From 1 April 2019, the Royal Institute of Chartered Surveyors (RICS) will introduce their new Service Charge professional statement affecting landlords and tenants of commercial property.
The changes will apply to RICS members and regulated firms throughout the UK. The new service charge requirements are more prescriptive than the current regime and set out mandatory requirements for landlords. And while much of the guidance remains the same as the previous Code of Practice, there are a number of updates that will affect those in the industry.
It will also have the regulatory effect of formalising the Code within the RICS best practice framework.
The new changes are particularly noteworthy for those involved as disputes between landlords and tenants often relate to the level of service charges levied. Therefore both parties — landlords and tenants — will need to be aware of the requirements of the updated service charge regime.