Service charge Flashcards
1
Q
What should and should not service charge include?
A
Should not include any improvement costs above the costs of normal maintenance, repair or replacement.
Service charge costs may include enhancement of the fabric, plant or equipment, where such expenditure can be justified following an analysis of reasonable options and alternatives, and with regard to a cost-benefit analysis over the term of the occupiers’ leases.
2
Q
What if the cost of refurbishment results in higher rental values?
A
When refurbishments result in higher rental values, the owner is to be responsible for the cost of enhancements or improvements above those of maintenance.
