RICS launches updated commercial property service charge code

RICS has today launched the second edition of Service Charges in Commercial Property. Service Charges in Commercial Property is a code of practice intended to remove service charges as an area of conflict between commercial property owners and occupiers.

The updated code is endorsed by leading industry bodies and builds on the themes of the first edition with greater emphasis on communication, timeliness and transparency between commercial property owners and occupiers.

Also available in the new code are two ‘model lease clauses’ to help the legal profession ensure these standards are being met in new and renewal leases.

Building on the standards announced in the initial code, the updated guidance now requires occupiers to be proactive in their communication with managers and investors. Furthermore, issues around sustainability are addressed for the first time. Compliance with the code also requires the adoption of the Industry Standard Cost Classifications