Whether or not service charge accounts are prepared, the leaseholders may request a written summary of relevant costs incurred in accordance with section 21 of the Landlord and Tenant Act 1985.
The landlord shall comply with the request within one month of the request or within six months of the end of the accounting period, whichever is later.
The summary shall set out the costs to show how they have been or will be reflected in demands for service charge and, in addition, shall summarise each of the following
- Any of the costs in respect of which no supplier demand for payment was received by the landlord within the accounting period;
- Any of the costs in respect of which a supplier demand for payment was received but no payment was made by the landlord within the accounting period; and
- Any of the costs in respect of which a supplier demand for payment was received and payment was made by the landlord within the accounting period.
Where service charge costs are payable by the leaseholders of a building comprising four or more dwellings, the summary shall be certified by a qualified accountant.
Take a look at our Residential Service Charge Accounts page for a range of other blogs on this topic – covering requirements around leases, certification and summary of relevant costs.
Property Management Accounting