Rent and Service Charge Setting Policy

10.1   

In addition to their rent, tenants may also pay service charges. Service charges pay for additional services which may not be provided to every tenant.

10.2    

The council has adopted the principle of recovering the actual cost of services provided. Tenants will only be charged for the services they receive. Tenants cannot opt out of any service provision or charge. Any offers of accommodation will clearly identify service charges attached to the property and the amounts involved.

10.3

Service charges are not covered by the same government guidelines as rent. However, the guidelines are that service charges should be set on a reasonable and transparent basis and should reflect the service provided.

10.4     

Where new or extended services are to be introduced or where it is proposed to significantly alter an existing level of service, the council will consult with those affected using established consultation methods.

10.5     

In calculating service charges, the council will:

• set reasonable and transparent charges which reflect the actual cost of providing the service
• base charges on the actual expenditure for the previous year plus estimated inflation for the relevant type of charge
• identify service charges separately from the rent
• ensure savings and efficiencies resulting from a reduction in the costs of services are passed onto tenants
• make no allowance for potential void properties to ensure tenants are not penalised for low occupancy