A common cause for contention between LL and commercial tenant is the issue of the service charge which is payable under the Lease. With that in mind and with the intention to remove service charges as an area of conflict between commercial property owners and occupiers the second edition of the RICS commercial property Service Charge Code has come into force.
The updated code is endorsed by leading industry bodies and builds on the themes of the first edition with greater emphasis on communication, timeliness and transparency between commercial property owners and occupiers. Many of the larger Landlords have agreed to abide by its principles.
Building on the standards announced in the initial code, the updated guidance now requires occupiers to be proactive in their communication with managers and investors. Furthermore, issues around sustainability are addressed for the first time. Compliance with the code also requires the adoption of the Industry Standard Cost Classifications.
If you have any issues regarding the service charge element of a commercial lease and would like to discuss this topic please contact Mathew Haynes on 0113 2450733.
