What Should an Estate Service Charge Statement Include? A Guide for Nigerian Estates

It is the last Saturday of the month. The estate WhatsApp group is busy.

“Light was off for three days. What did we pay for?”

“Diesel again? We just bought diesel.”

“Please share the account.”

The facility manager knows the answer. He bought the diesel. He fixed the borehole pump. He paid the gatemen and the cleaners. Every payment went where it should.

But the receipts live in three places. Some are on his phone. Some are in a folder in the estate office. One is written on the back of a waybill.

So he types, “I will send the breakdown.”

The group goes quiet. Not because everyone is happy. Because they are waiting.

A good estate service charge statement shows each unit what it paid, how the money was spent, and what remains. It should also explain how shared costs were allocated, and provide supporting records for significant expenses.

For estate managers, this is more than an accounting exercise. It is how residents see what their contributions are paying for.

Why do residents argue about service charges?

Most residents agreed to the service charge when they moved in. They understand that an estate needs security, cleaning, power, water, and maintenance. They are happy to pay their share.

What they want is to see where the money went.

When people cannot see the breakdown, they fill the gap with guesses. Guesses are never kind.

That is why service charge arguments in estates across Lagos, Abuja, and Port Harcourt rarely start with the amount. They start with the statement.

Without a clear statement, even the most diligent facility manager has to ask residents to take his word for it.

With one, the numbers speak for him.

What should an estate service charge statement include?

A good statement answers three questions for every unit:

• What did I pay?
• What was the money spent on?
• What is left?

The format should be simple, consistent, and easy to understand every month.

Here is what an estate service charge statement should contain.

1. Opening balance

This is the amount available in the unit’s account at the beginning of the month.

If a resident had an outstanding balance from the previous month, it should be visible here. The same applies to any credit carried forward.

2. Payments received

Record every payment made by the unit during the month.

This includes service charge payments, special levies and power top-ups, where applicable.

Each entry should show the date, amount, and payment reference so residents can reconcile their records.

3. Expenses, listed individually

Avoid putting every expense under one line called “maintenance”.

Residents should be able to see what the estate spent money on.

A service charge breakdown may include:

• Diesel
• Grid electricity
• Security
• Cleaning
• Water treatment
• Waste disposal
• Repairs and maintenance
• Administrative expenses
• Contributions to a sinking fund, where applicable

Each category should have its own amount and, where possible, the date of the expense.

4. The unit’s share of shared expenses

This is particularly important for power, security, and other services used by the entire estate.

The statement should explain how the estate’s total expenses were allocated to each unit.

Was the cost split equally? Was it based on unit size? Was electricity consumption measured using individual sub-meters?

The method should be clear and consistent with the estate’s agreed service charge arrangement.

5. Closing balance

The closing balance shows what remains in the unit’s account at the end of the month.

It should account for the opening balance, payments received, allocated expenses, and any outstanding amounts.

This helps residents understand whether they have a credit, an amount still to pay, or a balance carried into the next month.

6. Supporting records for major expenses

This is the part many service charge statements leave out.

A statement tells residents what was spent. Supporting records help them understand why.

For significant expenses, the facility manager should be able to provide relevant records, such as:

• Diesel delivery waybills
• Fuel delivery photographs
• Generator run-hour records
• Electricity bills
• Repair invoices
• Before-and-after photographs of completed repairs

The statement does not need to become a folder of receipts. But the records behind significant expenses should be available when residents need to verify them.

That is what turns a breakdown into something residents can actually trust.

How do you calculate service charge in an estate?

The calculation begins with the estate’s operating budget.

Most estates estimate their annual shared expenses, including security, cleaning, power for common areas, water, maintenance, and contributions to a sinking fund for major repairs.

The total is then allocated across the units using an agreed method.

For example, an estate with 20 units and an annual shared operating budget of ₦24 million would have an average annual cost of ₦1.2 million per unit if the cost were divided equally.

That would amount to ₦100,000 per unit monthly.

However, not every estate uses an equal split. Some allocate costs based on unit size, number of bedrooms, or another agreed arrangement.

