Service Charge Disputes - A Brief Guide

A common element of property management that can often lead to disagreement between landlords and tenants is service charges. Service charges cover repairs, maintenance, and services for the property, and disputes are common because of a perceived lack of clarity or unexpected price increases.

What is a service charge?

A service charge is a payment made by a tenant to their landlord, usually in addition to rent, as a contribution to the costs incurred in providing services to a property. The lease will specify a list of services, which may be divided into services the landlord is required to provide and services the landlord may provide (but without being under any duty to do so). The tenant must reimburse the landlord through the service charge regime if the landlord provides these services.