Why has the L&Q management fee changed?
In previous years, we charged 10% of your total service cost as our management fee plus a small fixed fee.
Using this method, your annual fee would change depending on what services you received and how often we provided them.
For example, if one year we did a lot of extra unplanned repairs on your estate, your management fee would be higher than you expected (and higher than the estimate we sent you at the start of the year).
So, from 1 April 2020, we are changing the way we calculate your management fee so that it is proportionate to essential activities that we do to manage and provide you with services.
This includes a contribution to IT equipment, human resources and legal services.
The management fee also covers the costs involved in calculating and billing your service charge and managing the services provided to your property.
Importantly, your management fee will be fixed. This means you will know exactly how much the management fee will cost every year.
We think this is a fair and consistent approach, and this is best practice according to the Royal Institute of Chartered Surveyors.