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.
What's included in a management fee?
The management fee is for the costs associated with the delivery of services to your home and community. This includes, but is not limited to:
- Managing service charges including calculating charges, administration, accountant reviews, issuing statements, budgets and liaising with customers and resident’s associations
- Managing health and safety, fire and other risk assessments in accordance with statutory requirements and, where necessary, in liaison with the relevant public authorities
- Income collection and debt recovery
- Managing building insurance
- Supervising colleagues including caretakers, gardeners and cleaners
- Managing contractors providing services such as cleaning, lifts maintenance and boiler servicing
- Staff visits to homes to carry out checks and dealing with minor repairs
- Managing and providing responses to enquiries from customers
- Communicating changes to legislation with customers
- Office costs and salaries relating directly to manging service charges and delivering services
How do we calculate management fees?
We’ve continued with the method of applying a management fee based on the property type and size of building. This fee is fixed for the year and will not vary as it would have done with a management fee based on a percentage of the other services. This follows the best practice advice as set out by the Royal Institute of Chartered Surveyor (RICS) and The Property Institute (TPI).
The management fee has been recalculated in 2026/27 as we were not recovering enough of our management costs. We need to recover these costs to ensure that we can still provide the services to keep our buildings safe. The management fee in 2024/25, and 2025/26, was not recovering our full management costs and we’ll continue to review our management fee so that we’re recovering all of the relevant management costs.
Find out more in our FAQs about service charges.