Correspondence: Mohd Nazali Mohd Noor, School of the Built Environment, Peter Jost Enterprise Centre, Byrom Street, L3 3AF Liverpool, UK. E-mail: M.N.Mohd-Noor@2008.ljmu.ac.uk

¹is a research assistant at the School of the Built Environment, Liverpool John Moores University.

²is a professor of Facilities Management at the School of the Built Environment, Liverpool John Moores University.

Received 8 February 2009; Revised 8 February 2009.

Abstract

As certain types of property have become more complex and customers' or occupiers' perceptions and expectations have evolved, the services provided by the owners have had to be improved correspondingly. A modern service charge may include provision for the recovery of many different properties or facilities management-related services. The existing practice of service charges recovery for commercial properties is not transparent enough to enable the tenants to understand exactly what they are paying for. The service charge costs may include enhancement of the building, where it can be justified following the analysis of reasonable options and alternatives. The practice of service charge should rest on achieving equitable benefits for both parties: the owner and the tenant.