Residential Service Charges: A Practical Guide For Landlords

One common issue faced by landlords and managing agents of leasehold properties is leaseholders challenging the reasonableness of service charges.

When determining whether a particular service charge item is payable, the first step is to assess whether it falls within the service charge provisions of the lease.

If it does, the Landlord and Tenant Act 1985 provides that:

The amount of any advance payment for service charges must be reasonable.

Any costs that fail these reasonableness tests cannot be included in the service charge. Tenants have the right to apply for a determination as to whether a service charge is payable under section 27A of the Landlord and Tenant Act 1985 (LTA 1985).