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Management fees for L&Q tenants

If you pay a service charge, it will include management fees. These fees help towards the costs we incur delivering services to you, your property and scheme. The costs include paying for the staff and departments at L&Q who make sure you receive the best standard of service. Our right to charge management fees is set out in the terms and conditions of your tenancy agreement.

In previous years, we have worked out the management fee as a straightforward percentage of the value of other services, excluding depreciation costs. The standard rate was 15%, dropping to 10% for properties where all services are provided via a third party. Because management fees were always in line with the cost of other services, this meant that some residents fees were very high. We have improved how we will charge management fees in 2016/17. Our aim is for them to be a more accurate contribution towards our running costs and represent the best value for money. You may now see two entries on your service charge statement:

L&Q admin fee This is a fixed amount of £52 per year, or £1 per week, which contributes towards our central services, for example Human Resources, IT or Learning and Development. This fee does not change in accordance with any other expenditure and remains constant for the year.

Management fee This is similar to previous years, based on a percentage of other service costs, for example, communal cleaning, grounds maintenance or bulk refuse. The amount contributes towards your neighbourhood office expenditure. The percentage rates are lower than in previous years 10% for L&Q managed homes and 5% for homes managed by third parties.