Document downloads - Service charges in commercial property
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Surveyors acting as advocates
Published February 2017
Effective from 1 June 2017
The professional statement sets out the core duties expected of the surveyor-advocate. It applies where you agree (whether in writing or orally) to act as a surveyor-advocate before any tribunal in England, Wales or Northern Ireland.
The guidance note offers guidance on fundamental aspects of advocacy practice. It outlines general duties and roles and offers best practice advice on, among other things, case preparation and preliminaries, evidence and documents, and hearings.
A client guide (a stand-alone electronic version of the professional statement) is also available. -
Code of measuring practice
Published: September 2007
Reinstated: 23 January 2018
Effective from: 23 January 2018
Code of measuring practice, 6th edition was reinstated on 23 January 2018 after publication of RICS property measurement, 2nd edition.
The 6th edition of the code became effective globally from 18 May 2015 when it was incorporated into the first professional statement, that for offices. -
Service charges in commercial property
Published September 2018
Effective from April 2019
Reissued September 2023
This professional standard sets a marker for the standards of management required in commercial property and provides mandatory obligations that RICS members and regulated firms engaged in this area must comply with. It has been endorsed by property bodies representing all sides of the property industry and widely acknowledged as a significant step forward for the property industry.
This document is effective from 1 April 2019.
The aims and objectives of this professional standard are to:
- improve general standards and promote best practice, uniformity, fairness and transparency in the management and administration of services charges in commercial property
- ensure timely issue of budgets and year-end certificates
- reduce the causes of disputes and to provide guidance on resolution and
- provide 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.
Although this document is a first edition professional standard, it supersedes the previous three editions published as codes of practice from 1 April 2019.
This document was reissued in September 2023 as a professional standard. It had previously been published in September 2018 as a professional statement. No material changes have been made to the document. -
Service charge residential management code
Published 2016
Effective from 1 June 2016
The RICS Service Charge Residential Management Code 3rd edition was approved by the Secretary of State under section 87(7) of the Leasehold Reform, Housing and Urban Development Act 1993.
The Code applies only to residential leasehold properties in England but it deals with flats, houses and all other dwellings whether in towns or in the country, on estates, in groups or on their own. It covers all lengths of leases and statutory tenancies where variable service charges are payable. The Code does not apply where the landlord is a public sector authority, or a registered social landlord, but it does apply where a public sector authority or registered social landlord is an agent managing for a private sector owner. -
Surveyors acting as arbitrators and as independent experts in commercial property rent reviews (ARCHIVE)
This document has been archived and is available on isurv for information purposes only.
See the latest editions:
- Surveyors acting as arbitrators in commercial property rent reviews, 9th edition (2013).
- Surveyors acting as independent experts in commercial property rent reviews, 9th edition (2014). -
Sinking funds, reserve funds and depreciation charges (ARCHIVED)
This document has been archived and is available on isurv for information purposes only.
Sinking funds, reserve funds and depreciation charges are all ways of making financial provision for future repairs or replacements.
This 2nd edition information paper is in three sections. The first section addresses matters that owners, occupiers, managers and drafting solicitors might like to consider. The second section provides further information in support of the RICS Code of Practice, Service charges in commercial property (‘the Code’). The third section (see appendix A) sets out suggested service charge lease provisions that have been specifically designed to comply with the principles and provisions of the Code. -
Service charges and tenant alterations (ARCHIVED)
This document has been archived and is available on isurv for information purposes only.
The fair and equitable apportionment of the costs incurred by a landlord in dealing with common parts, works and services is often relatively straightforward. The most common and simplest method of apportionment is based on floor area, i.e. the proportion the tenant bears is the ratio that the floor area of the premises bears to the aggregate floor area of the whole building or scheme.
However, where a tenant carries out alterations to premises which increases (or decreases) the floor area of the premises (e.g. the installation or removal of a mezzanine floor within the tenant's demise) issues can arise as to the extent to which the tenant's proportion of the landlord's service charge should be increased or decreased, and the potential impact upon the proportion of the service charge payable by other tenants. -
Apportionment of service charges in mixed-use developments (ARCHIVED)
Published August 2009
Effective from July 2009
Archived 21 November 2017
This document has been archived and is available on isurv for information purposes only.
This information paper was written to address new developments where the service charge apportionment strategy can be constructed simultaneously with the lease documentation. The principles it sets out can be used when considering revising the Apportionment of existing developments where the existing leases do not allow for apportionment to be amended. But consequent complications must be taken into account.
