Cribs Estates Ltd
Enquiry form
Phone
WhatsApp
Back to the blogs list

Who Pays Service Charge: Landlord or Tenant?

Landlords Tenants
Posted in   Apr 11 , 2025
Who Pays Service Charge: Landlord or Tenant?

Whenever you need to rent a property in the UK as a tenant or a landlord, there is always a common question that circles in your head: who pays service charge landlord or tenant? There is an increase in the number of flats and properties on lease within the country, especially in major cities like London, so it is important to know the exact service charges that both parties will bear. Such charges keep changing, creating confusion in minds, so the best way is to define every term in the tenancy or the lease agreement. Here’s a brief about what exactly this is about:

What Is a Service Charge?

As the name suggests, landlords collect a fee to cover all the costs of maintaining the services of the property or the building. It includes all cleaning of staircases, and the maintenance of lifts, security, gardening, and other basic services, such as heating and lighting. For the flats, the service charges may also mean the insurance of building and management fees or other repair funds. However, it may need to be figured out by both parties as to who will be responsible for the charge: the landlord or the tenant? 

Does the Landlord or Tenant Pay?

It all comes down to the type of tenancy agreement you have. When discussing leasehold property, the agents charge the landlords or leaseholders for the services. In many cases, the landlords pass these service costs to the tenants. As per the Assured Shorthold Tenancy (AST), if the agreement already specifies that tenants are responsible for charges, they are legally bound to do so; however, if it’s not specified, landlords will have to cover all the service charges themselves. 

Is the Service Charge Included in the Rent?

Oftentimes, we have seen the landlords add these service charges within the monthly rent so that tenants don’t feel they are giving anything extra other than rent. This approach is very common in single-let family properties, but landlords take service charges separately in larger living places like blocks or flats. Due to the nature of work in the building, the tenants get a breakdown of the invoices that reveals the charges. If you are a tenant, you should ask upfront whether the service charges are included in the rent. If they are not, you should get a clear idea of the expected cost and what it will cover. 

Understanding the Tenant's Rights

Under the Landlord and Tenant Act 1985, tenants can request a written account summary and even inspect the documents to determine whether the charges are accurate. For example, if a tenant pays £ 130 in monthly charges, they are entitled to know where every penny is spent, whether on cleaning, gardening, maintenance, or lift repair. Disputes or trust issues can be avoided if landlords are transparent about these charges. 

What About Variable Service Charges?

Variable service charges are another essential aspect, as they change yearly depending on costs. Tenants will pay higher charges with each passing year unless a fixed rate is decided at the start of the agreement. Landlords must highlight this aspect in the agreement to avoid misunderstandings, as not explaining it could raise questions in the tenant's mind. 

Disputes and Misunderstandings

When the tenants feel like they are not getting the quality of services against the monthly charges they pay, for example, if the lift of the building is frequently out of service or the cleaning is not regularly done, the tenants start to question the service charges and the work done against them. When such cases happen, the landlords or the estate agents working on their behalf act quickly to resolve the communication gap and any problems to avoid legal complaints or court proceedings. 

Who Pays Service Charge Landlord or Tenant? The Clear Answer!

Coming back to our actual question, the answer is always the tenancy agreement. If the agreement states that it will be the tenants' responsibility, they must pay. If it’s the other way around, landlords must cover the expenses. It also highlights how important a well-written agreement is and how the expectations should be decided for both parties. 

Still, some landlords add service charges to the rent to simplify matters and keep the property appealing to new tenants. Others, with more detailed amenities, take a separate approach to service charges. 

How Cribs Estates Can Help?

Cribs Estate specialises in understanding and acceptably managing the service charges to tenants and landlords. We offer a complete property management service that handles all the aspects for you, including tenant questions, communication, and handling the management work that needs to be done in the building, whilst informing both parties about tasks completed.

The professional support we offer landlords will help them avoid mistakes whilst allowing them to focus on growing their portfolios. Whether new to the property rental market or already invested in properties, Cribs Estates is always ready to make their processes simple and stress-free whilst giving them peace of mind.


