[denotational]

> Two people owning identical flats, one with a 90% mortgage at 5%, one with no mortgage at all, will charge exactly the same rent.

Identical flats in the same building will have the same management charge.

Flats in different buildings are not identical, and will generally have different rents; the difference in management charge is one factor that will determine this.

[ta1243]

No they won't have different rents, if they are identical then they can charge the same amount. The costs (service charge, mortgage, etc) doesn't come into it.

Think about it - if I'm a landlord and have a lower service charge why would I charge less? That just reduces my revenue.

If I am a tenant and see one charging more than another why would I pay for the more expensive one?