Are you paying too much service charge for your office?
A close eye on the details can result in significant savings.
Many companies lease office suites in multi let buildings where the landlord is responsible for the exterior, common parts and the main services. A close eye on the details can result in significant savings because although the ability for the landlords to recover these costs is set out in the lease, often errors are made, or landlords seek to recover more than they are entitled to.
The RICS introduced their Professional Statement in April 2019 which regulated firms and chartered surveyors must comply with, but mistakes are often made, and these can continue for many years.
Most occupiers rarely question these costs but examples of where errors can occur are:
- Incorrect floor areas are being used to calculate the appropriate apportionment of expenditure
- Landlords seek to include costs beyond the scope of the lease drafting, or which are actually improvements
- Caps limiting the amount of service charge which is payable in a specific period are missed
We regularly review our clients service charges and whilst most are fine on occasion we have been able to identify errors and secure very significant savings.
For more information on how Jaggard Macland can support your company with it commercial property please contact Simon Harper.