Shared on social media

Comments


Enquiry form

Title
First name*
Last name
Phone*
Email*
Enquiry details
  
Send Enquiry

Latest Blogs

Managed Move Housing: Eligibility, Process and What to Expect

For anyone who is currently facing housing problems, it is always difficult to find somewhere else to live on an urgent basis. It becomes more difficult if you are a council or housing association tenants. Many people have found managed move housing to be a safe way to move when there is a serious housing or safety concern. If you are facing any such issue, understanding how it works, who may qualify, and what to do if your request is delayed can help you take the right next steps.What Is a Managed Move in Housing?A managed move is a transfer arranged by a council or housing association for housing management reasons. It may be considered when a tenant needs to leave their current home urgently or when the landlord needs the property to be vacated for a specific reason.For example, a landlord may consider a management transfer if a tenant faces domestic abuse, serious harassment, threats of violence, or urgent circumstances involving major property works. The exact criteria depend on the landlord's policy.A managed move is not the same as joining a housing waiting list or swapping homes with another tenant. Shelter England's guidance on tenant transfers, management transfers and tenant moves explains these differences.Who Qualifies for a Managed Move?A landlord may consider a managed move in circumstances such as:Remaining in the property may put the tenant or their household at risk.Serious incidents may support a request for an urgent move.The landlord may need the property vacated for major works or another exceptional reason.The landlord may consider situations covered by its own management-transfer policy.These examples do not guarantee approval. The landlord may investigate the circumstances, request supporting evidence, and consider other housing options.If you are in immediate danger, contact the emergency services rather than waiting for a housing application to progress.Managed Move vs Tenancy Transfer vs Mutual ExchangeThese options can sound similar, but the process and reasons for moving are different.Housing optionWhat it meansManaged moveA landlord considers or arranges a move under its management-transfer policy.Tenancy transferA tenant asks to move to another social housing property, subject to the relevant application and priority rules.Mutual exchangeTwo social housing tenants arrange to swap homes, subject to the required permissions.How to Apply for a Managed MoveIf you believe you need an urgent move, take these steps:Speak to your council's housing team or your housing association's housing officer.Request a copy of the management transfer or urgent transfer policy and check the eligibility requirements.Describe why remaining in your current home is difficult or unsafe, including relevant dates and incidents.Depending on your situation, this might include incident records, police references, professional letters or other relevant documents.Find out how the decision will be made, whether further information is needed and when you should expect an update.Save emails, letters, reference numbers and notes of important conversations.The Housing Ombudsman's guidance on applying or moving home explains what residents can ask their landlord and what to do if they have concerns about how an application is handled.Does a Managed Move Cost Anything?There is no standard UK-wide application fee or fixed price for a managed move. The process depends on the landlord's policy and the type of move being arranged.However, moving may still involve expenses, such as transport, packing or other relocation costs. Do not assume your landlord will cover these automatically.Before making arrangements, ask your council or housing association:Whether any fees apply to your particular move.Whether help with moving costs is available.Whether temporary accommodation or other support may be appropriate in your circumstances.Which costs you would be responsible for.Getting clear answers early can help you plan financially while your housing request is being considered.What If Your Application Is Delayed or Refused?Waiting without clear information can add to the stress of an already difficult situation. If your managed-move request is taking longer than expected or has been refused, consider these steps:Find out where your application is and whether anything is outstanding.If your request is refused, ask which policy was applied and why your circumstances did not meet its criteria.Ask whether a review is available and whether you could apply for a standard transfer, join the housing register or pursue a mutual exchange.If you believe your landlord has handled the case poorly, follow its complaints procedure. You may be able to approach the relevant ombudsman if the matter remains unresolved and falls within its remit.A managed move isn't guaranteed, so it's important to understand alternative routes.How Cribs Estates Supports Property ManagementManaged move housing is generally handled by councils and housing associations under their own policies. Cribs Estates does not advertise a service for approving or arranging these transfers.However, Cribs Estates provides residential and block property management services across South London. Its work includes coordinating maintenance, managing tenant communication, supporting property compliance and looking after communal areas and related management responsibilities.

