic Meg or Dereck Acorah on your team, predicting the future won’t come easy but forecasting comes with experience. Even then surprises can still occur and that is why the ‘sinking fund’ is required. Whether it is an ‘Act of God’ or a fault within the building, when emergency work is required the funds need to be available.
Service Charge budgets should cover the maintenance of the buildings and the upkeep of surrounding areas such as stairways, lifts, gardens and cleaning of communal spaces, failing to do this to a high-standard will see a loss in business.
The Legal Stuff
When you are putting the contract together for your leaseholders it is important that you make them aware of the budget and what it covers, when it needs to be paid (monthly, quarterly, annually) and how it is divided up. It also needs to state that if the year ends and there is money left, is it returned to the leaseholders or deducted from the following year’s budget. It is wise to include a ‘sweeping-up’ clause in the contract to cover general maintenance, otherwise you can only charge for specific work.
To keep leaseholders aware of what they are paying for it’s important to provide a written breakdown of costs throughout the contract to prove that you have spent funds wisely, should they feel the need to question what you have done they have the right to request receipts and documentation,.
How Decorus for Sage Can Help
Calculating budgets economically can be time-consuming and complicated, the service charge module (included in the block management edition), simplifies the whole process to ensure that you win clients with accuracy and with help from Sage ongoing work with service charges and job costing is made a whole lot easier too.
Want to improve your block management services? Complete our contact form or call 0114 2307305 to arrange an online demonstration and discover what benefits Decorus for Sage can bring for you.