New guidance on service charges in commercial property has been issued by the Royal Institution of Chartered Surveyors (RICS).
RICS, which published the third edition of its code of practice on the issue on 4 February, said poorly managed service charges were a frequent cause of dispute between owners and occupiers.
The service charge code of practice was developed with and endorsed by leading property bodies and was first published in 2008. It sets out best practice principles for interested parties including service charge managers.
Peter Forrester, lead author of the code, said: “This latest version of the code of practice is a response to industry feedback and consultation and also reflects discussions with other bodies involved in the service charge process, such as the ICAEW (Institute of Chartered Accountants in England and Wales) and represents a continuation in the evolution of best practice.
“The aims, objectives and core principles remain unchanged but it is hoped that improved clarity and additional guidance, in respect of such issues as recommended best practice for disclosures and information that should be communicated to tenants, will be particularly welcomed.”
Commercial property service charge disputes can be time-consuming and stressful so seeking expert legal advice can be a worthwhile investment in resolving the difficulty quickly and cost-effectively. For more information on Palmers’ commercial property services, please visit our website or contact Carey Jacobs.