Service Charge & Rent Payment Update
EVC Property Management regularly receive legal updates from KDL Law www.kdllaw.com and others so that we can keep up to date with current issues.
KDL Law have been asked several times about the situation in relation to Rent and Service Charge recovery for long leases and estate charges throughout this Covid-19 period and the newly imposed lockdown.
The position is that as managing agents acting for management companies, we still have to provide services in accordance with the management obligations. That means the property owners and residents need to continue to pay their rent and service charge when they fall due in accordance with their agreements.
There has been a lot of misunderstanding and unfortunately Government offered no protection for those who pay Ground Rent or Service Charges.
In addition, leaseholders believed courts and tribunals were closed or not processing claims. They have remained open albeit with some delays
Are there any issues obtaining payments?
Back in May 2020 Nigel Glen, CEO of the Association of Residential Managing Agents (“ARMA”), reported that nationally there had not been a significant increase in the amount of service charge arrears reported by its professional membership (around 5% in all), although that did fluctuate regionally with, at the time, those agents in the north of the country reporting higher arrears than those in the south.
KDL confirm in their legal update, and following their discussions with agents, landlords and management companies over the last 9 months, that they are hearing much the same. EVC Property Management have had no issues collecting rent and only a handful of service charge payers have contacted us stating that Covid-19 has affected their ability to pay.
Rents or Service and Estate Charges should not remain unpaid and there is nothing to prevent recovery where, for whatever reason, those charges continue to be unpaid. If a reasonable and practical arrangement cannot be made with the defaulting owner, then enforcement steps can and absolutely should be taken in almost every case.
If you would like to discuss further please call us Emma on 07890 693 906