Office Service Charge – Commercial Property
In light of the new RICS code here are just 5 things that landlords and managing agents of offices need to ensure:
1) A service charge apportionment matrix is provided.
2) Budgets and reconciliations with appropriate explanatory notes are provided annually.
3) All expenditure sought to be recovered via the office service charge must be in accordance with the terms of the lease.
4) All service charge monies (including reserve and sinking funds) to be held in separate or virtual bank accounts.
5) A signed statement of actual expenditure is provided annually.
More mandatory requirements are contained in The New RICS Service Charge Code which comes into effect on 1st April 2019.