PROPERTY Kings Court Birmingham SERVICE CHARGE BUDGET REPORT 1 January 2015 31 December 2015 Prepared by
CONTENTS KWB PROPERTY MANAGEMENT - PROPERTY MANAGEMENT CONTACTS KWB PROPERTY MANAGEMENT - SERVICE CHARGE OBJECTIVES BACKGROUND SERVICE CHARGE BUDGET YEAR ENDING 1 January 2017 31 December 2017 TENANTS APPORTIONMENTS EXPLANATORY NOTES
KWB PROPERTY MANAGEMENT PROPERTY MANAGENENT CONTACTS Surveying Team Andy Nuttall Management Surveyor KWB Property Management Ltd, Lancaster House, 67 Newhall Street, Birmingham, B3 1NQ Direct Dial: 0121 212 5986 Fax: 0121 233 4773 Email: anuttall@kwboffice.com Dane Hopwood Area Building Manager KWB Property Management Ltd, Lancaster House, 67 Newhall Street, Birmingham, B3 1NQ Mobile: 07737 078 837 Email: dhopwood@kwboffice.com Accounting Team Jon Tedstone Client Accountant KWB Property Management Ltd, Lancaster House, 67 Newhall Street, Birmingham, B3 1NQ Direct Dial: 0121 212 5983 Fax: 0121 233 4773 Email: jtedstone@kwboffice.com This team is responsible for the management of the property on behalf of the landlord and will endeavour to deal with your queries as promptly as possible.
KWB PROPERTY MANAGEMENT SERVICE CHARGE OBJECTIVES To adopt and operate under the RICS Service Charges Residential Management Code Third Edition published 2016. Details are available at www.rics.org. To ensure the respective obligations of landlord and tenant are discharged and that services are provided in an efficient and economic manner in accordance with the provisions of the occupation leases and relevant residential property service charge legislation. To recover on behalf of the landlord any costs and charges properly incurred in the provision of the services to the property. To ensure compliance with current legislation affecting the use and management of the property with particular reference to the health and safety compliance. Annual reconciliations will be prepared detailing the income expenditure service charge items in addition to statutory management company accounts. Our target is to complete and issue year end accounts within six months of the year end and to provide details of any new service charge budget before charges are raised. Bank interest will be credited to the balance of the service charge account.
BACKGROUND KWB Property Management Ltd (KWB) are instructed by KingsCourt (Birmingham) Management Co Ltd (KCMC) to deal with all property and company matters at Kings Court, Birmingham. KCMC hold a long leasehold interest in the site and grant long leasehold interests of 199 years to each of the 73 dwelling owners. KCMC raise a service charge to each dwelling owner to contribute towards the upkeep of the common external areas and main structure of the development as administered through KWB. Invoices are raised six monthly in advance on 1 January and 1 July each year. KWB process all company issues for KCMC including submission of statutory company accounts and administer the share ownership of KCMC by each dwelling owner. A separate ground rent charge is paid by each dwelling owners which is turn is paid to the freeholder through the long head lease interest by KCMC.
SERVICE CHARGE BUDGET YEAR ENDING 1 January 2017 31 December 2017
TENANTS APPORTIONMENTS
SERVICE CHARGE EXPLANATORY NOTES CLEANING Ice White Ltd continue to carry out cleaning of the internal common areas on a weekly basis. Any additional cleans are instructed at an additional costs for any one-off instances and additional areas such as the basement car park and the stairs around the development. A deep clean of the carpet and internal corridors is carried out every six months. WINDOW CLEANING The external services of all windows is carried out on a two monthly basis and includes the glazing to each dwelling as well as the common areas. This excludes the roof windows and access will be restricted for those with balconies. The windows cleaning contract was retendered during this year and is now carried out by Rapid Cleaning Services for a more competitive cost and better service. ELECTRICITY The electricity contract for the communal lighting is with Southern Electric. The current expenditure reduced due to current competitive electricity costs and the benefits of LED lighting installed in the common parts. WATER The metered water is supplied through two meters on site and is paid for through the service charge. This has seen a small increase which is being monitored. If there are any instances of individual owners consuming an unreasonable amount of water, including heating systems overflowing into the basement car park, then additional charges will be levied to them. REPAIRS & MAINTENANCE This includes all forms of general repairs and maintenance around the development including the main structure and basement car park. Approximately half of this cost is for roof and window repairs and includes responding to water ingress to individual dwellings and issues related to the ventilation of the roof areas as well as the Velux and metal window frames in the roof and appropriate scaffold access to these. Approximately a quarter of these costs are related to electrical and lighting repairs including continued replacement of basement car park lighting and ongoing reactive repairs to the door entry and intercom system.
LANDSCAPING This is for the regular maintenance of the two courtyard garden areas and is carried out by PR Landscaping every two weeks during the summer months and monthly during winter. This includes an ongoing seasonal programme of pruning and maintenance and lawn treatment. Any additional works such as block paving repairs and jet wash are completed at an additional cost. BANK CHARGES/INTEREST There is a small amount of interest accrued in the service charge bank account. PROFESSIONAL FEES This included one-off additional surveys of the development during this year including roof condition, asbestos survey and fire strategy report. MANAGEMENT FEE These are the fees paid to KWB for the management and administration of the services and monies for the development of the management company and continues at the same basis as previously. ACCOUNTANCY FEES This is the accountancy charge from PKF Cooper who provide statutory accounts for the service charge and management company. INSURANCE This is the main buildings insurance for the whole development and includes public owners liability and director and officers cover. The insurance broker was changed at the end of 2015 to ensure the most competitive insurer and basis for future years. FIRE ALARM This is the regular ongoing maintenance contract with the communal fire alarm system and ancillary items such as emergency lighting and fire extinguishers. A report was completed in 2015/16 to confirm further works planned in 2017 and funded from the reserve fund. A fire risk assessment will be completed at the end of these planned works. PEST CONTROL This includes the provision of bait boxes around the development to control rodents and general pests.
SUNDRIES Additional miscellaneous costs. SINKING FUND This is a contribution to ensure the final expenditure matches the income demanded for the year. The sinking fund at the start of 2015 was zero due to expenditure on internal corridor lighting and redecoration works and, therefore, with new contributions during the 2015 year, the total at the end will be just over 20,000.