Whatever the circumstances the resultant apportionment strategy must be clearly and transparently set out. It must enable all parties to understand the basis of apportionment and allow for future modifications in the event that circumstances change making a revised apportionment strategy necessary. -
Service charge detailed expenditure report
An example of a detailed expenditure report for service charges, split into management, utilities, soft services, hard services, income, insurance and exceptional expenditure.
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Landlord's surveyor's service charge certificate
An example of a surveyor's service charge certificate, split into management, utilities, soft services, hard services, income, insurance and exceptional expenditure.
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Service charge variance report
An example of a service charge variance report, split into management, utilities, soft services, hard services, income, insurance and exceptional expenditure.
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DRS2SC: Service charge disputes
Application to the President of RICS for the appointment of an independent expert/arbitrator/mediator to determine a service charge dispute.
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Commercial property service charge handover procedures
Published: March 2015
Effective from: 27 March 2015
This guidance note covers commercial multi-let property where there is a service charge. It deals with the handover of financial and supplier information between owners and/ or managers.
Superseding the previous information paper of the same name (published in 2011), this guidance note is aimed at property owners and managers and their legal advisers. Its intention is to set out a series of procedures that will apply during any handover period in order to improve the quality of service to the industry’s customers.
This guidance note covers:
- sale of a property
- change of manager and
- example reconciliation statements. -
An overview and comparison of dispute resolution processes in the UK (ARCHIVED)
Published March 2011
Effective from March 2011
Archived 9 December 2016
This document has been archived and is available on isurv for information purposes only.
There are many different dispute resolution processes in the UK, the idea being that all of them strive to meet these aims in different ways. However, 'one size does not fit all', and selecting the wrong process can result in the opposite outcome; an unacceptable result in the longest possible time, with the greatest possible expense and maximum stress on the participants. The purpose of this paper is therefore to give an accurate, non-legalistic and user-friendly overview of the main dispute resolution processes available to the property, land and built environment sectors in the UK. This should assist users in selecting the most suitable dispute resolution process for their particular dispute. -
Surveyors acting as arbitrators in commercial property rent reviews in Scotland
Published August 2014
Effective from August 2014
Reissued February 2024
This professional standard is designed primarily to assist those who are appointed to act as arbitrator, either by the Chairman of RICS Scotland, or directly by the parties to a dispute. It is also intended to assist the parties themselves and those acting for them by making them aware of the procedures likely to be followed.
This professional standard is based on the law and practice relating to arbitrations in Scotland, which are governed by the Arbitration (Scotland) Act 2010.
See also: Surveyors acting as independent experts in commercial property rent reviews in Scotland.
This document was reissued in February 2024 as a professional standard. It had previously been published in August 2014 as a guidance note. No material changes have been made to the document. -
Surveyors acting as arbitrators in commercial property rent reviews
Published April 2013
Effective from April 2013
Reissued December 2023
This professional standard is designed primarily to assist those who are appointed to act as arbitrator, either by the President of RICS, or directly by the parties to a dispute. It is also intended to assist the parties themselves and those acting for them by making them aware of the procedures likely to be followed.
See also: Surveyors acting as independent experts in commercial property rent reviews, 9th edition (2014).
This document was reissued in December 2023 as a professional standard. It had previously been published in April 2013 as a guidance note. No material changes have been made to the document. -
Surveyors acting as independent experts in commercial property rent reviews
Published February 2014
This 9th edition guidance note is designed primarily to assist those who are appointed either by the President of RICS, or directly by the parties to a dispute, to act as an independent expert to determine their dispute. It is also intended to assist the parties themselves and those acting for them by making them aware of the procedures likely to be followed.
See also: Surveyors acting as arbitrators in commercial property rent reviews, 9th edition (2013).
The previous 8th edition is available on isurv for information purposes only. -
Independent expert determination
Published December 2016
Effective from December 2016
Reissued December 2023
This document is designed primarily to assist those who are appointed either by the President of RICS or directly by the parties to a dispute to act as an independent expert to determine their dispute. It is also intended to assist the parties themselves and those acting for them by making them aware of the procedures likely to be followed.
This professional standard is based on the law and practice relating to expert determinations in England, Wales and Northern Ireland.
Independent expert determination is well suited to construction-related matters (e.g. workmanship and completion issues under development agreements or specific technical disputes) and in the area of dilapidations and service charge disputes.
This document was reissued in December 2023 as a professional standard. It had previously been published in December 2016 as a guidance note. No material changes have been made to the document.