Consultation by RICS on service charges in commercial property
Posted on 10 November 2017 by Janet Keirle
The Royal Institution of Chartered Surveyors (RICS) has issued a consultation on the 4th edition of the RICS Code of Practice: Service charges in commercial property. The new edition is to be launched on 1st April 2018 as a professional statement with mandatory requirements.
The new code is aimed at regulating the activities of landlords and their agents whilst protecting tenants from having to pay for unscrupulous repair or maintenance costs.
The aims of the new mandatory requirements include:
• Ensuring service charges to commercial tenants are transparent upfront and fair.
• Providing that any costs incurred to repair or maintain the building accord with the terms of the lease.
The aim is to make any potential or future changes to service costs clear and obvious to the tenant from the outset.
A further intention is to ensure any costs not specifically mentioned or referred to in the Lease are to be non recoverable from the tenants. Further guidance will also be provided to include how service charge monies are to be held within bank accounts.
Further information regarding the consultation can be obtained from RICS. Responses to the consultation must be submitted by 6 December 2017.
Posted in: Commercial Property