Service charge and outgoings

Both residential and commercial landlords aim for a 'clear lease': where the costs of repair, maintenance and provision of services are met by the tenants rather than being deducted from the rent received.

Where a building is in multi-occupation it is sensible for repair, maintenance and services to be controlled by the landlord, with the costs being recovered from tenants through the service charge.

In commercial leases the tenant's obligation to pay service charge, and the landlord's ability to recover costs, are entirely contractual and are not subject to statutory control. In residential leases the tenant's obligation to pay depends on there being a contractual service charge clause, but the landlord's ability to appoint managing agents, carry out works and to recover costs is heavily regulated by statute.

Service charges in commercial property—RICS professional standard

Commercial service charges are not (currently) subject to statutory control. However, the Royal Institution of Chartered Surveyors (RICS) Professional Standard on Service charges in commercial property, 2nd edition (the Service Charge Standard) is effective from 31 December 2025. It supercedes the Service charges in commercial property, 1st edition, which was originally issued

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Latest Property News

Property weekly highlights—22 January 2026

This week's edition of Property weekly highlights includes in relation to the Renters’ Rights Act 2025 publication of draft regulations providing details of the written statement and information sheet and commencement regulations which bring into force provisions relating to discrimination in the private rental sector in Wales, HMLR updates and a new portal design, a new government Building Safety Newsletter, a partial response to the consultation on reforms to the energy performance of buildings regime, analysis of proposed reforms to the National Planning Policy Framework, BPF’s response to the consultation on non-domestic smart meter roll-out, research on the impact of ESG on residential property valuation and cases on the right to manage, the definition of a dwelling for the purposes of residential service charge, dispensation from statutory consultation for residential service charges, bankruptcy and matrimonial property, business rates and advertising rights and SDLT overpayment relief.

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