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 leases and captured key metrics on issues related to cappings, marketing, sinking funds and management fees. By far the most dramatic change is the increase in service charge caps. We work with our clients on pre-contract projects and monitor changes in the market place to provide guidance on all new sites and renewals.
We will be sharing some of the other findings in our next quarterly newsletter… if you are an occupier and would like to be added to the distribution, please contact Lesley Fulton our Business & Client Relations Manager.