The original developer may have retained the House Manager’s flat and established a rental on it, which the lease/deeds sets out should be paid. The rent was designed to compensate the developer for providing a flat within the development for the House Manager, ultimately for the benefit of the residents. This arrangement should have been explained to each person by the solicitor acting for them at the time of purchase. Under the terms of the lease/deeds, you are usually obliged to pay the required service charge contribution including a proportion of the rental on the House Manager’s flat. The income from the House Manager’s flat is passed to the landlord.

The rent was set in the first instance by the developer.

In England and Wales, the income from the flat rental is passed to the landlord. If residents believe that the level of the rental over time has moved away from what might be regarded as reasonable they should contact the landlord. The landlord is then in a position to review the level of the rental. The landlord should seek to ensure that any rental is reasonable. In undertaking this review both parties will have to take into consideration the location and quality of the development and the terms that apply to it. If, after any such review, residents continue to be dissatisfied with the rental level they may approach a Leasehold Valuation Tribunal (LVT).