Managing Rent, Rent Review and Service Charge
Having appropriate documentation for the collection of rent and service charge is key to the success of a property rental business.
These Rent and Service Charge documents include templates for rent demands, standing orders and rent reviews, as well as service charge documentation.
If issues arise in relation to non-payment of rent or service charge, landlords will find relevant documents in our Breaches of the Lease and Commercial Rent Arrears Recovery (CRAR) subfolders.
- Standing Order Form for Commercial Tenant
- Rent Demand for Commercial Lease
- Rent Authority Letter
- Letter from New Landlord
- Rent Review Memorandum
- Service Charge Demand for Commercial Property
- Estimated Service Charge Statement for Commercial Property
- Service Charge Apportionment Schedule for Commercial Property
- Actual Service Charge Statement for Commercial Property
Managing Rent, Rent Review and Service Charge is part of Property. Just £38.50 + VAT provides unlimited downloads from Property for 1 year.
Frequently Asked Questions
How do I put up the rent during a commercial lease?
Only through the rent review mechanism in the lease. Most business leases provide for review at fixed intervals, commonly every five years, usually upward only to open market rent. You cannot simply raise the rent at will. Serve any required trigger notice on time. This sub-folder has rent review documents to operate the clause correctly.
Can I recover the cost of running and repairing the building from my tenants?
Only as the lease allows and only your proper actual cost. Service charge recovery depends on the lease wording. Where you are RICS regulated the current professional standard, in force from 31 December 2025, says you must not profit from services and must charge a fixed management fee rather than a percentage. This sub-folder has service charge documentation.
My tenant has not paid the rent. What is the quickest first step?
Send a clear rent demand or reminder before escalating. A prompt written demand often resolves it and creates a record. If it does not, your options include Commercial Rent Arrears Recovery, suing for the debt, drawing on a rent deposit or forfeiture. This sub-folder has rent demands and standing order forms, with escalation documents in the Breaches and CRAR sub-folders.
How is commercial rent review usually calculated?
Most commonly by reference to open market rent at the review date, assuming a hypothetical letting on the lease terms. Some leases instead use index linking, fixed increases or turnover. The lease sets the method and any assumptions and disregards, so read it before you start. This sub-folder has rent review documents to help you run the process.
Do I have to provide service charge accounts to my tenants?
Good practice, and usually the lease, requires it. The RICS professional standard expects transparent budgets and certified accounts issued to tenants, so they can see that costs are proper and not inflated. Clear accounting reduces disputes and challenges. This sub-folder's service charge documentation supports a transparent process.