Service charge, explained
What service charge pays for, how it is set, and the questions to ask before you sign.
FrameScale Consultancy · · 4 min read
Service charge pays for the shared parts of a building: security, cleaning, lifts, backup power, common-area electricity and water, and the managing agent.
Questions to ask
- Is it included in the rent or billed separately?
- How often is it reconciled against actual costs?
- Does it include a sinking fund for big repairs?
- Is VAT charged on it? (Usually yes for commercial property.)
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