Service charges in commercial property

Aimed at commercial property managers and occupiers in the UK, Service charges in commercial property, 2nd edition, promotes best practice, uniformity, fairness and transparency in the management and administration of service charges in commercial property.

This professional standard aims to help ensure that budgets and year-end certificates are issued in a timely manner and encourages a reduction in the causes of disputes (and where there are disputes, provide guidance on resolution). It provides guidance to solicitors, their clients (whether owners or occupiers) and managers of service charges, in the negotiation, drafting, interpretation and operation of leases, in accordance with best practice. This professional standard also sets mandatory requirements for RICS members and RICS-regulated firms, which will encourage service charges to be managed with greater consistency and due diligence.

Service charges in commercial property, 2^nd edition, is effective from 31 December 2025.

On this page you will also find the basis for conclusions, which details the engagement RICS had on this standard and reasons for decisions made, and a red line version showing the changes from the 1st edition. Three template documents are also available to download for voluntary agreements.

Template 1 is for the agreement to retain monies included in a budget and already collected but where work has been deferred until a subsequent service charge period.

Template 2 is for the agreement to forward fund the cost of future works.

Template 3 is for the agreement to defer the recovery of costs incurred by the landlord over future periods, known as a payment plan.

Please note: On 8 October 2025, this professional standard was reissued to address an error at page 5, subsection 1.6. The original wording ‘This professional standard is effective for all service charge periods commencing from 31 December 2025’ has been amended to ‘This professional standard is effective from 31 December 2025.

RICS & ICAEW

RICS and ICAEW have agreed a statement over the effective date of the Service charges in commercial property, 2nd edition, launched in June 2025. Following its release, the RICS issued clarification over the effective date as follows:

“On 8 October 2025, this professional standard was reissued to address an error at page 5, subsection 1.6. The original wording ‘This professional standard is effective for all service charge periods commencing from 31 December 2025’ has been amended to ‘This professional standard is effective from 31 December 2025.”

The RICS and ICAEW have agreed a transition for the application of the revised RICS Professional Standard and Technical Release 09/14 Accountants’ Reports on Commercial Property Statements of Service Charge Expenditure (TECH 09/14 BL). The application of both the Professional Standard and Tech 09/14, may have regard to the version that was in place at the commencement of the service charge period under review. Whilst the RICS supports early adoption of the RICS Professional Standard, it appreciates that some of these new provisions cannot be retrospectively implemented for service charge years that commenced prior to 31 December 2025. For clarity the RICS expects the provisions to be fully in place and adopted in service charges with 31 December 2026 year ends and beyond.