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.