{"id":185965,"date":"2024-01-24T03:31:25","date_gmt":"2024-01-24T03:31:25","guid":{"rendered":"https:\/\/legalvision.co.uk\/?p=185965"},"modified":"2024-01-24T03:32:40","modified_gmt":"2024-01-24T03:32:40","slug":"service-charges-tenant","status":"publish","type":"post","link":"https:\/\/legalvision.co.uk\/commercial-lease-property\/service-charges-tenant\/","title":{"rendered":"Key Points a Tenant Should Know About Service Charges in a Commercial Lease"},"content":{"rendered":"\n

As a tenant with a commercial lease<\/a>, you will enter into a commercial lease agreement. This contract between you and your landlord contains the details of your lease and both parties\u2019 rights and responsibilities. As a tenant, you may have a provision for service charges in your lease. This article will explain three key points a tenant should know about commercial property service charges.<\/p>\n\n\n

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Cheatsheet for UK Leasing Terms<\/div>\n
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This cheatsheet includes practical tips to understand key clauses and avoid disputes in leasing agreements.<\/p>\n <\/div>\n \n\nDownload Now<\/a> <\/section>\n <\/div>\n\n\n\n\n

Service Charges <\/h2>\n\n\n\n

If your commercial lease grants you sole possession or a portion of a commercial property as your business premises, it is possible that your landlord may lease other sections to different businesses. In this case, such as in an office block or a retail centre, there will be parts of the building that you and other business owners share. Typically, the commercial landlord is responsible for running these common areas, which includes repairs and maintenance. When doing so, they will naturally incur a cost.<\/p>\n\n\n\n

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The costs your landlord incurs for managing the shared areas of the property<\/a> will be offset by the retail tenants who occupy the building. Therefore, the landlord will charge these back to you and other tenants. This is usually in the form of a service charge, which your commercial lease agreement should detail.<\/p>\n<\/div>\n\n\n\n

Key Points About Service Charges<\/h2>\n\n\n\n

Service charge provisions in a commercial lease outline exact details about the charge. As a commercial tenant, it is beneficial for you to understand some of the key points related to these.<\/p>\n\n\n\n

1. Negotiations<\/h3>\n\n\n\n

Before you enter a commercial lease, you should negotiate its terms with your potential landlord, which your legal team will head for you. This allows you to obtain the most advantageous lease provision in the agreement for you as a tenant. <\/p>\n\n\n\n

It is helpful for you to incorporate the service charge provision in your negotiation as a commercial tenant. Ensure you have a clear understanding of the specific areas covered by these charges, as well as what you may wish to arrange. For example, you can discuss:<\/p>\n\n\n\n