Service Charge Caps

Tenants may negotiate to limit their liability by means of a Service Charge Cap, which is a clause stating that in any one year the tenant’s obligation to pay the Service Charge shall not exceed an agreed figure … and look at what has happened since April 2020. We have completed a review of 7000…

Management Costs Offset Savings

A retail park service charge budget arrived recently and there was a 3.3% reduction, being broadly in line with the market and probably accepted by many.  However, on closer examination, there was a significant reduction in security costs that should have led to an 11% reduction.  This reduction had been offset by an increase in…

Electricity

Most occupiers of commercial multi-let buildings will be paying for electricity via two routes. However, do you know what you are paying and whether this represents good value for money? The electricity cost that may be more ‘visible’ to you will be what you use within your own space. This will be electricity consumed by…

Double or Triple Charging for Exceptional

With deferral & subsequent carrying forward of postponed works coupled with delays in certifying service charge there are instances where service charges levied on-account can effectively mean charges for the same work on numerous occasions until reconciled. Service charge budgets and reconciled accounts are not being issued in line with the timescales set out in…

Latest Refunds and Savings

With cost saving and refunds high on the agenda, I thought we would share some of the issues that we have dealt with this week……. Double payment of insurance through service charge and direct recharges. So it makes sense to have the same adviser for both. Rent (and service charge) start dates incorrectly administered. Don’t…

Residential Service Charges in Mixed Use

There is an increasing trend to incorporate residential elements in to mixed commercial schemes be that on the high street, with shops on the ground floor and residential above or in purpose-built mixed-use developments. This is demand led and it makes sense on many levels. That is the opportunity but there are risks. These include…

Furlough Payments & Service Charges

Shocked to hear that one of the UKs largest managing agents is having serious difficulty persuading their contractor to handover the furlough cash that the contractor received from government during lockdown, when the contractor was not required to provide the services. The contractor believes its their money! It’s a problem because many Landlords and Agents…

UK Offices Service Charges in 2021

The challenges of 2020 are clear to all and the impact will remain throughout 2021, bringing cost control in to sharp focus. When it comes to Service Charges, the RICS Professional Statement provides that occupiers should be consulted on budgets and property managers “should ensure that the standard of service provision (and therefore cost to…

UK Shopping Centres Service Charges in 2021

The challenges of 2020 are clear to all and the impact will remain throughout 2021, bringing cost control in to sharp focus. When it comes to Service Charges, the RICS Professional Statement provides that occupiers should be consulted on budgets and property managers “should ensure that the standard of service provision (and therefore cost to…

Moratorium Period

Any news on the possible extension (or not) of the moratorium beyond September? And why not issue the service charge credits for Covid savings now?   With many tenants unable to pay, there’s a lot of unpaid rent, service charge and insurance building up. If it were to end then tenants will be faced with the…