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."

You may also be interested in

The UK’s whole life carbon ecosystem: a framework for decarbonising the built environment

In a recent webinar, a panel of experts discussed four industry initiatives designed to measure, regulate, limit and track whole life carbon in the UK built environment.

UK commercial property signals early recovery but NI and Trump tariffs raise uncertainty

UK Commercial Property market shows early signs of recovery but NI rise and Trump tariffs create pressure and uncertainty

Commercial property outlook: will the recovery across commercial real estate markets gain traction?

Following the release of the RICS Global Commercial Property Monitor, a recent webinar looked at the outlook for commercial property in 2025 across the UK, German, the Gulf and US markets.

RICS survey calls the bottom of the UK commercial real estate market as yields harden across sectors

Does improving sentiment from the RICS Global Commercial Property Monitor signal an early upturn for the UK real estate market? Patrick Scanlon, Senior Director of Market Analytics, CoStar, examines the evidence.

RICS Property Investment Forum

The RICS Property Investment Forum was set up in response to the global financial crisis and convenes up to four times a year.

Martin Wolf, Financial Times, Lecture at RICS

Earlier this week RICS hosted Martin Wolf, Chief Economics Commentator at the Financial Times who presented a lecture entitled ‘The Crisis of Democratic Capitalism’ the title of his most recent book.

Data centres: can innovations reduce the environmental impacts of this asset class?

As the demand for data centres grows, how can their environmental impacts be mitigated? In the second of this two-part series, Tarrant Parsons, RICS head of market analytics, examines the innovations that could help reduce the carbon and water intensity of this real estate sector.

Uncertainty yet to dampen property market demand for higher quality, sustainable offices

RICS UK Commercial Property Monitor Q4 2024

Responding to the review of the Landlord and Tenant Act 1954

The Law Commission is currently undertaking a wide-ranging review of Part 2 of the Landlord and Tenant Act 1954.

RICS London HQ’s member space reopens after refurbishment

We are pleased to announce the opening of the renovated member lounge at the London headquarters on Great George Street, with the space now available for members to use free of charge.

How AI and tech are creating the future of real estate

Johnny Morris from Fifth Dimension AI and Andrew Knight discuss how the industry must move beyond PropTech and focus on core business challenges.

RICS Influence and Advocacy Impact Report 2024

The RICS Impact Report 2024 has been published, providing a comprehensive overview of our influence, advocacy and thought leadership activity across the UK.