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14 June 2007 / Julien Allen
Issue: 7277 / Categories: Features , Property
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Best practice

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What does the new service charge code mean for property managers…and landlords? Julien Allen reports

Poorly managed service charges are a frequent cause of disputes between property managers and tenants. To ensure best practice is used in the property industry, the Royal Institution of Chartered Surveyors’ Code of Practice for Service Charges in Commercial Property has been released to address this problem. The extent of its adoption remains to be seen, but the effects of its implementation look to have significant benefits for tenants and to improve their relationships with property managers.

The code came into effect on 1 April 2007, setting out best practice in the management and regulation of service charges in England and Wales. The code advises owners, occupiers and professional advisers, including lawyers, to bring existing leases into accordance with the guidelines and to modernise leases when opportunities arise, such as new lettings.

WHAT HAS CHANGED?

The new code supersedes the second edition of Service Charges in Commercial Property: A Guide to Good Practice, and has been designed to attract a greater degree of compliance. As the code has moved from

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