Earlier this week, the RICS (Royal Institution of Chartered Surveyors) launched a new professional statement governing service charges in commercial property. Chris Brook, Partner and Head of Property Management at Bruton Knowles stresses why the industry needs to act now.
The new mandatory requirements ensure that any costs associated with property repairs, maintenance and services are transparent, fair and justified when associated with commercial service charges. Under the new requirements, rogue landlords and their managing agents will be unable to hide unreasonable costs. If they do, they will be held accountable.
Produced after extensive consultation and collaboration from owners, occupiers, managing agents and professional bodies representing surveyors, lawyers and accountants, the new professional statement marks a major step forward in regulating landlords and their agents.
As commercial property specialists, the mandatory requirements and continuing evolution in best practice will provide our expert team with added assurance, ensuring that we continue to provide the highest level of service to our clients.
When new standards such as these are announced, we always ensure that our clients are aware that we incorporate the requirements and best practice into our operations as quickly as possible. Whilst the professional statement does not become effective until service charge periods commencing from 1st April 2019, we advise all landlords and managing agents to ensure early adoption.
Rogue landlords and managing agents beware - the wider use of mandatory requirements will help to remove non-compliant parties and managing agents from the market.
Bruton Knowles always recommends actively keeping abreast of new policy, regulations and legislation if you own or occupy property. Seeking the help of an expert who can advise you on your obligations before it’s too late is always recommended.