RICS brings in new property service charge rules
The RICS has brought in new mandatory requirements to keep the commercial property service charge system in check.
In the new RICS professional statement, called “Service charges in commercial property”, the RICS said: “This professional statement offers best practice on ensuring occupiers are given clear and concise information on all of the service charges they can expect to pay up front.
“The professional statement also provides guidance on more technical matters, including the way in which service charge monies should be held within bank accounts.”
The RICS has brought in new mandatory requirements to keep the commercial property service charge system in check.
In the new RICS professional statement, called “Service charges in commercial property”, the RICS said: “This professional statement offers best practice on ensuring occupiers are given clear and concise information on all of the service charges they can expect to pay up front.
“The professional statement also provides guidance on more technical matters, including the way in which service charge monies should be held within bank accounts.”
The changes come into effect in April 2019, to give adequate time for accounting procedural changes.
The RICS has worked with major property bodies representing owners, occupiers and managing agents, including the British Property Federation – alongside the Institute of Chartered Accountants in England and Wales and the Law Society, the professional bodies for accountants and lawyers – to produce the recommendations.
Paul Bagust, RICS global property standards director, commented: “This professional statement will help to better protect both landlords and tenants by avoiding costly – and often devastating – disputes over what can be a substantial business overhead.”
Jonathan J Stockham MRICS, head of estates at Specsavers Property Services, added: “Specsavers operates from nearly 900 retail, office and supply chain properties in the UK and the Republic of Ireland. Our estate is primarily leasehold, and the need for a consistent, clear and robust set of guidelines for commercial service charges is self-evident to ensure harmonious landlord and tenant relationships and fairness throughout our estate.
“Specsavers has been fully engaged with the consultation process and will seek to have the principles, where relevant, incorporated into our leases of properties with service charges.”
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