Why do service charges feel so expensive?
Burns Hamilton’s Emily Gray explains the truth behind rising service charges.
If you’re a leaseholder, you’ve almost certainly asked the question: “Why are our service charges so high?” It’s one of the most common concerns raised and one that often comes down to the services contained within a building and how well the property is maintained.
A frequent misconception is that service charges are income for the managing agent – they are not. Service charges are ring fenced funds collected solely for the running, safety, maintenance and long-term protection of your building.
At Burns Hamilton, the income we receive is limited to the management fee clearly set out in the management agreement and agreed with our client. This fee represents only a small percentage of the overall budget. The remainder of the budget is allocated entirely to the services, suppliers, and statutory obligations necessary to manage the building responsibly and effectively.
Your annual service charge budget isn’t put together behind closed doors. Our Property Managers work closely with our client, usually the Directors of the Resident Management Company to discuss and agree every cost. Through balancing service requirements with cost, we collectively ensure the building receives good value without compromising essential standards. We share the budget with leaseholders, with line-by-line itemisation and a description of what each line covers, giving confidence that spending decisions are thoughtful, reasonable and proportionate.
Financial transparency and accountability are key to building trust with your Managing Agent, and it is something which Burns Hamilton do well. Directors receive regular expenditure vs budget reporting and explanations of any variances. All leaseholders receive clear, accurate annual accounts prepared in line with industry best practice. We also have proactive arrears management to ensure the building’s finances stay stable, whilst balancing the individual situations of residents.
A well managed service charge isn’t just an annual bill – it is an investment in your building’s future. These funds support the integrity and safety of your building, ensure smooth day-to-day operations and maintain the long-term value of the property.
When service charges are managed transparently and responsibly, owners and residents benefit from a well-maintained environment and the reassurance that their contributions are being used wisely.
Speak to Burns Hamilton for transparent, accountable management of your property and service charge funds. We provide Directors and leaseholders with the reporting, expertise and financial confidence they deserve.
About Burns Hamilton
For more than five decades, Burns Hamilton has been at the heart of block and estate management across Dorset and the surrounding areas. Established over 55 years ago, the business has grown through a simple commitment: clear communication, transparent financial management, and hands on care for every building it manages.
The company prides itself on delivering a personal, responsive service supported by industry expertise. Its team includes qualified professionals across property management, compliance, finance and customer service, all working together to ensure all clients, whether they be Resident Management Company Directors, freeholders, developers or leaseholders, receive high quality support tailored to their building’s needs.
Great block management is more than compliance, legal terminology and finances – it’s about people and places. The team takes pride in building strong relationships with clients, understanding each development’s unique character, and ensuring buildings remain safe, well maintained and pleasant places to live.
Whether managing a small residential block or a large, complex development, Burns Hamilton combines professional expertise with a genuine commitment to care. For those seeking reliable, transparent and approachable block management, the team stands ready to help.
CONTACT
T. 01202 391663
E. admin@burnshamilton.co.uk
A. Hawthorn House, 1 Lowther Gardens, Bournemouth, BH8 8NF
