Property Management Checklist - British Retail Consortium

Service Charges•••••••••••••••Service charges operate on a not for profit/not for loss basis.Ensure your service charge covers only the service provided and nothingmore.Check that the service charge bill represents what was agreed under thelease.Is your service charge the correct percentage for the shop space in thecentre/building?Don’t contribute to the service charge for a food court, unless you’reoperating in it.Question and challenge your service charge bill.Insist on having sufficient details to understand your bill and what you arecontributing to.Work with the landlord/agent to understand the bill and iron out anydiscrepancies.Ensure the management fees are transparent (operated on a not forprofit/not for loss basis).Ensure your bill and the relationship you have with your landlord/agent iscompliant with the Service Charge Code of Practice.Examine whether the tendering process in the centre/building is asefficient and cost effective as it could/should be.Procurement practices should maximise value for money.While there will be commission on insurance, make sure it is reasonable.Don’t agree service charges as rent.You shouldn’t be covering refurbishment costs in the last five years ofyour lease.Green/Energy use issues• Encourage the landlord to install sub-metering (you can’t reduce what youcan’t measure).• Encourage the landlord to set up a working group, made up of thelandlord and a representative from each tenant, to address environmentalperformance in the building.• Develop an action plan for the centre/building which both tenants and thelandlord are signed up to.• Landlords should invest in improvements to the building, tenants shouldhelp cover the costs of maintenance.British Retail Consortium, 21 Dartmouth Street, London, SW1H 9BP020 7854 8900. info@brc.org.uk. www.brc.org.uk.