Managing service charges in commercial property

The latest RICS service charge guidance has been published in the 2nd edition of its Service Charges in Commercial Property Professional Standard. The updated standard improves how service charges are managed, promoting transparency and fairness. We’ve reviewed all our procedures to ensure they meet the new requirements.

It takes effect for all service charge periods starting from 31st December 2025 – applying to budgets ending 31st December 2026 onwards. There’s still time to adapt, but not much.

The changes cover tenant communication, budget management, and how landlords can use forward funding for major projects. There are new restrictions on retaining funds for incomplete works, clearer guidance on insurance claims, and updated requirements around utilities and Energy Performance Certificates. It addresses Building Safety Act compliance and Heat Network Regulations too.

The changes should benefit investors, managers and occupiers by creating consistency. Whether you manage a single office or a nationwide portfolio, understanding these changes now means you can plan properly rather than rush to comply.