Commercial service charge disputes

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Both residential and commercial landlords aim for a 'clear lease': where the costs of repair, maintenance and provision of services are met by the tenants rather than being deducted from the rent received.

Where a building is multi-let it is sensible for repair, maintenance and services to be controlled by the landlord, with the costs being recovered from tenants through the service charge.

In commercial leases, the tenant's obligation to pay service charge, and the landlord's ability to recover costs, are entirely contractual and are not subject to statutory control, although there is a significant body of case law on the mechanics of service charge clauses and the categories of services for which costs may be recovered.

For information on residential service charges, see Residential service charge disputes—overview.

The commercial property service charge statement

Commercial service charges are not subject to statutory control. However, the first edition of the Royal Institution of Chartered Surveyors (RICS) professional statement, ‘Service charges in commercial property’ (the Service Charge Statement), is effective for all service charge periods from 1 April 2019. The Service Charge Statement contains mandatory obligations

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