Nc Real Estate Podcast

Repairs and service charges aren’t glamorous, but they’re essential to successful commercial property ownership. When I manage them well, my buildings stay safe, compliant and profitable. When I don’t, things unravel fast.In this episode, I share how I deal with repairs and service charges, and what you should be looking out for in your portfolio.I explain the difference between FRI and IRI leases and why it’s a myth that only the top floor pays for the roof or the ground floor pays for pest control — everyone benefits from a safe, dry building, so everyone contributes.I also break down a typical service charge budget:Soft services: cleaning, refuse, pest controlHard services: fabric repairs, emergency lighting, fire alarmsUtilities: communal electricity, water, reserve fundManagement: accounting, risk assessments, management feesI talk through how costs are usually apportioned — pro-rata by floor area or as fixed percentages set out in the lease — and why charging regularly, with reserves for bigger items, a