What is a service charge?

Service charges cover the cost of services we provide in the communal areas you live. Not everyone pays a service charge so we will make it clear at the start of your occupancy if you need to pay for any extra services in addition to your rent or accommodation charge. Service charges are covered under the terms of your agreement. The cost is shared between everyone who receives these services and they will vary depending different services you receive.

How are service charges set? 

Each year we set the service charges based on our best estimate of the costs and advise you through your Annual Variation Notice. The costs are usually based on the current contractual amount or previous years actual costs.

What is a variable service charge?

We operate a variable service charge regime for most homes. We set the estimate for what we expect to spend on services at the beginning of the financial year. Then, at the end of the year, we review the estimate with actual expenditure. The difference between the estimate and actual expenditure is the balancing charge. We advise you of the actual expenditure and the balancing charge in your Year End Statement.

If we have spent more on providing the services than the estimate, the amount is added to your account. If we have spent less, the amount is credited to your account.

For tenants, the balancing charge is applied to your account and spread over the following year.

For leaseholders, the balancing charge is applied to your account and is either available to be refunded or a payment is requested.

How are my service charges apportioned between my neighbours and me?

The percentage you contribute is calculated according to the terms of your occupancy agreement. The cost of the service is normally shared out equally between all the properties in the block or area. Some occupancy agreements share the cost based on the relative floor area of your home, or how many bedrooms there are, or the rateable value of the property.

My service charges increase every year but the services I receive do not change. Why is this?

We follow strict legislation about what costs we can recover from customers, and we try to keep any increases to a minimum. Costs can still go up or down, for example, due to a new contract agreement with a supplier, new legal obligations around health and safety, or inflation.

Can you provide a description of the service listed in my letter? 

A description of the services you pay for are included in your Annual Variation Notice and Year End Statement. You can also find a description of services on our website here.

What are service and maintenance charges?

These are for items in communal areas that need regular maintenance, such as fire doors, door entry systems, CCTV and lifts.

What is ‘usage charge’?

A ‘usage charge’ is used for the cost of smaller items of equipment for customers use, such as furniture and furnishings. We charge customers the cost of an item over the estimated lifecycle of the item, and we will only replace it when required. Sometimes this may be before the end of the estimated life cycle and at other times, after the end of the period. The ‘usage charge’ is calculated partly on the basis of life cycle and partly based on the agreed inflation index.

What is an ‘administration fee’?

This is a 5% charge which covers the cost of delivering the services to your block and external communal areas.

What are ‘management overheads’?

This is a 10% charge to cover management and supervision of services to your block and external communal areas.

Can I get any help towards my service charge?

You may be able claim for the services charges listed under ‘Eligible for Housing Benefit and Universal Credit’. Please contact your local authority for more information.

If you are facing challenges as a result of the cost-of-living crisis. Help is at hand. Please visit http://www.riverside.org.uk/letstalk for more information.

Can I opt out of some of the services, for example I never use the garden?

The services provided are a condition of your agreement.  You cannot opt out of the service.

What if I believe the service charges are unreasonable? 

Please email [email protected] about your concerns on the proposed service charge.  We will review your feedback and respond. You can also write to us at ‘The Riverside Group Limited, 2 Estuary Boulevard, Estuary Commerce Park, Liverpool L24 8RF’.

I am not satisfied with the level of service provided by the contractor. What should I do?

You can raise a concern over the service via our Customer Service Centre.  You can make a formal complaint if you feel we’ve not adequately responded to your concern.