The Royal Institution of Chartered Surveyors (RICS) has issued a new code of practice for service charges in commercial properties situated in England and Wales.

Coming into effect from April 1, 2007, the code states that any service charges should be run on a “not for profit, not for loss” basis, to provide “best value” services, and with good communication and transparency between owners and occupiers.

Fiona Limbrick, partner in property management at Rapleys, says: “This will mainly affect those car dealers that are on retail parks or other shared premises.”

Though RICS cannot enforce the code on non-members, landlords are advised to ensure their agents and solicitors are familiar with the details as compliance to the best practice principles is advised.