Service Charge and Recovery Advice
A landlord ideally wants to have a clear lease, with all the provision of service charges (such as security, repairs, and maintenance) being met by the tenant. This can be complicated in a multi-tenanted building.
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The best way to achieve this where there are multiple tenants is for the landlord to control the services required and issue a service charge to the individual tenants to recover the costs incurred.
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What can a Commercial Landlord Recover Under a Service Charge?
As a general rule, a landlord cannot recover the cost of items which are not clearly included in the lease and are of no benefit to the tenants, and all service charges must be fair and reasonable.
Beware the ‘sweeper clause’. When it comes to advising on service charges, our decades of experience in leasehold management are invaluable. For example, ‘sweeper clauses’ (e.g. a 10 percent management fee) relating to service charges are narrowly construed by the Courts and this may result in your tenant not having to pay the service charge at all.
Service Charge Arrears
If you find yourself in a situation where your service charges are in arrears, we can offer our services, not only as property law specialists, but as debt recovery specialists as well.
Our specialist debt recovery division has an enviable reputation throughout the UK of collecting income for landlords quickly and efficiently, and we seldom need to take County Court action to obtain payment.
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Whether you've got questions or you're ready to get started, our team are ready with expert legal advice.
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