Commercial Property Service Charges – London Restaurants.

This firm gets a lot of business in London from cafe and restaurant clients occupying multi tenanted buildings that feel that there are being overcharged for commercial property service charges. Frequently they are correct..but why?Commercial Service Charges UK - Mistakes - London Restaurants

The most common mistake in my experience is that Landlords haven’t split the common area costs correctly between schedules. Costs have been lumped together in one or two schedules which don’t accurately reflect the use or the benefit derived. The cafe / restaurants can find themselves paying towards costs that are either not recoverable under their lease or  for which they simply don’t use /derive no benefit.

At a minimum managing agents restaurants or cafes should query landlords when feel they are overpaying. Don’t just accept new service charge budgets.