Service charge consultancy

Our approach to service charge consultancy assists commercial tenants to ensure that their service charge costs are fair, reasonable, and that landlords are providing value for money in line with obligations contained within their lease. Through lease auditing, bench marking, and strategic recommendations, we identify savings and add value, delivering savings of thousands of pounds for our clients.

We take a 3 stage approach;

Stage 1 – Lease and Service Charge Provisions Review

We will review key lease terms to clarify service charge obligations and the specific provisions that apply, and assess the apportionment methodology.

Stage 2 – Service Charge Budget Analysis, RICS Compliance and Cost Analysis

We will assess compliance with RICS standards and lease requirements, benchmarking costs against industry standards and analysing variances, along with a review of historic service charge budgets and reconciliations over the previous 5 years to identify trends and any unresolved issues. Finally, we will review historical service charge reconciliations and statements of account to identify potential areas for challenge.

Stage 3 – Recommendations, Strategy, and Implementation

We will make actionable recommendations for challenging identified cost items and establish a strategy for engaging the landlord. We will outline steps for improving budget transparency and compliance, with a roadmap for ongoing review and negotiation, presenting a project plan with clear timelines and milestones, supported by a strategic recommendations. Our team will engage with the landlord as required, to ensure that sufficient information is provided to ensure all costs are fair and reasonable. Finally, we will implement the challenges which are considered unfair or unreasonable.

Alongside our experience in service charge management, we have a wider team who provide expert advice on building maintenance and management. We also understand each client is different and there is a great importance to maintaining good landlord and tenant relationships. To this end, we spend time with our clients to understand their business to provide a tailored service. This approach ensures that tenants maximise cost efficiency and achieves transparency in their service charge obligations, delivering measurable value, whilst creating a foundation for a business to achieve its wider objectives.

Case study – Budget Dispute on Office Space

For a client occupying 20,000 sq ft in a multi-let office, we identified unreasonable service charge items and advised partial payment. By withholding £42,000 out of a disputed £68,000 and pushing for landlord evidence, we secured a credit of £35,000 – keeping these funds with our client, enhancing their cash flow.

Case study – Portfolio Review Saving on Water Charges

In reviewing a balancing charge for one of 200 properties in a corporate portfolio, we discovered the cost of a water leak should be borne by the landlord per lease terms. This correction saved our client over £19,000 in service charges.

Case study – Removal of Sinking Fund Charges

In a service charge review for a multi-let retail and office building, we identified that the lease excluded a sinking fund charge that had been applied. By disputing it, we achieved a budget reduction and an £8,000 saving for our client.