Trafford Housing Trust

Service charge FAQs

What is a service charge?

A Service Charge is a charge payable to your landlord towards the cost of providing and maintaining services in addition to your rent. The Service Charge Statements show you the services that can be provided. They can include things like grass cutting, communal lighting and caretaking services. 

What are Service Charge Statements?

A variable service charge means that every year we review the service charges to ensure you are only charged the actual costs of providing the services you receive. The service charge is based on an estimate of the current years service costs, but as the actual costs become known we can begin to see if the estimate means you have paid too much or that what you have paid may not be enough - and this adjustments will now show on your statement. 

Remember the statement you have just received is for information only. It is not a bill and you do not have to pay anything. All you have to do is keep paying the present Service Charge for which we take this opportunity to thank you for. 

Why September?

Legally we have to send a statement within 6 months of the 1st April. But more importantly THT is giving you the information that helps you understand what you pay for. 

What happens if THT collects too much?

If we collect too much money compared to the cost of providing the service, the extra is used to reduce the amount that THT need to charge - and you will of course pay less for the service over the following year. 

What happens if THT do not collect enough?

If we do not collect enough money to cover the cost of providing the service, the difference is collected from you starting in April and continuing over the following 12 months. 

How are the charges calculated?

The charges are based on the cost to the Trust of providing the service for the previous financial year. This is then divided by the number of properties in the scheme/block receiving the service.

The weekly charge is calculated by dividing the annual charge by 48 rent weeks. 

A 15% management charge is added to the service charge to cover the Trust's overheads for managing the properties. 

The charges on the service charge statement are already paid as part of your weekly rent. The Trust informs you of your new charge each February. 

Do I have to make a payment?

No, the service charge statement is for information only and payment is already collected as part of your weekly rent. 

What do I do if I am on Housing Benefit?

The Trust will notify the Council of the statement position for the current financial year.

You don't need to do anything. If you receive full Housing Benefit and your circumstances don't change, your charges will carry on being paid in full. 

I don't understand the statements

Column 1 lists the services THT provide.

Column 2 lists the weekly charge that THT make for providing the service (including previous year's adjustments/differences).

Column 3 lists the weekly charge that THT make for providing the service (excluding previous years adjustments/differences).

Column 4 lists the charge but gives you the full years amounts (excluding previous year's adjustments/differences).

Column 5 lists what we have spent in the year on providing the services (if the charge is £0 this means you did not get the service) 

Column 6 is the important bit because this column identifies if we have charged you too much, or not enough.

If the figure has a minus in front of it, this means we have not charged enough. 

You do not need to do anything now, but the information will be used to tell you next March what your new charge will be, payable April 2015. 

 

service-charge-statement-sample2014.JPG

 

tenant faq ref hub.jpg

© Trafford Housing Trust Limited.

Registered in England and Wales Reg No 04831118. Reg Office: Trafford Housing Trust, Sale Point, 126 - 150 Washway Road, Sale, M33 6AG.
Charity Reg No 1106967; Registered by the Homes and Communities Agency. No. L4440; VAT No 854 7727 85.

Accreditations