Rent Charge - Service Charge by another name?

Rent Charge - Service Charge by another name?

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Does a company formed to handle rent charges have to report any differently to a company formed to handle service charges?

From my research it appears not but there's very little out there about rent charges possibly because they are presumed to be synonymous with service charges when it comes to reporting.

So far as I can see I need to change a few words from service charge to rent charge, but the service charge accounts are still called service charge accounts and prepared otherwise in the same way.

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Euan's picture
By Euan MacLennan
29th Jan 2014 10:49

What is a rent charge?

Is it what most people would call rent paid by tenants?

If so, the company is acting either as a freehold (or superior leasheold) landlord or as a letting agency.  The LTA provisions about service charges being held in trust for the tenants and the need for separate service charge accounts do not apply.

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Euan's picture
By Euan MacLennan
29th Jan 2014 11:16

In that case ...

... it is a service charge.

But I simply do not understand how anyone could ever describe payments by freeholders as anything to do with rent.

Thanks (1)
Replying to lionofludesch:
By NJH
29th Jan 2014 11:21

Thanks

That's what I thought. Just a legal term unnecessarily muddying the waters and with RMCs, service charge accounts etc. I find the waters are plenty muddy enough!

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Euan's picture
By Euan MacLennan
29th Jan 2014 11:33

I should have Googled it

Apparently, there is even statutory law on Rentcharges.  At least, no new ones can now be created.

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Replying to Slim:
By NJH
29th Jan 2014 11:45

Interesting...

that sounds like an archaic income stream that is probably a complete nuisance now as the money being collected is likely less than the money involved collecting it. Not sure why the solicitors in this case chose to use the word rent charges when it seems service charge would have sufficed. The only difference in my mind is that those paying it are freeholders of their property not leaseholders.

Also interesting they managed to make one word out rentcharges!

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