Increase in service charge

[cpio]

It didn't go up 38% - the waste charge is now included in the service charge fee. So it's closer to 28%.

The main reason the service charge went up was because increased insurance costs and a bigger allowance was budgeted for building repairs. This was approved by a majority of owners at the AGM. I personally have a feeling we should be putting even more aside for future building repairs.

Remember this is OUR company and OUR money. If the budget doesn't get used up fully this year it will remain in the bank for when it does need to be used. Many other apartment complexes have been putting money aside into a buildings fund for years - but because WS was so poorly managed in the early years (stupidly low service charges prior to taking over PPM acting as agents, and subsequently WPM taking over from them) we were really quite broke.

[Anon01]

Hello Cpio,

Firstly I'd like to thank whomever started the forum, I too do not live there (had to leave in the recession) and think it could be very useful. I want the best for the development of course as it is my property (and in -ve equity).

I was very dissapointed with the large jump in annual service charge, for me it was amost 600e. The explanation was brief. I could not understand why WPM did not shop around when the insurance premium jumped by such an extreme amount? If my car insurance increased by 100% I would shop around....

[cpio]

I asked David Wallis about the insurance. The current insurers put it up to something like over 30K because of recent claims. He did shop around and he used a broker to find the lowest price which was less than half the price of the incumbent insurers' quote. I think WS has now since moved to this new insurance company.

[Anon01]

Thanks cpio. I guess they ran out of time to move supplier before renewing it. At least we can expect service charge to drop next year with the new supplier...

[cpio]

Yes, fingers crossed if there is a cheaper policy available next year it will be chosen. If anyone here has contacts in the insurance industry or is a broker I'd suggest you to get in touch with Wallis so he can have more options next time around.

[Admin]

Thank you for the info. I hope everyone is more enlightened as the letter was very brief. Shame WPM did not shop around before paying annual renewal of block insurance.

If there are other topics for discussion, anyone can post it. Or ask me to begin one. Best regards

[cpio]

He did shop around though (see post #3 above). If he had not, insurance would have been about 20K higher.

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