Who Pays Service Charge: Landlord or Tenant?

Landlords Tenants

Posted in Apr 11 , 2025

Who Pays Service Charge: Landlord or Tenant?

Whenever you need to rent a property in the UK as a tenant or a landlord, there is always a common question that circles in your head: who pays service charge landlord or tenant? There is an increase in the number of flats and properties on lease within the country, especially in major cities like London, so it is important to know the exact service charges that both parties will bear. Such charges keep changing, creating confusion in minds, so the best way is to define every term in the tenancy or the lease agreement. Here’s a brief about what exactly this is about:

What Is a Service Charge?

As the name suggests, landlords collect a fee to cover all the costs of maintaining the services of the property or the building. It includes all cleaning of staircases, and the maintenance of lifts, security, gardening, and other basic services, such as heating and lighting. For the flats, the service charges may also mean the insurance of building and management fees or other repair funds. However, it may need to be figured out by both parties as to who will be responsible for the charge: the landlord or the tenant?

Does the Landlord or Tenant Pay?

It all comes down to the type of tenancy agreement you have. When discussing leasehold property, the agents charge the landlords or leaseholders for the services. In many cases, the landlords pass these service costs to the tenants. As per the Assured Shorthold Tenancy (AST), if the agreement already specifies that tenants are responsible for charges, they are legally bound to do so; however, if it’s not specified, landlords will have to cover all the service charges themselves.

Is the Service Charge Included in the Rent?

Oftentimes, we have seen the landlords add these service charges within the monthly rent so that tenants don’t feel they are giving anything extra other than rent. This approach is very common in single-let family properties, but landlords take service charges separately in larger living places like blocks or flats. Due to the nature of work in the building, the tenants get a breakdown of the invoices that reveals the charges. If you are a tenant, you should ask upfront whether the service charges are included in the rent. If they are not, you should get a clear idea of the expected cost and what it will cover.

Understanding the Tenant's Rights

Under the Landlord and Tenant Act 1985, tenants can request a written account summary and even inspect the documents to determine whether the charges are accurate. For example, if a tenant pays £ 130 in monthly charges, they are entitled to know where every penny is spent, whether on cleaning, gardening, maintenance, or lift repair. Disputes or trust issues can be avoided if landlords are transparent about these charges.

What About Variable Service Charges?

Variable service charges are another essential aspect, as they change yearly depending on costs. Tenants will pay higher charges with each passing year unless a fixed rate is decided at the start of the agreement. Landlords must highlight this aspect in the agreement to avoid misunderstandings, as not explaining it could raise questions in the tenant's mind.

Disputes and Misunderstandings

When the tenants feel like they are not getting the quality of services against the monthly charges they pay, for example, if the lift of the building is frequently out of service or the cleaning is not regularly done, the tenants start to question the service charges and the work done against them. When such cases happen, the landlords or the estate agents working on their behalf act quickly to resolve the communication gap and any problems to avoid legal complaints or court proceedings.

Who Pays Service Charge Landlord or Tenant? The Clear Answer!

Coming back to our actual question, the answer is always the tenancy agreement. If the agreement states that it will be the tenants' responsibility, they must pay. If it’s the other way around, landlords must cover the expenses. It also highlights how important a well-written agreement is and how the expectations should be decided for both parties.

Still, some landlords add service charges to the rent to simplify matters and keep the property appealing to new tenants. Others, with more detailed amenities, take a separate approach to service charges.

How Cribs Estates Can Help?

Cribs Estate specialises in understanding and acceptably managing the service charges to tenants and landlords. We offer a complete property management service that handles all the aspects for you, including tenant questions, communication, and handling the management work that needs to be done in the building, whilst informing both parties about tasks completed.

The professional support we offer landlords will help them avoid mistakes whilst allowing them to focus on growing their portfolios. Whether new to the property rental market or already invested in properties, Cribs Estates is always ready to make their processes simple and stress-free whilst giving them peace of mind.

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