What to Review Before Approving a Service Charge Budget

Before approving a new service charge budget, property owners and directors must conduct a thorough review to ensure compliance and financial transparency. This process includes examining reserve fund planning, major works proposals, Section 20 consultations, and fire risk assessments to safeguard your building’s operation and residents’ safety. Our guide highlights essential checks within block management, supported by RICS accredited principles, to help you make an informed decision with confidence.

Validate assumptions and occupancy data

Ensure the budget aligns with current occupancy levels and anticipated changes. Accurate assumptions are crucial to prevent financial shortfalls. Review any discrepancies with past data to understand variances.

Accurate data is vital for informed decisions; next, consider procurement processes.

Procurement, contracts and SLAs

Review all contracts and service level agreements (SLAs) to confirm they deliver value for money. Ensure that procurement processes are transparent and competitive, providing the best services for your property.

A clear procurement strategy leads to well-managed finances; now, explore compliance checks.

Compliance and statutory duties (BSA, FRA, lifts)

Ensure compliance with statutory obligations, including the Building Safety Act (BSA) and fire risk assessments (FRA). Regular audits and compliance checks will safeguard residents and protect your investment.

Compliance strengthens property management; consider how Temphis supports this.

Take the essential step to secure your property's future. Review these vital areas to ensure a sound, transparent budget. Contact us for expert guidance in navigating your service charge budget today.

P.S. Remember, a proactive review can prevent costly mistakes down the line.

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