The annual forecast of costs for running and maintaining a building's common parts, apportioned among tenants; it sets the on-account payments later trued up against actual spend.
Related terms
- Service charge reconciliation
The annual comparison of budgeted versus actual service-charge costs.
- Sinking fund
A reserve built up over years from service charges to fund major future capital works such as roof or lift replacement, spreading the cost so no single year's…
- Tenant retention
Efforts to keep existing tenants, reducing voids and re-letting costs.
- Arrears
Rent or service charge that is overdue and unpaid; tracking and recovering arrears is a core asset-management KPI, especially where tenant covenant strength is…
- Asset management
Executing the strategy to maximise a property value and income over the hold.
- Building management system (BMS)
The centralised control system that monitors and automates a building's HVAC, lighting, and energy use; the primary tool for driving operational efficiency and…
- Business plan
The asset-level strategy setting out how value will be created over the hold period.
- Capex
Capital expenditure - spending on improvements or major replacements that add value.