Mid-year review: the essential checks before your next service charge budget

As we reach the midpoint of the year, it’s crucial for freeholders and RTM companies to conduct a thorough mid-year review before preparing the next service charge budget. This check-up ensures compliance with the Building Safety Act, fire safety regulations, and Section 20 requirements, while keeping a close eye on arrears management, reserve funds and the long term maintenance plan (LTMP). In this newsletter, we outline the key steps for RMC directors and estate managers to maintain control over block management, safeguard asset performance and avoid budget variance, helping you approach the upcoming budget cycle with confidence. Here's what to focus on now:

Why a mid-year review matters

A mid-year review provides an opportunity to reassess your financial and operational strategy. By addressing issues now, you can avoid unexpected costs and ensure your building’s financial health. This proactive approach supports more informed decision-making for the upcoming budget cycle.

Taking these steps will help you identify areas of improvement and ensure a smoother financial year ahead.

Financial health check (cash, arrears, variances)

Assess your current financial position, including cash reserves and arrears. Highlight any variances from the planned budget to better understand the root causes and address them proactively. This insight is crucial for setting realistic expectations for future financial planning.

Understanding these figures now allows you to make any necessary adjustments before they impact the next budget cycle.

Compliance and building safety status

Ensure your compliance records are up-to-date, focusing on building safety and fire regulations. Regular reviews can highlight any gaps or risks that need immediate attention. This approach not only safeguards residents but also strengthens governance and trust with stakeholders.

By prioritising compliance, you protect both the building and its occupants while maintaining trust.

Act now to ensure your building is in excellent financial and operational shape. Share this newsletter with your colleagues or contact us for expert guidance.

P.S. Stay ahead of the curve—review your mid-year financials and compliance status today.

Contact the Temphis team to explore how we can support your and your needs