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 does a Hyde management fee cover?
Management fees generally cover overheads and administrative costs such as processing and billing.
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 is my management fee charged?
In the past we’ve added a 15% flat rate to service charges, as a management fee. From March 2023 we’re changing to a fixed fee based on actual costs incurred. This method is recognised as industry best practice, including by the Royal Institute of Chartered Surveyors (RICS).
Unlike other charges that have adjustments at the end of the year, the amount that you’re quoted in your estimate won’t change. This simplified approach will give more certainty and help with budgeting.
We’ll review the figure annually and will let you know of any changes in the future, but it will not change between your estimate, and your actual statement. Remember also that the management fee will only comprise of the reasonable costs and overheads that we incur in operating and managing the services provided to your home and estate.
Have another query about your service charges? Find out more information on our FAQs about service charges.