SAY GOODBYE TO CONFUSING SERVICE CHARGES
The RICS Professional Standard for Service Charges in commercial property is about to flip the script on how landlords handle service charges in UK commercial properties. Starting 31 December 2025, expect a whole new level of fairness, honesty, and straight-talking transparency. These changes aren’t just tweaks – they’re a complete upgrade to how your service charges will be managed.
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WHY THE BIG OVERHAUL?
The new rules are here to:
- Make service charges crystal clear.
- Keep landlords honest with fast, accurate financial reports.
- Stop endless arguments over who owes what.
- Line everything up with the latest best practices.
In short: fewer headaches, less confusion, and better relationships all around.
MUST-SEE RULE CHANGES YOU CAN’T IGNORE
Budgets Need to Land Earlier
From now on, landlords must send information with proper explanations at least a month before the new service charge year kicks off. Before, these came at random times, making planning difficult. Now, you’ll get them early enough to actually budget. What a concept!
Year-End Accounts Deadline: No More Waiting Forever
You know those service charge accounts that used to take up to a year to show up? Not anymore! Landlords now have just four months to send them after the year ends. You’ll know sooner what you owe – or what you’re owed.
Late? They’ll Have to Explain Why
If your landlord drag their feet on sending the budget or accounts, they must tell you why they’re late and when you can expect them. No more ghosting tenants with radio silence.
THE APPORTIONMENT MATRIX – NOW IN FULL HD
Here’s a big one: landlords need to share a detailed Apportionment Matrix showing exactly how your charges are calculated. Think of it like getting a behind-the-scenes look at the maths instead of just a mysterious bill. You’ll finally see what you’re paying for and why.
WHAT THIS MEANS FOR LANDLORDS AND PROPERTY MANAGERS
Time to Get Ahead of the Game
Accurate, on-time reports aren’t a “nice-to-have” anymore – they’re a must. That means tighter systems, better processes, and clearer communication with tenants.
Expect Happier Tenants
The clearer things are, the less reason tenants must dispute. This update is a win-win for everyone: tenants get clarity; landlords avoid awkward arguments and potential legal battles.
Build Trust
Being upfront and timely with service charges builds massive trust, making it more likely your tenants will renew instead of running for the hills when their lease is up.
What’s In It for Tenants?
If you’re a tenant, here’s what these changes mean for you:
- Budgets before the year starts, so you can plan instead of guess.
- Accounts within four months, so you know where you stand.
- A breakdown of costs you can actually understand, no accounting degree needed.
Basically, you’ll finally feel like you’re in the loop – because you will be.
HOW TO GET READY WITHOUT LOSING SLEEP
Here’s what landlords and property managers should do now to stay on top:
- Update your workflows to hit those new deadlines.
- Add clear commentary and detailed apportionment matrices to your reports.
- Train your team so everyone knows the drill.
- Let your tenants know the changes are coming – and that you’re ahead of the curve.
Being prepared isn’t just smart – it’ll make you look good too.
THE PERKS OF PLAYING BY THE NEW RULES
Get it right and you’ll enjoy:
- Tenants who trust you.
- Fewer messy disputes and faster fixes if issues crop up.
- A shiny reputation as a landlord who does things right.
- A competitive edge with tenants looking for fair, transparent property partners.
WE’RE HERE TO HELP YOU
Our experienced Service Charge Team is ready to get your properties and processes fully prepped for the new rules. We’ll help you:
- Upgrade your service charge systems to meet the standard.
- Simplify your budget and account processes.
- Keep your tenants happy and informed.
- Stay compliant so you’re not caught off guard.
Don’t let these updates leave you scrambling at the last minute. Get ahead now and show your tenants you’re on top of things.
LET’S TALK
We’re here to make sure you breeze through these changes and keep your tenants smiling. Reach out to our Service Charge Team today to get started.
