Commercial service charges: complying with accounting rules

When managing commercial property portfolios, unregulated service charges are one of the hidden costs which are totally unregulated. David Barrass, managing director of Property Solutions highights the key issues to consider when preparing the accountant’s report for commercial service charges following the release of new ICAEW guidance

Commercial service charges, which represent an unregulated sector estimated to be worth nearly £6bn in England and Wales, have been in the spotlight in the property sector for some time. Service charges are defined by the Royal Institution of Chartered Surveyors (RICS) as a ‘means by which the landlord recovers from tenants all landlord expenditure related to the repair and maintenance of the common parts of the building, plant and machinery and the provision of common services’.   

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