RICS Service Charges in Commercial Property Draft Professional Standard and Guidance 2nd edition 2025
RICS is due to publish the second edition of its Service Charges in Commercial Property Professional Standard in summer 2025.
The Professional Standard offers important guidance for commercial property managers, landlords and occupiers, as well as solicitors and their clients. The new edition will be keenly awaited as a means of addressing key challenges in the management of commercial service charges and ensuring service charge accounts are open and transparent.
The new Professional Standard would be effective for all service charge periods commencing 6 months from publication.
RICS welcomed the opinion of those working within the commercial property sector and, with its consultation ending on 29 October, will now be assimilating industry feedback on the proposed mandatory requirements and best practice provisions.
Highlights of the best practice provisions
The draft sets out 8 mandatory requirements and several best practice provisions to support the core principles, including
- Disclosure of pending insurance claims in relation to costs included in the service charge accounts;
- Disclosure of all sources of income and related income or other benefits to the manager and related entities arising out of the management or provision of services;
- A new cost classification – agreed retention of funds already collected ; and
- “In the spirit of openness and transparency “ it is considered best practice to include a Balance Sheet or Cash reconciliation which should also be included in the scope of any independent reporting accountant review of the service charge accounts.
M+A Partners will publish further updates on the publication of the new Professional Standard as they become available.
For further information on M+A Partners’ Commercial Service Charge Accounting services, please download our brochure or get in touch with me using the details below.
Commercial Service Charge Accounting