Commercial 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 on their retail shop for commercial service charges. Frequently they are correct..but why?
The most common mistake in my experience is that Landlords haven’t split the common area costs correctly between schedules. Costs have been combined 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 which they simply don’t use.
At a minimum restaurants or cafes should query landlords when feel they are overpaying. Don’t just accept new service charge budgets.