Landlord dispute - split of utilities

[warp9]

Hi. We have been in this commercial property for nearly 3 years and share the utilities with 2 other tenants. Despite us asking repeatedly over the years, our landlord has never provided a breakdown of how much he has been charged and what he is charging the other tenants. All our lease says is that we must 'pay a fair proportion of costs', which I have no issue with, but just want some transparency to show how what he is charging us has been calculated.

So what I'm looking for is a statement that may be published in a 'best practice' guide or even exists in law, which defines the professional conduct and responsibility a commercial landlord should uphold when splitting utilities between shared tenants. i.e. how is it calculated and is it fair and transparent.

Anyone know of such a statement?
Cheers

[Muncher]

Are the properties individually metered?

[warp9]

Muncher said:

Are the properties individually metered?

Electric yes on a sub meter, gas no, water no. We would have much preferred to have used a meter, however he has just not done this, despite my repeated requests. I understand the other way is pro rata by date occupied and sq ft. I even designed a simple xls which would calculate this, but he hasn't used that either.

We're beyond this now, I'm just after either legislation or best practice guidelines on a landlords responsibility in splitting up utilities between tenants.

[Chrisgr31]

Have a look on the RICS website see if their service charge contract says anything about it?

[surveyor]

Best practice does not really cut it. It's down to the letter of the Lease unfortunately.

[brickwall]

I think if the lease says 'fair proportion' of costs, then you'd be entitled to see some form of evidence that you are indeed paying a 'fair proportion', rather than a number that, for all you know, the landlord is plucking out of his arse.

[Chrisgr31]

brickwall said:

I think if the lease says 'fair proportion' of costs, then you'd be entitled to see some form of evidence that you are indeed paying a 'fair proportion', rather than a number that, for all you know, the landlord is plucking out of his arse.

I am fairly sure the RICS code of conduct on service charges gives details on auditing etc. But its not my field of expertise, I just know my colleagues spend ages dealing woth service charge calculations and disputes!

[surveyor]

Chrisgr31 said:

brickwall said:

I think if the lease says 'fair proportion' of costs, then you'd be entitled to see some form of evidence that you are indeed paying a 'fair proportion', rather than a number that, for all you know, the landlord is plucking out of his arse.

I am fairly sure the RICS code of conduct on service charges gives details on auditing etc. But its not my field of expertise, I just know my colleagues spend ages dealing woth service charge calculations and disputes!

Problem is its just a Code of Practice. Not much force - especially from Landlords not in the RICS.

The Lease should have been drafted with this or proof in mind.

[warp9]

Thanks for the comments. I've found the code of practice on the RICS website which is what I was looking for and contains what I'm after.

Hindsight is a wonderful thing and as this was the first time I've dealt with an independent landlord didn't consider it, but would certainly have a split of utilities clause built into any contract going forward. I didn't and am now doing my best to sort things from here.

I think my case is pretty strong. Time and the courts will tell!