RICS releases new service charge guidelines

RICS have released the second edition of Service Charges in Commercial Property.

As a professional standard, it becomes effective from 31st December 2025, and should be considered the minimum acceptable standard of performance.

Aimed at commercial property managers and occupiers in the UK, the guidelines “promote best practice, uniformity, fairness and transparency in the management and administration of service charges in commercial property”.

Trace Solutions software is already fully compliant with the guidelines, but you may have to make some changes to cost categories and descriptions. These are user-defined parameters and can be updated easily, but if you require assistance, please don’t hesitate to call the help desk.

Other points to note:

• Service charge budgets, including explanatory commentary, must be issued at least one month prior to the start of the service charge year.

• An approved set of year end service charge accounts must be issued within four months of the service charge year end. These must show a true and accurate record of the actual expenditure constituting the service charge.

• Management fees must relate only to actual work carried out in the management and administration of service charge. Fees for additional duties should not be included in the service charge management fee and now comprise a cost to the landlord.

• Where advantageous insurance rates are secured – for example, from placing group contracts – the value of any discounts should be passed on to tenants in full. This includes any form of incentivised rebates linked to policy performance.

If you’d like to know more about the guidelines, please contact your Account Manager.

If you’re new to Trace Solutions property management software and would like to know more, please call us, email us, or use the contact form below.

We can provide demonstrations online or in person, at your convenience.