Who is typically responsible for setting the amount of service charges?

The property management company is typically responsible for setting the amount of service charges. This responsibility stems from their role in managing the day-to-day operations and finances of the property on behalf of the landlord and the leaseholders. The property management company assesses the costs associated with maintaining the property, such as cleaning, maintenance, insurance, and other communal expenses, and then calculates the service charges based on these expenses.

The process usually involves creating a budget that estimates the annual costs, which is then communicated to leaseholders. While leaseholders have a say in some aspects of management, it is the property management company that compiles the data and presents the service charges for approval, ensuring they align with the necessary operational costs and conditions outlined in the lease agreements.