Tower Development (Vauxhall, London) : another victim of massive service charge increases under Rendall and Rittner
By Scott Johnson, Associates Times Feb. 2023
https://associatestimes.com/outrage-erupts-as-randall-and-rittner-service-charges-double-at-the-tower/amp/
London: Residents of The Tower, a luxury apartment building in London managed by Rendall 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.
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 (through exercising leaseholders’ Right to Manage). This means that the residents of The Tower have the power to choose a new management company if they are not satisfied with Rendall 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 Rendall 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
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