Service Charge Code – How to check the percentage

Service Charges in Commercial Property, 3rd edition

Feb 4, 2014 … The first two editions of this RICS Code of Practice set a marker for the standards of management required in commercial property. Endorsed by …
10 things a business occupier can do to check whether their service charge percentage is correct.

Service charge code

Check:

  • All lettable areas are included in the apportionment matrix.
  • Income generating activities contribute a fair share.
  • Floor areas are correct.
  • The basis is correct.
  • The method of measurement e.g IPMS3.
  • For a capped percentage in the lease.
  • Different schedules to reflect different use.
  • How costs are split between schedules.
  • Whether weighting is appropriate.
  • The arithmetic.

Further reading: The RICS service charge code of practice commercial property. 3rd edition