What are management fees?
There are different types of management fees. You may be charged for management fees because of services and repairs provided by a third-party contractor. It could be that we are providing these services, as well as producing service charge estimates and statements, and all the associated overhead costs.
There is also a 5% administration fee on the management company costs to cover our admin costs in processing and billing.
What's included in a management fee?
Management fees are part of the cost of delivering services to your home and estate. These are defined by the Royal Institute of Chartered Surveyors (RICS) and the Property Institute (TPI), and include (but aren’t limited to):
- Managing health and safety, fire and other risk assessments
- Managing building insurance
- Supervising colleagues including caretakers, gardeners and cleaners
- Managing contractors providing services such as cleaning, lift maintenance and boiler servicing
- Visiting buildings to carry out checks and dealing with minor repairs
- Managing service charges, including calculating charges, sending out statements and collecting payments (this includes office costs and salaries relating directly to managing service charges)
- Answering customers’ queries on service charges and communicating updates.
Why am I being charged both a managing agent fee and a Hyde management fee?
Managing agent fees are the costs for having a managing agent oversee your services. Our management fees cover overheads and administrative costs such as dealing with billing and producing your service charge estimates and statements.
What happens if I have a managing agent?
Where there is a managing agent in place, they may be responsible for providing the service and then recharging us for this work. We will then include this as an item on your statement, as a managing agent cost.
How do we calculate management fees?
The management fees we charge for most of the homes we own or manage are based on the size and type of building and estate, and the services we provide. This ensures you pay the correct amount each year and is in line with best practice from the RICS and TPI.
We’re a charity and don’t make a profit on the fees we charge; we simply pass on the costs of delivering services. We always aim to provide value for money and welcome feedback from customers on their services, so we can improve them.
Have another query about your service charges? Find out more information on our FAQs about service charges.