The Ins and Outs of Service FeesService fees will be common for those living in an apartment, as they play a role in how the building is taken care of and maintained. . Service charges are considered the only measurable and manageable way to cover building maintenance costs. If you live in a converted home, chances are you won't have to pay a monthly service charge, but in some cases you may be asked to pay these charges either quarterly, semi-annually or annually. The purpose of the service charge is to cover general repairs, regular cleaning and the employment of certain building staff. In some cases the service charge may cover the building's insurance, but this is not always the case and you may need to check with the landowner to see if this applies to you. Service charges are generally non-negotiable and you will have to pay them whether or not you use the building services. Cost Details of how much you will pay in service charges should have been detailed to you before you moved in. However, if you are unsure of what you are paying, check your lease or speak with your landowner. Either should be able to clarify the following: - What services you are paying for - When service fees are due - How service fees are collected - How service fees are calculated and allocated - Whether or not there is a reserve or sinking fund in place Your lease will most likely have a sweep-out clause, this will be a term that covers general services that are not mentioned or detailed in the lease agreement. Not all rental agreements have this clause and if they do not, you cannot be held responsible for services that are not strictly detailed. Service charge costs may vary from year to year, this...... middle of paper ......r may take you to court over this and an eviction notice may even be notified to you. However, for the landowner to obtain a court decision, he must follow a special procedure called the forfeiture procedure. Reserve or Sinking Fund As a precaution, some tenants pay repair costs into a separate fund in addition to their regular service charges. These funds are called “sinking funds” or “reserve funds” and serve as a reserve in the event of a large repair bill. For this fund to be effective, it must be paid regularly over an extended period of time. Remember, if you sell your home before a payment is required, you are unlikely to receive any of your money back. Payment to such a fund is only necessary if indicated in your lease. If you feel the time is right to create one, speak to an attorney or law firm for information on how to proceed...