Once we have agreed with you and set the annual service charge we will invoice all lessees accordingly. Some leases will have specific periods in which service charges must be invoiced. Statement of accounts will also be provided for individual lessees where appropriate.
Normally, we will invoice lessees quarterly. Payment is normally due immediately. With your agreement, we can set up payment profiles that suit you and your fellow lessees such as monthly payments by standing order. Each company will be different in respect of its financial year, your quarter will be dependent upon when your financial year starts and finishes. We can, with your agreement, and within current legislation change your financial year to suit you.
All lessees will be given a reasonable period of time in which to pay their service charges. If, however, they have not paid we will actively pursue payment of all fees due. We believe that it is not fair on fellow lessees who have paid their fees fully for others to enjoy the benefit of those fees and not to make their own payment. We will use relevant clauses within your lease (where applicable) to ensure fees are paid promptly. As with any company, cash flow is a key issue, and this will be no different for your management company.
Once we have exhausted all avenues at our disposal, to recover any outstanding fees in a sensible amicable manner, we will prepare the necessary paperwork to pursue the matter through the courts and will also ensure that any costs involved will also be recovered in as short a time as is possible. In such unfortunate events the detachment and independence of a Managing Agent like HMS can be a godsend to directors because it removes any personal aspects from the running of the management company.