One of the problems with Estate management is that service charges are generally under estimated and management companies fail to reveal their charge rates unlike accountants, solicitors and surveyors who inform of an hourly rate and in some cases estimate particular issues in hours and rate for a total cost. Estate projects have to be extras because the service charges are generally inadequate. Also Estate management charges of 15% of project costs as extras including consultant project coordination charges generally 10% of project costs. So total coordination costs could be as much as 25% of project costs. So there is a great problem, particularly for sole Leasehold Estates where everyone complains about nothing being achieved. Leasehold share of Freehold Estates are in a better position and able to adjust their service charges, assuming the management is ‘in house’ and property owners are realistic with costs and are able to accumulate funds. If management is outsourced to external companies there is a problem as most companies are located well away from the Estates they are managing and need to build into their costs travel time and petrol. If the Estate is regularly visited by management that takes up man hours. You will not be able to find me a management company who can inform of hourly rate and estimated hours which should give total estimated costs. If the truth be known there are a lot of people who cannot really afford to live in a flat.
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