Compliance of RICS code of practice for commercial service charges

Abstract

Purpose

The RICS code of practice “Service Charges in Commercial Property” was introduced in 2007 with the intention to promote best practice guidelines in the provision and management of commercial service charges. The paper seeks to review the compliance of the code after two years from its inception.

Design/methodology/approach

The research employs comprehensive literature reviews and documental analysis through a number of publications retrieved from electronic databases, reports, journals, books, and other relevant secondary information. A critical review of the materials gathered is carried out in understanding the key recommendations as set within the RICS code against the current practice.

Findings

Huge gaps are identified between the RICS against existing practice involving several key headings such as transparency, value for money, communication, and responsiveness.

Research limitations/implications

Since the code was only introduced in 2006, limited sources of data available prevents comprehensive results, underlining further discussions on the effectiveness of the code in resolving the critical commercial service charges aspects within the real estate industry.

Practical implications

While the paper intends to raise awareness among the commercial properties stakeholders, recommendations that are made in the paper can be utilised to minimise the gap that exists between the guidelines and the actual implementation by harnessing concerted efforts among the stakeholders in commercial property industry.

Originality/value

This paper provides an in‐depth snapshot of the RICS code of practice to commercial service charges and the progress that has been made towards the application of the guidelines since it was introduced in 2006.

Citation

Nazali Mohd Noor, M., Pitt, M., Hunter, G. and Tucker, M. (2010), "Compliance of RICS code of practice for commercial service charges", Journal of Corporate Real Estate, Vol. 12 No. 2, pp. 135-144. https://doi.org/10.1108/14630011011049568