If the lease is key; what do commercial office leases say about service charges?
While the RICS Code of Practice attempts to foster the adoption of best practice within the management and financial reporting practices of commercial service charges, issues arise when the provisions of the underlying lease conflict with the Code’s requirements or are silent as to the exact nature of the management, accounting, certification and auditing requirements for the service charge process.
Property Solutions, in conjunction with Dr Andrew Holt, has carried out research to investigate what UK commercial leases say regarding this subject.
· 90 commercial office leases analysed
· Investigation of the service charge provisions within the leases, identifying whether they support the principles and primary objectives of the RICS Code
· Trend analysis of how overall lease transparency, in the area of service charges, has changed over time