Work out service charge reconciliation instantly with clear inputs, formula shown and shareable results.
Service charge is collected on account against a budget and reconciled to actual expenditure at year end. The tenant's share of actual cost less what it has already paid gives the balancing charge, or a credit where the budget was overstated. The building level variance shows whether the overrun is the tenant's share or a management issue.
Balancing charge
Balance = actual expenditure x tenant share - amount paid on account
Variance
Variance = actual - budget, as a percentage of budget
Balance = actual expenditure x tenant share - amount paid on account. Service charge is collected on account against a budget and reconciled to actual expenditure at year end.
Only if the lease permits and the cost is properly incurred within the recoverable heads. Many leases also require consultation before major works, and failing to consult can bar recovery.
This calculator takes 4 inputs: Budgeted service charge for the building, Actual expenditure, Tenant share, Paid on account by the tenant. The pre-filled defaults are a realistic worked example — replace them with your own site or project figures.