Code updated

The Royal Institution of Chartered Surveyors (Rics) has launched the second edition of Service Charges in Commercial Property, a code of practice intended to end conflicts between commercial property owners and occupiers.

Leading industry bodies endorsed the updated code which builds on the themes of the first edition with greater emphasis on communication, timeliness and transparency between parties.

Two “model lease clauses” are available in the new code to help the legal profession ensure these standards are being met in new and renewal leases. The guidance now requires occupiers to be proactive in their communication with managers and investors and issues around sustainability are addressed for the first time. Compliance with the code also requires the adoption of the Industry Standard Cost Classifications.

A Rics spokesman said more could still be done to resolve potential disputes. “New elements such as the two example lease clauses included in the updated edition should help reinforce these standards from a contractual perspective, and ensure smoother relations between property owners and their tenants,” he said.