Read more

What Is a Management Pack When Buying a House? A Buyer's Guide

Buying a house can come with unexpected costs and delays. A property may seem affordable, but high service charges, planned major repairs, or restrictions on how you can use it could change your decision. Finding out about these issues late in the buying process can be stressful and costly. This is where a management pack becomes important when buying a house. It helps buyers understand the property's management arrangements, ongoing costs and responsibilities before exchanging contracts.What Is a Management Pack When Buying a House?A management pack is a collection of documents about how a property or its building or estate is managed. It is commonly used when selling a leasehold flat, but it may also be needed for a freehold house with shared facilities or estate charges.For leasehold properties, the pack usually includes replies to the Leasehold Property Enquiries (LPE1) form, completed by the freeholder or managing agent. For some managed freehold properties, different enquiries may be needed.The seller or their conveyancer usually requests the information, and the buyer's conveyancer reviews it. The pack helps everyone understand the property's financial and management arrangements before the sale progresses. GOV.UK explains the information involved in selling a leasehold home.What Does a Property Management Pack Include?The exact management pack contents can change, but the documents may cover:Service charges and ground rent: Current amounts, payment records and any outstanding balances, where applicable.Accounts and budgets: How much it costs to maintain shared areas and how those costs may change.Planned major works: Information about proposed repairs, such as roof replacement or work to communal areas.Buildings insurance: Details of the policy covering the building.Management rules and responsibilities: Relevant restrictions, disputes, fees and requirements that may apply when the property is sold.The LPE1 form helps collect information held by landlords and managing agents, including details about service charges, insurance and certain restrictions. You can read more about the LPE1 leasehold property enquiries form.Why Should Buyers Check the Management Pack Carefully?The main reason to review a management pack is to understand the costs and responsibilities that may come with the property.For example, a flat might appear affordable based on its purchase price and mortgage payments. However, high service charges or planned building repairs could increase the total cost of ownership. If major works are planned, ask your conveyancer what the documents say about the likely costs and who may have to pay.You should also check whether there are outstanding charges, disputes or restrictions that could affect you after completion. If you are buying a leasehold property, the remaining lease length and ground rent terms also matter.A management pack cannot guarantee that there are no problems. It is one part of your checks, alongside the lease, property searches and survey. The government's guide to buying a leasehold property explains why buyers should understand the costs and responsibilities before signing a binding agreement.Who Provides the Pack, and Can It Delay Your Purchase?The seller or their conveyancer generally requests the pack from the freeholder or managing agent. The provider may charge a fee, and the cost and response time vary.If the information arrives late, is incomplete or needs correcting, the conveyancing process can take longer. This can be frustrating when your mortgage, survey and other checks are already underway.To reduce avoidable delays, ask your conveyancer whether the management pack has been requested, whether a fee is outstanding and whether any further information is needed. It is best to start the request early rather than wait until the rest of the sale is nearly complete.Does a Freehold House Need a Management Pack?Not every freehold house needs one. However, some homes on managed developments have shared roads, landscaping, private facilities or other communal areas that require upkeep. Owners may have to contribute towards these costs through estate charges.In these cases, management enquiries can help explain the arrangements and any ongoing payments. Ask your conveyancer which documents apply to the property rather than assuming that freehold ownership means there are no management obligations.What Should You Do If the Pack Raises Concerns?Do not ignore unclear charges, planned works or missing documents. Ask your conveyancer to explain what they mean, whether further information is needed and how the findings could affect your purchase. If the pack reveals a high cost or restriction, get the position clarified before exchanging contracts.FAQsWho usually pays for a management pack?The seller commonly pays for the pack needed to provide management information for the sale, although the arrangements and other transaction fees can vary. Confirm the position with your conveyancer.Is a management pack the same as a property survey?No. A management pack covers management information, costs and responsibilities. A survey assesses the property's physical condition.Can you buy a house without a management pack?It depends on the property and the information required for the transaction. Your conveyancer can explain what is needed and whether missing management information could prevent the sale from progressing.How Cribs Estates Helps with Property ManagementCribs Estates provides residential and block management services across South London, working with freeholders, leaseholders, managing agents and local authorities to help address property management and compliance matters.Our services include coordinating maintenance, managing building-related responsibilities, supporting compliance with relevant requirements and maintaining clear communication. If you need help understanding what is a management pack when buying a house, our team can discuss your situation and explain how our services may help.Find out more about our residential property management services in South London or block management services.

