Service charges

Service charges are the costs incurred by the owner or manager of a building for the maintenance, management and operation of common areas and shared facilities. These expenses are typically allocated to all tenants proportionally, based on their usable floor area or unit count.

Common components include cleaning of entrances and corridors, utilities for common spaces, waste disposal, repairs to roofs and facades, insurance of shared elements, and sometimes management fees. The exact composition is property-specific and is detailed in the lease agreement or annual service charge estimate provided to tenants.