Building budgets everyone understands. JMJ creates clear, realistic service charge budgets that build trust and prevent surprises.
If there’s one topic that creates the most confusion, frustration, and debate in block and estate management, it’s the service charge budget. And honestly, that’s understandable. When you’re paying into a fund every year, you want to know three very simple things:
- What am I paying for?
- Why does it cost that much?
- Is it fair?
At JMJ, we think you should be able to answer all three without needing a finance degree or a long explanation. A good budget should make sense to the people who create it and the people who pay for it. It should feel transparent, reasonable and, most importantly, rooted in reality.
The problem is that budgets haven’t always been handled this way. Some are inherited from developers and never really questioned. Others get copied year after year without proper review. And some are delivered in a way that feels more like a spreadsheet exercise than a meaningful plan for how your home will be looked after.
So, how do you build a budget that genuinely works for everyone involved?
Start with reality, not optimism
A realistic budget starts with an honest look at what the estate or block actually needs, not the ideal scenario, and definitely not the cheapest looking one.
We review:
- Existing contracts
- The current condition of the building or estate
- Past maintenance patterns
- Known risks or upcoming works
- How residents use the spaces
- Compliance responsibilities
One of the biggest problems we see is developer-created budgets that are set far too low. They make the property seem cheaper to run, but the fallout comes later. When year two arrives with a 40 percent increase because the original figures weren’t realistic, it damages trust instantly.
We would rather be upfront from the start. A fair, honest budget avoids shocks later and it sets you up for long-term stability rather than short-term comfort.
Understand the true cost of maintenance
Experience matters here. Cutting costs too far almost always leads to trouble down the road.
Grounds maintenance isn’t just one grass cut a month. Building compliance isn’t just fire alarms. Repairs aren’t predictable, and there must always be room for contingency.
A thoughtful budget anticipates the real world rather than hoping nothing unexpected will happen. It protects the property, but it also protects leaseholders from sudden spikes or emergency demands.
Build in transparency from day one
Residents shouldn’t need to squint at a spreadsheet to understand their own budget. A good budget should read like a clear story of what needs doing and why.
That means:
- No vague categories like “general repairs”
- Clear explanations for any new or increased cost
- Logical grouping of items so it all makes sense at a glance
- Plain language instead of jargon
- Open conversations, not closed doors
The risk of arrears when budgets aren’t clear
One of the biggest risks of unclear or unrealistic budgets is arrears. If residents don’t understand or feel confident in the budget, payment rates drop. When arrears build up, something far more serious happens as there simply isn’t enough money to run the estate properly.
This can lead to:
- Cleaning being reduced or paused
- Gardening being cancelled
- Repairs being delayed
- Planned maintenance being pushed back
- Emergencies having no contingency
In other words, unclear budgets don’t just cause confusion, they risk the quality, safety, and appearance of the entire development. Clear, collaborative budgeting protects everyone from that.
Think long term, not just year to year
A strong budget looks beyond the next twelve months. It considers the next five, ten or even twenty years. That means factoring in planned preventative maintenance, capital expenditure, inflation and the ever-tightening compliance landscape.
A well-funded reserve plan is one of the biggest gifts you can give your future self and your neighbours.
Collaboration with RMC Directors makes everything better
We always say this – a budget is best built together.
RMC Directors bring community insight, lived experience and a clear sense of what residents value most. We bring technical knowledge, compliance expertise and an understanding of true costs.
When you combine both, you get a budget that feels fair, realistic and genuinely aligned with residents’ expectations. Good communication prevents misunderstandings and gets everyone working towards the same goal, which is a well-run, financially stable development.
Review, adjust and keep improving
A budget should evolve. Each year tells us something new – what worked well, what didn’t, what costs are shifting and how the estate’s needs are changing.
When residents, RMC Directors and managing agents work together, a budget stops being a source of conflict and becomes a tool for stability.
At JMJ, our goal is simple: to create budgets that residents understand, trust and feel comfortable with. Because when everyone is on the same page, everything runs more smoothly and that benefits the whole development.