Read more

What Is Section 24 Tax? A Simple Guide for UK Landlords

Mortgage interest used to be deducted from rental income when individual landlords worked out their taxable profit. That changed under Section 24. Individual residential landlords generally cannot deduct their mortgage interest from rental income in the usual way. Instead, they receive a tax reduction based on their finance costs.This can make a noticeable difference to landlords with larger mortgages, particularly those paying higher rates of Income Tax. Here is how the numbers work and what landlords need to know for 2026/27 and beyond.What is Section 24 tax?Section 24 refers to the rules that restrict tax relief on finance costs for individual landlords with residential property. The rules were introduced gradually from 2017 and became fully effective from April 2020. Instead of deducting residential mortgage interest when calculating taxable property profit, affected landlords receive a tax reduction based on their finance costs. The restriction can apply to mortgage interest, certain loan interest and some costs connected with taking out or repaying property loans. It mainly affects individual landlords. UK-resident companies are not subject to the finance-cost restriction in the same way. They can generally claim interest on property loans as an allowable expense when calculating Corporation Tax.How does Section 24 affect your tax bill?The easiest way to understand Section 24 is through an example. Suppose a landlord receives:£18,000 in annual rent£3,000 in other allowable property expenses£10,000 in mortgage interestUnder the current Section 24 rules, individual landlords receive a basic-rate tax reduction for qualifying finance costs rather than deducting the full mortgage interest from their rental income. The property profit before the finance-cost reduction is therefore:£18,000 - £3,000 = £15,000The landlord can then receive a tax reduction based on the mortgage interest. For 2026/27, the basic-rate reduction is 20%, subject to HMRC's rules and limits.So, using the £10,000 finance cost:£10,000 × 20% = £2,000 tax reductionThis does not mean the landlord simply pays £2,000 less tax in every situation. The final calculation can depend on total income, property profits and other factors. HMRC explains that the reduction is subject to limits and cannot create a tax refund.Why does Section 24 affect higher-rate landlords?The important point is that the finance-cost reduction is restricted to the basic rate. For 2026/27, the standard Income Tax rates are 20%, 40% and 45%.So a landlord paying tax at a higher rate does not receive 40% relief on their residential mortgage interest. The finance-cost reduction is calculated at the basic rate. This can create an uncomfortable situation: a landlord may have relatively little cash left after paying the mortgage, but their taxable property profit can still look much higher because the mortgage interest is not deducted in the normal way.Does Section 24 apply to limited companies?Section 24 affects individual landlords differently from companies. A UK-resident company is not subject to the individual residential finance-cost restriction in the same way. HMRC states that companies can generally claim interest on property loans as an allowable expense when calculating Corporation Tax.This is one reason some landlords consider buying properties through a limited company. However, that does not mean a company is automatically more tax efficient. Corporation Tax, taking money out of the company, mortgage availability, legal costs and other expenses all need to be considered.What changes to Section 24 are coming in 2027?There is an important upcoming change that landlords should be aware of.From 6 April 2027, the government is introducing separate tax rates for property income:22% property basic rate42% property higher rate47% property additional rateFinance-cost relief will also be provided at the new 22% property basic rate.This means older Section 24 guides that simply say “landlords receive 20% relief” may not remain accurate for the 2027/28 tax year.If you are planning to hold a rental property for several years, it is worth considering both the current and future tax position rather than basing your decision on one year's calculation.What should landlords check?Section 24 is only one part of the return from a rental property.Before making a property or mortgage decision, consider:Annual rental incomeMortgage interest and other finance costsAllowable property expensesYour wider tax positionManagement and maintenance costsPotential periods without a tenantHMRC confirms that expenses such as letting-agent fees, insurance, repairs, utilities and certain professional fees can generally be deducted when they meet the relevant rules.For a broader look at rental expenses, see Cribs Estates' guide to rental property expenses landlords can claim.How Cribs Estates can help landlordsAt Cribs Estates, we support landlords across London with tenant sourcing, rent collection, maintenance, compliance and ongoing property management. We work with both individual landlords and property investors and focus on keeping rental properties well managed.Our property management services for landlords can take care of the practical side of running a rental property, from finding tenants and collecting rent to arranging maintenance and handling compliance.Cribs also has long-standing landlord relationships. One client says, “Cribs has found tenants for her properties across London for nine years and manages some of them”.Frequently Asked QuestionsCan landlords still claim tax relief on mortgage interest?Yes, but individual residential landlords generally receive a finance-cost tax reduction rather than deducting the mortgage interest directly from rental income. For 2026/27, the reduction is calculated at the basic rate of 20%, subject to HMRC's rules.Does Section 24 apply to limited companies?The individual Section 24 restriction does not apply to UK-resident companies in the same way. Companies can generally claim interest on property loans as an allowable expense for Corporation Tax purposes.What happens to Section 24 in 2027?From 6 April 2027, separate property-income tax rates of 22%, 42% and 47% will apply, and finance-cost relief will be provided at the 22% property basic rate.

