NEW regulations coming into force later this year have implications for residential landlords and their tenants.

The vast majority of leases of multi-occupational buildings will contain a service charge clause.

Such a clause obliges the tenant to contribute to the cost of repairs and maintenance to the common parts of the building and, more often than not, to the buildings insurance premium and the landlord's costs of management.

The extent of services covered by the service charge depends on the terms of the particular lease.

The service charge will be in addition to rent.

From October 1, whenever a landlord makes a demand for the payment of service charges, a summary of the tenant's rights and obligations must accompany it.

The purpose of the summary is to ensure that the tenant is made aware of the rights available to them and their obligations.

Although not imposing an entirely new obligation upon landlords, The Service Charges (Summary of Rights and Obligations, and Transitional Provision) (England) Regulations 2007, which will introduce this rule in October, goes further than the existing requirement by prescribing the content of the summary, that it must be legible and be in a typewritten or printed form of at least ten point.

Failure to send this summary with a service charge demand will grant the tenant a right to withhold payment.

Furthermore, during the period when a service charge payment is being withheld by a tenant due to the landlord not supplying a summary, any clause within the lease which relates to nonpayment will not have effect.

Landlords would be advised to begin providing a summary, in accordance with the regulations, sooner rather than later and be aware that any demand served before October 1 for payment of service charge on or after October 1 must be accompanied by a summary.

* Adam Wood is a member of the Commercial Property team at Blackett Hart & Pratt LLP Solicitors in Darlington. For more information, contact him on (01325) 466794.