Have your say: Help shape the future of service charge standards in commercial property
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17 September 2024
Service charges in commercial property – consultation period for second edition of the RICS standard
The Royal Institution of Chartered Surveyors (RICS) has announced the launch of a public consultation for its Service Charges in Commercial Property professional standard, set to be released in its second edition.
This vital update is aimed at commercial property managers, landlords, occupiers, and industry stakeholders across the UK, and seeks to gather your views to ensure the new edition reflects best practices in the management and administration of service charges, promoting greater fairness, transparency, and uniformity across the sector.
The updated standard, due to launch in summer 2025, is designed to address key challenges in the management of service charges, including the timely issue of budgets and year-end certificates, and aims to reduce the causes of disputes between landlords and tenants. In cases where disputes arise, the standard will provide clearer guidance on resolution, fostering a smoother relationship between parties.
The second edition of the standard will provide vital guidance for solicitors, their clients (whether owners or occupiers), and property managers. It will also assist in the negotiation, drafting, interpretation, and operation of leases, ensuring that they adhere to industry best practices.
By updating this standard, RICS hopes to enhance clarity and transparency in commercial property transactions, helping stakeholders navigate complex service charge issues with greater confidence and less friction.
RICS is calling on all those who work in the commercial property sector, including landords, occupiers and legal professionals, to provide their feedback on the proposed changes. The consultation will be open from today (Tuesday 17th September 2024) until Tuesday, 29 October at 23:59 GMT.
To participate and have your say, please visit: RICS Consultation: Service Charges in Commercial Property.
RICS Head of Professional Practice in Property, Paul Bagust, said: "This consultation is a crucial step in ensuring that service charges in commercial property are managed with greater transparency and consistency across the industry.
“By incorporating feedback from a wide range of stakeholders, we aim to create a standard that not only reduces disputes but fosters better relationships between landlords and occupiers."
