{"id":185979,"date":"2024-01-24T05:00:30","date_gmt":"2024-01-24T05:00:30","guid":{"rendered":"https:\/\/legalvision.co.uk\/?p=185979"},"modified":"2024-01-24T05:00:32","modified_gmt":"2024-01-24T05:00:32","slug":"service-charges-landlord","status":"publish","type":"post","link":"https:\/\/legalvision.co.uk\/commercial-lease-property\/service-charges-landlord\/","title":{"rendered":"Key Points a Landlord Should Know About Service Charges in a Commercial Lease"},"content":{"rendered":"\n

Commercial lease agreements<\/a> are legally binding contracts, so you are responsible for complying with your lease obligations and respecting your tenant\u2019s rights. However, when you and your tenant negotiate and draft a lease, you may have disagreements about the details of the lease provisions. As a landlord, one lease provision you must get right is the service charge provision. This allows you to recover the money you have spent on the property during your tenant\u2019s occupation of your premises. This article will explain three key points a landlord should know about service charges in a commercial lease.<\/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 Charge<\/h2>\n\n\n\n

If you lease out separate units within your property to various business owners, you may have a service charge provision<\/a> in your lease. For example, you might own a large commercial building which is divided into individual offices or a shopping centre where you lease each unit as a shop.<\/p>\n\n\n\n

A service charge allows you to charge your tenant a fee for looking after the shared areas<\/a> in your commercial property. These are the areas your tenants commonly use and share rather than their own commercial premises.<\/p>\n\n\n\n

Key Points<\/h2>\n\n\n\n

As a commercial landlord, you must fully understand the breadth of service charges to make the right decisions for your commercial property. Below we explain three key points you should know about service charges in a commercial lease.<\/p>\n\n\n\n

1. What to Include  <\/h3>\n\n\n\n

The service charges in your lease account for the costs to maintain shared areas of your commercial property. Accordingly, you must ensure that your service charge provision accurately reflects this financial burden. It is critical your property is maintained well and appeals to prospective and current tenants. Therefore, you will want to make certain that you claim the costs you incur completing this through service charges.<\/p>\n\n\n\n

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Typical areas that service charges will cover include:<\/p>\n\n