Repairs and service charges aren’t glamorous, but they’re essential to successful commercial property ownership. When I manage them well, my buildings stay safe, compliant and profitable. When I don’t, things unravel fast.

In this episode, I share how I deal with repairs and service charges, and what you should be looking out for in your portfolio.

I explain the difference between FRI and IRI leases and why it’s a myth that only the top floor pays for the roof or the ground floor pays for pest control — everyone benefits from a safe, dry building, so everyone contributes.

I also break down a typical service charge budget:

• Soft services: cleaning, refuse, pest control

• Hard services: fabric repairs, emergency lighting, fire alarms

• Utilities: communal electricity, water, reserve fund

• Management: accounting, risk assessments, management fees
  

I talk through how costs are usually apportioned — pro-rata by floor area or as fixed percentages set out in the lease — and why charging regularly, with reserves for bigger items, avoids nasty surprises.

If tenants don’t pay, landlords aren’t powerless: interest, debt recovery and even forfeiture are options. But the best outcomes come from following RICS best practice — resolving disputes quickly, correcting errors, and using ADR (Alternative Dispute Resolution) such as mediation or expert determination. The courts expect it under the Civil Procedure Rules, and it’s nearly always cheaper and faster than litigation.

👉 Book a call with me and my team at NC Real Estate to review your service charge budgets: CLICK HERE