Property Issues – Landlord and Tenants

Landlords and managing agents should be reminded to consider consulting with tenants before entering into contracts to provide services or carry out works relating to residential properties. In a recent High Court case, a management company entered into a 25-year agreement with a third party service provider to provide maintenance services for flats without consulting the tenants. The court decided that the management company could only recover a maximum of £100 from each flat tenant per year. This checklist explains what a service charge is, when consultation is required and what the penalties are for failing to comply with the consultation requirements.