Workplace glossary

What is Service Charge?

Definition & practical guide1 min read

The service charge is the tenant contribution to running the building: common-area cleaning, security, reception, lifts, HVAC maintenance and shared utilities, charged per square metre on top of rent. In multi-tenant buildings it commonly adds a two-digit percentage to the rent bill and is reconciled annually.

On this page

It belongs inside total cost of occupancy; treating it as noise is how per-desk budgets drift.

Common questions

What does Service Charge mean in simple terms?

The service charge is the tenant contribution to running the building: common-area cleaning, security, reception, lifts, HVAC maintenance and shared utilities, charged per square metre on top of rent. In multi-tenant buildings it commonly adds a two-digit percentage to the rent bill and is reconciled annually.

How is Service Charge measured and reported?

It belongs inside total cost of occupancy; treating it as noise is how per-desk budgets drift.