Read more

85 Buy to Let Mortgages Explained: Rates, Deposits and Costs in 2027

An 85% LTV mortgage can reduce the deposit needed to buy a rental property, but the smaller upfront payment also means taking on more borrowing. This is why understanding 85 buy to let mortgages means looking beyond the deposit and checking the mortgage rate, fees, rental income and other buying costs.For example, an 85% mortgage on a £200,000 property would require a £30,000 deposit and leave a £170,000 mortgage. But is that enough cash to buy the property, and will the rent cover the borrowing? Here is how the numbers work.What does an 85% buy-to-let mortgage mean?An 85% LTV buy-to-let mortgage allows you to borrow up to 85% of the property's value, meaning you provide the remaining 15% as a deposit.Property price15% deposit85% mortgage£200,000£30,000£170,000£250,000£37,500£212,500£300,000£45,000£255,000£400,000£60,000£340,000This is a smaller deposit than the 25% often associated with mainstream buy-to-let mortgages. Cribs Estates' buy-to-let mortgage deposit guide explains the wider deposit options landlords may encounter.What are the current 85% buy-to-let mortgage rates?85% LTV products are available from some lenders, although rates and eligibility vary.As of September 2026, Vida Homeloans publishes an 85% LTV standard BTL rate of 5.79% for a 2-year fixed product and 6.58% for a 5-year fixed product. Both products have a 2% fee, with a £195 assessment fee also applying. Using a £170,000 mortgage as an example:Item2-year fixed5-year fixedPublished rate5.79%6.58%Mortgage£170,000£170,000Approx. monthly interest*£820£9322% product fee£3,400£3,400*Illustrative interest-only calculation. It excludes other property and mortgage costs.Is a 15% deposit enough to buy a BTL property?For an additional residential property in England or Northern Ireland, higher Stamp Duty Land Tax rates can apply. Under the current rates, a £200,000 additional-property purchase would incur £11,500 in SDLT:First £125,000 at 5% = £6,250Remaining £75,000 at 7% = £5,250Total = £11,500That means the example purchase already requires:£30,000 deposit + £11,500 SDLT = £41,500You would still need to budget for legal costs, valuation or mortgage fees, refurbishment, compliance work and a reserve for repairs or periods without a tenant.How much rent do you need for an 85% LTV mortgage?Buy-to-let lenders assess whether the expected rental income provides enough cover for the mortgage interest. Each lender can use its own rental affordability test, so there is no single rent figure that guarantees approval for an 85% buy-to-let mortgage.For example, a £170,000 mortgage may look affordable based on the purchase price, but the lender will still assess the expected rent against its own criteria.Who can get an 85% buy-to-let mortgage?An 85% LTV BTL mortgage is not automatically available to every landlord. Lenders can consider:Whether you are a first-time or experienced landlordYour credit and financial positionExpected rental incomeProperty type and conditionWhether you are buying personally or through a companyYour existing property portfolio75% vs 85% LTV: which requires more cash?For a £200,000 property, the difference is easy to understand:Item75% LTV85% LTVDeposit£50,000£30,000Mortgage£150,000£170,000An 85% mortgage leaves £20,000 more of your deposit available, but you borrow £20,000 more. That can mean higher monthly interest and potentially higher borrowing costs. So the question is not simply whether you can put down 15%; it is whether the property still works after mortgage interest, management, maintenance, insurance, tax and potential void periods.How Cribs Estates helps landlordsAt Cribs Estates, we support landlords across London and South London with tenant sourcing, rent collection, maintenance, compliance and ongoing property management. Our property management services for landlords can help with the practical side of running a rental property once it is let.This is important when assessing an investment based on projected rental income. Understanding the likely rent is only the first step; you also need to account for the ongoing costs of managing the property.FAQsCan I get an 85% buy-to-let mortgage with a 15% deposit?Yes, some lenders currently offer 85% LTV BTL products, although eligibility depends on the lender, property, rental income and your circumstances.What are the current 85% buy-to-let mortgage rates?As of September 2026, Vida publishes 5.79% for a 2-year fixed 85% LTV BTL product and 6.58% for a 5-year fixed product, both with a 2% fee. Rates can change.How much rent do I need for an 85% LTV mortgage?There is no universal figure. Each lender applies its own rental affordability criteria, so the expected rent for the specific property needs to be checked.Final Thoughts85 buy to let mortgages can make a rental purchase possible with a 15% deposit, but the lower upfront requirement comes with a larger mortgage and potentially higher borrowing costs. On a £200,000 property, that means £30,000 upfront for the deposit and £170,000 borrowed, before SDLT and other purchasing costs. Book a consultation today.

Read more

Property search

Residential Lettings
Price
Min price
Max price
Number of Bedrooms
Min bedrooms
Max bedrooms
Find properties
x