The important thing is to establish the allocation method, communicate it to residents, and apply it consistently.

The monthly statement should show the actual expenses and how each unit’s share was calculated, not just the amount residents are expected to pay.

How do you split diesel and grid power costs in an estate?

In many Nigerian estates, power is the service charge line residents ask about first.

Grid electricity and diesel often run side by side. Both cost money, and both need to be accounted for.

A useful estate power statement should show:

• How much electricity the estate purchased from the grid during the month.
• How many litres of diesel were delivered.
• How much diesel was used, based on available records.
• How many hours the generator ran.
• How much electricity each unit consumed, where sub-meters are installed.
• How shared power for gates, streetlights, pumps and other common areas was allocated.

Where individual units have sub-meters, their consumption can be used to calculate their respective share of electricity costs.

For common areas, the estate should use its agreed allocation method and show how the amount was calculated.

For example, if the estate spent ₦600,000 on electricity for shared facilities and the cost is divided equally across 20 units, each unit’s share would be ₦30,000.

The statement should make that calculation visible.

When residents can see the litres delivered, generator hours recorded, and electricity costs allocated, the question “diesel again?” becomes easier to answer.

Do small estates need a service charge statement?

Yes.

You don’t need 500 units to need a proper statement.

A terrace of eight still pays for diesel, security and repairs. It still has a WhatsApp group. Someone in it will still ask, “What did we pay for?”

In a small estate, everyone knows everyone. That makes clear financial records even more important.

A consistent statement keeps the conversation about numbers, not people.

It also gives the estate manager a record of expenses to use when preparing the next budget.

How Casalink builds the service charge statement for you

In Casalink, the statement builds itself while the work happens.

• Every fuel delivery is logged with a photo of the tank level before and after.
• The technician logs generator run hours with a photo each time.
• A repair is passed for payment only after its photos are checked against your SOP.
• Every payment lands in the unit ledger, next to the work order it paid for.

At month-end, the facility manager opens any unit and downloads a clean statement in one click.

Paid, spent, left, and the proof behind each line.

Diesel will still cost what diesel costs. What changes is that every resident can see where each litre went.

What changes when residents can see the service charge breakdown?

The WhatsApp group gets quieter, and this time it is because people have their answers.

The AGM runs shorter. Residents are more willing to pay when they can see what they are paying for.

And the facility manager walks into the residents’ meeting with the answers already printed.

A clear service charge statement does not make every expense smaller. It makes every expense easier to explain.

Frequently asked questions

How is service charge calculated in an estate?

Most estates add up their annual budget for shared costs, including power for common areas, security, cleaning, water, maintenance, and a sinking fund for major repairs.

The total is then divided across units using an agreed method. Some estates split costs equally, while others use unit size, number of bedrooms or another allocation method.

The calculation and allocation method should be communicated to residents and reflected in the monthly statement.

What is the difference between a service charge and a diesel deposit?

A service charge pays for the shared running of the estate.

Many Lagos estates also collect a diesel or power deposit that is drawn down as fuel is purchased.

Both should appear on the monthly statement so residents can see their payments, how much has been used, and what remains.

How often should residents get a service charge statement?

Monthly works best.

It keeps each statement short, makes it easier to reconcile payments and expenses, and allows residents to raise questions before they become bigger issues.

A yearly summary is also useful for the AGM, showing the full year’s expenses against the approved budget.

Where can I get a free service charge statement template?

Casalink’s free Estate Service Charge Statement Template works in Excel or Google Sheets. Log your costs, payments and power, pick a unit, and print a clear monthly statement.

You can use it with or without Casalink.

Download the free service charge statement template.

See your first service charge statement

Book a 15-minute demo. Tell us how many units you look after and how you split power today.

We will show you what your first monthly statement would look like.

Next year’s budgets are being set now, which makes this a good month to start.

P.S. Service charge arguments start with the statement, not the amount.

If you run a single building and everyone is happy with your spreadsheet, you may not need this yet.

If your estate WhatsApp group keeps asking where the money went, this was written for you.