PRS fee setting maintenance overview
In return for undertaking all letting activities, executing void action plans and securing the rental collection from occupying tenants, a housing organisation will levy a consolidated management fee for these combined services, which will be deducted from the cyclic rent charge - along with any costs incurred over the same period for carrying out agreed repairs - before submitting the final payment to the landlord. The calculation method for this management fee can be derived in one of two ways:
Any number of calculated management fees can coexist for the same company subset, ensuring that contract variances in existence between the housing organisation and private landlords can be accurately reflected. These are then linked to the overarching asset management agreement type through the field labelled PRS Fee, which identifies the calculation method that will be used for the derivation of administration costs i.e. in terms of the percentage of rent payments, or as a set amount. Where the management cost is to be fixed - and therefore independent of the cumulative rental transactions - but only levied once a cleared payment has been received onto the account, the flat rate fee can be defined as a global figure and mapped to the agreement type. In contrast, an asset based charge can be configured at individual agreement level and applied to relevant PRS accounts every successive period, irrespective of cleared funds.
Separate help articles have been created for each key aspect of PRS fee setting maintenance, including: