Service charge guidance

These expectations aim to ensure that landlords handle service charge enquiries and complaints effectively, transparently, and fairly, maintaining good relationships with residents and avoiding unnecessary disputes.

It emphasises the importance of clear communication, timely responses, and proactive management by landlords to maintain trust and satisfaction among residents.

Clear communication 

• provide clear, transparent information about service charges, including landlord authority to claim the charge under the tenancy agreement or lease and whether charges are fixed or variable
• supply clear documentation about service charges at tenancy sign-up or during the conveyancing process
• present service charge information, including summaries of costs and certificates, in an easy-to-understand format 

 Enquiry responses 

• respond to enquiries promptly, following the landlord's policy on response times
• requests for additional information, such as invoices should be considered as per the Landlord and Tenant Act 1985
• if there is a separate freeholder or managing agent, request invoices from freeholders or managing agents and provide their contact details to residents so that they can make their own requests 

Services standards

• when services are provided at estate or block level, conduct regular and ad hoc spot checks to ensure service standards and completion of works
• maintain records to evidence service standards, this may include notes and photographs as evidence
• where residents raise concerns about the standard of service, landlords must demonstrate the service is chargeable under the lease or tenancy agreement and evidence the standard of service was satisfactory  

Complaint handling 

• respond to complaints and enquiries within the timescales set out in the landlord's policy and the Complaint Handling Code.
• aim to resolve complaints at the first stage and keep residents informed throughout the process.
• provide specific, accurate, and consistent responses, making reasonable adjustments when requested
• consider whether a charge is permissible by law even if the agreement allows it
• ensure the process of notifying residents about charge increases is correctly followed and evidenced.
• refund any overcharged amounts promptly without attaching conditions. 

 Transparency and accountability 

• maintain transparency in decisions, policies, and actions affecting residents. 
• clearly document the rationale behind decisions and provide this information to residents upon request 
• accept responsibility for mistakes and take corrective actions to prevent recurrence 

Learning from outcomes 

• use feedback from complaints to improve services. 
• implement changes that enhance the overall quality of service delivery and resident satisfaction

Residents can read the guidance provided to understand what your landlord must do and what the Ombudsman can do in relation to service charges.

Understanding service charges 

• residents should familairise themselves with the details of their tenancy agreement or lease, particularly the provisions related to service charges 
• they should be aware of the difference between variable and fixed service charges and understand what types of charges they might be subject to 

Communication

• residents should expect clear and transparent communication from their landlord about any service charges. This includes explanations of the charges, what they cover, and any changes to the charges 
• be proactive in seeking information and clarification about any service charges they do not understand 

Complaint process 

• residents should use their landlord’s internal complaint process as the first step if they have issues or disputes regarding service charges 
• they should document their complaints and any communications with their landlord for reference in case the issue needs to be escalated 

Contacting the Ombudsman 

• if the landlord's internal complaint process does not resolve the issue, residents can bring their complaint to the Ombudsman. 
• residents should be aware that the Ombudsman can investigate complaints about the communication, transparency, and fairness of service charges, but not the level or amount of the charges themselves 
• legal advice may be required if a residentc concerns involves complex legal questions or requires a binding decision that the Ombudsman cannot provide