We've brought together answers to the questions residents ask us most often about service charges.
Whether you'd like to understand how your charges are worked out, why costs can change from year to year, what your statement means, or what support is available if you're struggling to pay, you'll find helpful information below.
If you can't find the answer you're looking for, please get in touch and we'll be happy to help.
A service charge is a payment you make towards the cost of maintaining and managing the shared areas and services at your building.
This can include services such as communal cleaning, lighting, grounds maintenance, and repairs to shared areas.
At the start of each year, we estimate how much services are likely to cost. We use information from previous years and details provided by our contractors and suppliers. For example, we might use previous electricity bills to help us estimate how much lighting in shared areas might cost for the year ahead.
You pay service charges based on these estimated costs throughout the year (usually from 1 April to 31 March). After the year ends, we compare what we estimated services would cost with how much they actually cost us. This helps us make sure service charges are fair and accurate, so residents only pay for the services provided.
The total cost of each service is then shared between residents. The amount you pay is based on the terms of your lease or tenancy agreement.
Your End-of-Year Service Charge Statement compares:
What we estimated services would cost
What services actually cost at the end of the year
It explains whether there’s a difference between the estimate and the final costs, helping you understand how your service charges have been worked out.
We need to wait until we receive our final invoices from our contractors and suppliers before we can calculate the final costs. This means it can take several months after the end of the financial year on 31 March before we can provide you with a statement.
An overpayment means you've paid more in service charges than the services actually cost.
For most tenancies, you don't need to contact us. The credit will automatically be used to reduce your service charge for the following year.
An underpayment means the amount you paid for service charges over the last year was less than the services you received actually cost.
For most tenancies, this difference will be added to your service charge for the following year, in line with your tenancy agreement.
You don't need to do anything unless you'd like to talk to us about the charge.
We do our best to estimate costs as accurately as possible, but some costs can change during the year. For example, energy and water prices may go up, contractors may charge more, or additional repairs may be needed.
We use this information when we set future service charges. This may mean charges increase in future years, so they more accurately reflect how much the actual cost of the services we provide where you live.
We only charge for the services we provide and aim to keep charges as fair and accurate as possible.
We can't produce your statement until we've received all the final invoices from contractors and suppliers.
Some invoices arrive several months after the end of the financial year on 31 March, so we wait until all costs have been confirmed. This helps make sure your statement is correct and reflects what was actually spent.
Sometimes, we aren't able to confirm all costs within 18 months because we're still waiting for final invoices or information from contractors and suppliers.
If this happens, we may send you a Section 20B Notice. This tells you there’s been a delay and that some costs will be confirmed and charged later.
You'll find more information about Section 20B Notices on our Your Rights page.
If you think you're being charged for a service you don't receive, please contact us.
We'll check the information, explain the charge and investigate further if needed.
Before getting in touch, you may find it helpful to check our full list of service charge descriptions.
Some service charges can be covered by Housing Benefit or the housing costs element of Universal Credit, but not all of them.
Benefits usually help with the cost of essential shared services, such as:
Communal cleaning
Lighting in shared areas
Caretaking services
They don't usually cover charges for personal services inside your home, such as personal heating, TV services or other individual services.
If you're not sure which charges can be covered by benefits, please contact us or your benefits provider.
Even when the services you receive don't change, the cost of providing them can increase.
This may be because:
contractors charge more
energy and utility costs have gone up
repairs and materials cost more over time
Inflation has affected prices
We review charges each year to reflect these costs as fairly as possible. We only charge for services that are provided and try to keep costs as reasonable as possible.
Service charges are based on the services available to your building or estate, rather than how often individual residents use them.
For example, all residents may contribute towards the cost of a lift, CCTV or electric vehicle charging points because these are shared facilities that benefit the building as a whole.
The services you pay for are set out in your tenancy agreement.
Service charges are shared as fairly as possible, but not everyone pays the same amount.
This can be because:
tenancy agreements can be different
some charges are fixed and others change each year
tenancies may have started at different times
Many estates have a mix of different tenancies, which are charged in different ways
We can't discuss another customer's charges, but your tenancy agreement explains how your charges are worked out. If you’d like help understanding this, please get in touch and we’ll be happy to help.
This charge doesn’t cover your regular household bin collections.
It mainly covers the cost of bulky waste removal and clearing fly-tipping from shared areas. We have a responsibility to keep communal spaces safe, clean and clear of waste.
To help keep service charges down, we encourage residents to use Manchester City Council's bulky waste collection service, which includes one free collection each year (up to three items). Find out more on Manchester City Council’s website.
Some services are only needed occasionally, so it’s not always possible for us to know the cost in advance.
If we don't expect a cost when setting the budget, the estimate may show £0. If the service is then needed, the cost will appear in the actual costs on your year-end statement once the work is complete or the service has been provided.
You only pay for services that are provided to your home, block or estate. The administration fee covers the cost of arranging and managing the services provided where you live. Southway does not make a profit from service charges.
The fee helps cover things like:
managing accounts and billing
customer support and repairs administration
Block or estate visits and inspections
managing contractors and suppliers
health and safety checks and compliance
The administration fee is usually 10% of the total service charge.
If you think a charge is incorrect or would like us to explain it, please contact us first. We'll review the charge with you, explain how it has been worked out and investigate any concerns you raise.
If you're not satisfied with our response, you can make a formal complaint through our complaints process.
You may also have the right to apply to the First-tier Tribunal (Property Chamber). The Tribunal is an independent organisation that can make decisions about service charges and other disputes between residents and landlords.
You can find more information in the Summary of Rights and Obligations included in your End-of-Year Service Charge Statement, on our Your Rights page or on the Government's website.
If you're unhappy with a service provided by one of our contractors, please contact us to let us know.
We'll look into your concerns and work with the contractor to put things right where needed.
If you're still unhappy after we've responded, you can make a formal complaint through our complaints process.
If you're worried about your service charges or finding it difficult to pay, we’re here to help.
We can refer you to our friendly Advice team, who can offer you free and confidential support with debt, bills and budgeting, food support, affordable loans, plus access to employment and training opportunities.
Visit our online Cost-of-Living Support Hub to see what support’s available to you. You can also contact us and we'll be happy to help.
