RICS Guidance Note: Service Charges in Commercial Property 2nd ed

The new Code has been produced as part of a cross industry initiative in the light of ongoing concerns about disputes over service charges and their alleged lack of transparency.

Its stated aims are:

• To improve general standards and promote best practice, uniformity, fairness and transparency in the management and administration of services charges in commercial property.
• To ensure timely issue of budgets and year end certificates
• To reduce the causes of disputes and to give guidance to resolving disputes where these do occur.
• To provide guidance to solicitors, their clients (be they owners or occupiers) and managers of service charges in the negotiation, drafting, interpretation and operation of leases in accordance with best practice.

This Code recognises the lease as paramount and advises owners, occupiers and professional advisors to interpret leases as far as possible in line with the code, and to modernise leases when opportunities arise, such as during new lettings or renewals.