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 4 stage approach which goes beyond simple cost reduction;

Stage 1 – Review of lease and service charge provisions

We begin by thoroughly reviewing your lease to fully understand your contractual position
before moving forward.

Stage 2 – Reporting and strategy

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 – Challenge and negotiation

Our team engages proactively with landlords to ensure full transparency and that all costs are demonstrated to be fair and reasonable. Where charges appear excessive or unjustified, we challenge them robustly, with the aim of securing savings and credits on behalf of our clients. We also undertake historic audits of service charges when necessary and seek to recover any credits on account through proactive engagement with landlords

Stage 4 – Consultation with landlord

We work collaboratively with landlords and managing agents to, agree format and time frames for service charge budgets and year-end reconciliation in line
with RICS Professional Standards, identify areas of exceptional or high-value expenditure for advance discussion, and finally establish opportunities for service re-tendering or procurement to provide greater value.

Case study – Budget dispute on newly developed office space

We reviewed the service charge budget for a newly developed, partially occupied site in Manchester, identifying that full service costs were not applicable during the first year. By challenging the budget and requesting a more accurate interim version, we secured a 19% reduction, equating to approximately £89,000 in savings until the building became fully operational.

Case study – Portfolio review saving on water charges

On 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.