Terms of payment for recoverable service charges

When creating his listing, the owner must choose a method of payment of recoverable expenses.

There are three possibilities:

Provisions for charges with annual adjustment

Rental charges must be recovered for their actual amount. As this amount is not known in advance, the tenant pays a monthly provision for charges.

The provision is set at the outset on the basis of previous results determined at the time of the previous regularisation of charges. On the basis of these figures, the landlord determines the proportion of the charges that can be recovered from the tenant and deducts a provisional annual amount, divided by 12 to obtain the monthly provision.

Once a year, the landlord carries out a regularisation :

• if the provisions are lower than the actual charges: the tenant pays the difference

• if they are higher : the landlord reimburses the overpayment

Recovering charges in the form of a lump sum:

The lump sum for charges is a fixed amount requested from the tenant each month that will not be adjusted according to the charges you actually have to pay.

Be careful, when setting the fixed amount, the amount must not be manifestly disproportionate in relation to the charges that the previous tenant would have paid.

• No annual review
  

The fixed charge is not reviewed annually, its amount is set only when the lease is signed.

•  With annual review
  

The flat rate may be reviewed annually, so its amount may be modified.