The laws under the spotlight are: Commonhold & Leasehold Reform Act 2002 (CLRA); the Service Charge (Consultation Requirements) (England) Regulations 2003 and Section 20 Landlord and Tenant Act 1985.

The two problems are that not all property mangers understand Section 20 consultation, which is a fundamental part of their job; and neither do tenants, which means in some cases landlords get away with recovering sums that are not properly due. For the purpose of this article it is assumed that the qualifying works were undertaken after 31/10/2003.

Knowledge is key

In a nutshell, landlords must consult with tenants if they are: -

• Undertaking qualifying works on the building
• Qualifying works are those which exceed an amount which will result in the tenant making a contribution of more that £250.
• Entering into a qualifying long term agreement (QLTA) for a term of 12 months, resulting in a tenant being required to pay more than £100.

The consultation process is not onerous. However it does require some advance planning and meticulous record keeping and this is where some property managers and landlords foul up.

These are the steps:

• Landlords must supply the tenants with at least two estimates of the costs and must try to include an estimate from the tenants nominated contractor if one was put forward.

• The landlord should invite observations from the tenants and wait for a further 30 days for a reply. The landlord is under an obligation to have regard to the comments of the tenants but does not have to act according to them.

If a landlord has not followed the process correctly, it may well be the case that payment is not due.