How is the reasonableness of a service charge determined?
In this case the Land Tribunal decided that if a Lease allows for a type of cost to recharged, that does not automatically mean that the amount which is charged is reasonable.
Is there anything wrong with a service charge?
The Lands Tribunal decided that there was nothing wrong, in principle, with companies connected to the Landlord providing works and services, the cost of which is charged through a Service Charge, so long as the agreement to provide services or works is not a “sham”.
Can a leaseholder challenge a service charge?
This case shows that a Leaseholder can challenge the reasonableness of costs included in a Service Charge, particularly for Major Works, on the basis that these costs are above a level typical which for the time when the costs were incurred and the circumstances the works were carried out.
How to determine reasonable charges for tenant damages?
Repairs tend to be so specific that it can be difficult to put together a standard list of potential repair costs at your property. For example, one tenant may flush a diaper down the toilet and cause the entire main sewer line at the property to back up.
What should be considered when determining repair or replace?
Factors that should be considered in the determination of whether repair is the appropriate measure of recovery are the after repair capacity, capability, reliability, and safety of the property. In addition, the future insurability, operational costs and lifespan would also be weighed in the determination of repair versus replace.
Repairs tend to be so specific that it can be difficult to put together a standard list of potential repair costs at your property. For example, one tenant may flush a diaper down the toilet and cause the entire main sewer line at the property to back up.
What’s the 50 percent rule for repair or replace?
When I first sat down to write about the “repair or replace” dilemma, in the back of my mind there was a vague notion that a simple, calculation-based method would be the ultimate solution. I had heard of the 50% Rule and thought that it (or something like it) would be the obvious centerpiece of the decision-making process.
What is the value of repair or replace insurance?
The value would be limited to the actual amount expended to repair or replace the damaged equipment with comparable materials and quality. Further, the potential recovery would be limited to the actual property that is repaired or replaced, within a reasonable period of time following the loss.