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SERVICE CHARGE BUDGETS
Cleaver Property Management will help determine the Service Charge Budget and will continue to monitor its progress through the financial year. Analysis of the component parts of the Budget will give a better idea of where efficiency can be improved or changes need to be made. The development of a Planned Maintenance Programme is essential to understand the long-term costs likely to arise through the increasing age of the buildings. Projections of costs are then drawn up and the relevant Reserves included within the Budget. Cleaver Property Management will then work to ensure that these Reserves are protected so that future maintenance work does not impact the annual Service Charge Budget.
A smooth and even charge is preferential to one that fluctuates dramatically which can only serve to 'frighten off' potential purchasers. There is of course, a fine line to tread between an acceptable budget and yet a realistic budget. Cleaver Property Management will help determine this with the Directors.
The provision of regular financial reports will help determine the accuracy of such budgets. Cleaver Property Management sets targets for each aspect of the budget and refines budgets based on increased knowledge. Cleaver Property Management would expect to set budgets for any planned item of expenditure that exceeds 5% of the total Service Charge Budget.
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