It is a requirement under the Retail Leases Act 2003 Section 46 for Landlords to provide Tenants an estimate of outgoings for the forthcoming financial year in the month prior. We complete these in May of each year. The estimate is not only a requirement under the Act but also assists tenants with budgeting. Outgoings estimates are something often overlooked by those who might self-manage or inexperienced commercial property managers. If you have any questions about this topic or would like an obligaiton-free discussion about working with us please don’t hesitate to get in contact.
Below is an extract from The Act:
The tenant must be given the estimate of outgoings—
(a) before the lease is entered into; and
(b) in respect of each of the landlord’s accounting periods during the term of the lease, at least one month before the start of that period.
The tenant is not liable to contribute to any outgoings of which an estimate is required to be given to the tenant as set out in this section until the tenant is given that estimate.