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 owners bear it all.
Related terms
- 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.
- Common area
The parts of a building shared by all occupiers — lobbies, corridors, lifts, car parks — whose upkeep is funded collectively through the service charge.
- Facilities management
The management of building services and infrastructure to support occupiers.