Management Fees

The OBHA Independent Leaseholders Group

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It is that time of year when our doormats resound with a tumultuous thump of the OBHA ‘service charge’ letter, and this time we have been hit with yet bigger percentage charges. Last year we reported of the increasing service charges up to 24.3%, this time we can report charges of 26.1% at Rutland Gate and 22.18% at Erith Road. We have taken a broader look across the estates and produce a chart for your perusal. So what do we do? Lie down and stick our collective legs in the air and allow our landlord to get away with this? NO! We must formally challenge Orbit with these outrageous charges. We haven’t been formally consulted upon the new ‘fixed’ service charge and to see this grow beyond last year’s figure is well beyond a joke! The chart below gives you an idea just what figures are involved and it’s no use Orbit trying to justify that they have to charge this amount to cover their expenses; what they should be doing is justify the service charge vis-à-vis an inadequate service!

In the commercial world a company couldn’t arbitrarily charge a client what they think they can get away with to “Cover the Costs”, they would have to see where costs could be cut, cut out the dead wood so to speak and concentrate upon delivering a true quality, cost effective service! All we have witnessed is a continuation of poor delivery on a range of services. Having said that, due to our continued pressure we are at last seeing evidence that OBHA are trying to tackle their inadequacies that we ‘Leaseholders have to pay for!

It could well be argued (on certain estates) that Orbit are bringing in lower services charges and that's why the management fees appear to be exceptionally high, there is of course a counter argument which is, 'That's exactly what they are paid to do'! and that is to keep our service charges as low as they can whilst delivering 'Best Value'. But we haven't been consulted on the 'fixed' management fee charge, once again this highlights the complete lack of communication with 'Leaseholders.

To see the percentage charge increase year on year is worrying for all and the chart below, although a snap-shot of estates, shows an erratic display of financial management, especially in the case of Hurstwood Ave who have witnessed a massive increase in service charges for 2007/8 which makes the percentage figure almost acceptable. We think not!

Estate

Estimate cost/Management fee 2006/7

Estimate cost/Management fee 2007/8

% cost 2006/7

% cost 2007/8

Rutland Gate

£257.00/£62.50

£248.95/£65.00

24.3%

26.11%

Erith Road

£272.82/£60.50

£260.44/£65.00

22.18%

24.96%

Riverside

£684.01/£82.00

£670.77/£85.00

11.99%

12.67%

Hurst Place
(De Luci  House)

£346.58/£62,50

£349.02/£65.00

18%

18.62%

Albert Road

£378.99/£62.50

£262.36/£65.00

16.49%

24.77%

Hurstwood Ave

£206.96/£62.50

£363.92/£65.00

30.2%

17.87%

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