Any service charge should reflect communal services which are provided by the landlord rather than being paid for directly by you. These might include such things as reception, security, cleaning, car parking facilities, utility bills and maintenance costs. Insurance is usually handled as a separate charge (see 6 below). In general, the service charge is likely to be higher (in relation to the rent) for shared premises such as serviced offices.
You should check how the service charge is calculated, and investigate whether there is scope for the landlord to overcharge you. You may want to ask to see copies of previous service charge bills.
There may be scope to negotiate a cap on service charges, or to eliminate some elements altogether. A particular point to watch out for is any payments into a 'sinking fund' for future major repairs; you will certainly want to avoid such payments if your own use of the premises will only be for a short term.
