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Research to find ways of improving commercial service charge industry

03 December 2007

The issue of commercial service charges can cause disputes between landlords and tenants. The study entitled ‘Options for Change’, will look at what options are available to the industry to improve the management of buildings, reduce the incidence of disputes between landlord and tenant and improve value for money.

Two London Business School MBA students, Avanti Patel and Joysy John, are undertaking a ground breaking study into the UK’s commercial service charge industry. As part of the study, the students will be conducting a stakeholder analysis of leading commercial property landlords and owners, tenants, managing agents, trade bodies, educational establishments and industry advisors. They will be seeking the views of stakeholders and senior sector figures on the state of the industry in order to present an objective report to be published in April 2008.The students will be supervised by Assistant Professor Stefan Thau, a faculty member of London Business School’s Organisational Behaviour department, who specialises in resolving conflicts in business.

Commenting on the study, Joysy John says: “This is a very exciting project to be undertaking for our MBA. It has real potential to define and direct the future of the UK’s service charge sector and we welcome contributions from as many stakeholders as possible involved in commercial service charges.”

Her research partner Avanti Patel continues: “Our aim is to determine a strategic view of the options available to the industry; to address and make recommendations for reducing and, ultimately removing, conflicts of interest that exist, improve value for money and limit disputes.”

The study is being supported by leading service charge consultancy Property Solutions Ltd (PSL).
PSL managing director, David Barrass says: “The results of this study, when made public next year, will give all industry stakeholders an independent view of the issues that undoubtedly exist in the sector.”

Anyone wishing to contribute to the study should contact either Avanti Patel or Joysy John on apatel.mba2008@london.edu / jjohn.mba2008@london.edu .


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