Deadlines and Time Limits for Service Charge Settlements

The landlord must send the service charge settlement within a reasonable period after the end of the service year, usually within six months. Any delay must be justified, otherwise the right to settlement lapses. Tenants must respond with comments within three months of receipt. Advance payments are advances and may not be considered as final settlements without specification. In the event of untimely settlement, the tenant retains the right to offset advances against rent. The Supreme Court recently ruled that a 'reasonable period' depends on the circumstances, but is rarely longer than one year. Keep proof of payments. As a tenant, if exceeded, you can involve the Rent Tribunal to enforce it. Exceeding the time limit leads to prescription of claims. Landlords may not demand post-calculation after two years. This protects tenants against perpetual uncertainty. Practical tip: note the dates of advance payments and demand an annual overview. By knowing the time limits, you prevent disputes and financial surprises. These rules ensure efficient and fair settlements. (198 words)