A service charge budget is a financial plan that outlines the anticipated costs associated with the management, maintenance, and upkeep of leasehold properties, particularly those comprising multiple flats or units. This budget is typically prepared annually and serves as a crucial tool for property managers and leaseholders alike. Key components of a service charge budget include:
For a property manager understanding the service charge budget for a development under management is incredibly important. Not only will the budget provide you with a a target within which to financially manage the property, but it will list out the services that you need to provide and, importantly, the tenants will be expecting you to provide.