Outrage erupts as Randall and Rittner Service Charges Double at The Tower

London: Residents of The Tower, a luxury apartment building in London managed by Randall and Rittner, are up in arms as the property management company announced a significant increase in service charges. The charges, which cover various expenses such as utilities, maintenance, and staff costs, are set to almost double in the year 2023. The increase, which includes a massive hike in electricity and energy center costs, has sparked controversy among the building’s residents, who are questioning the transparency of the charges and the necessity of such a dramatic increase.

Many residents of The Tower have expressed their frustration over the sudden and significant increase in service charges, with some launching a campaign to lobby for changes in the management of the building. The campaign, which includes a petition and social media outreach, highlights concerns about the lack of transparency in the budgeting process and the management company’s failure to consult with residents before making such dramatic changes. Some residents are also questioning the necessity of the increased charges. Many of the owners have already created a WhatsApp group through an email reaching and are actively discussing their concerns, with some even calling for a protest against the proposed service charges.

Prior to this announcement, many residents had been largely satisfied with the services provided by Randall and Rittner and were willing to pay a premium for the quality of management they received. Despite some grumblings about high costs, most residents had remained relatively quiet, even as they learned that similar buildings in the area had service charges less than half of what they were paying. However, with the latest proposed increase, many residents feel that the costs have become intolerable and are speaking out about their concerns. They argue that the proposed hike is unjustified and that the management company needs to be more accountable to the building’s owners.

According to a property owner in the Tower, if at least 50% of the owners in a building agree, they can vote to change the management company responsible for the property. This means that the residents of The Tower have the power to choose a new management company if they are not satisfied with Randall and Rittner’s proposed service charges or their handling of the situation. If this were to happen, it could have significant implications for the management company, not just in terms of losing the contract for The Tower but also in terms of the reputational damage that could result from such a high-profile and contentious dispute. Additionally, it could lead to other buildings managed by Randall and Rittner reviewing their own contracts and charges, potentially resulting in a loss of business for the management company.

2018 – 15,016
2019 – 17,855
2020 – 17,891
2021 – 16,998
2022 – 21,120
2023 – 29,178

The figures listed refer to the service charges and ground rent for a specific property, broken down by year. From 2018 to 2021, the charges remained relatively consistent, with only minor increases from year to year. However, in 2022, the charges jumped significantly to £21,120, and in 2023, they increased even more drastically to £29,178. This represents a nearly 40% increase in service charges and ground rent from 2022 to 2023, which is a significant rise that many owners may find difficult to accommodate in their budgets.

Budget 2023

The budget for a certain facility includes various expenses for the years 2022 and 2023. Electricity costs are increasing significantly from £662,000 in 2022 to £1,658,700 in 2023, and energy center costs are also increasing from £514,000 to £1,287,500. However, gas costs are increasing only slightly from £9,000 to £20,359, while water costs are decreasing from £15,000 to £7,000. Staffing recruitment and training costs are increasing from £12,000 to £16,500, and uniform costs are increasing from £5,000 to £12,000. Estate office IT costs are also increasing from £12,000 to £18,000. Reserves are decreasing slightly from £270,000 in 2022 to £260,000 in 2023. The budget includes planned major works for 2023, such as an aquifer and BMS upgrade, ice machine repair, and car park LED lighting. Ornamental plant costs are increasing from £7,000 to £16,500, and professional fees management fees are increasing from £239,338 to £256,092. The budget for contracts, maintenance, and services includes an increase in window cleaning costs from £100,000 to £120,750, an increase in CCTV costs from £16,000 to £22,000, an increase in drains, gutters, and downpipes costs from £9,000 to £12,000, an increase in fire safety costs from £55,000 to £70,000, and an increase in cradle maintenance costs from £8,000 to £10,000. Refuse and recycling costs are increasing slightly from £14,000 to £16,000, and water feature costs are increasing slightly from £7,000 to £8,500. The management fee increase is limited to 7% due to negotiations with the landlord, and the window cleaning contract costs are increasing to expand the scope of services.