What are the service charges when renting an office space

What are service charges and what do they include?

When you rent an office space, you pay service charges (also called service costs) on top of the rent. But what exactly are you paying for? For office space there is no fixed statutory definition of service charges, so what they include depends on the specific lease agreement. In essence, service charges consist of supplies and services that are often provided by the landlord and passed on to the tenant. These costs relate in the first instance to building-related costs incurred by the landlord for the tenant. Examples are maintenance of the air conditioning system, internet, cleaning of the common areas, municipal charges, reception and security. Water and energy, such as gas and electricity, are treated as utilities rather than service charges in the model lease agreement for office space of the Dutch Council for Real Estate (ROZ, Raad voor Onroerende Zaken), and have their own provisions. Costs such as insurance premiums are often not included in the service charges.

This article describes how service charges work for offices in the Netherlands. Rules and practice differ per country.

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An administration fee may be charged on the total service charges. Under the ROZ model, the landlord bases its fee on the costs of the supplies and services and the related administrative work. The level of that fee is agreed in the lease. When a lease for an office space is signed, little attention is often paid to what the service charges contain, even though they form an important part of the tenant's payment obligation.

Statutory regulations on office space service charge

The service charges are listed separately in the lease agreement. However, this is often a non-exhaustive list. As a result, the cost overview in the lease is limited to an estimate of the costs, and it can remain unclear to the tenant throughout the rental period which costs exactly qualify for settlement. Unlike residential rentals, office rentals have no specific statutory rules on service charges. There is therefore regular discussion between tenant and landlord, for example about the amount of the service charges or a late final settlement. Because there is no statutory regulation, it is important for the parties to establish clearly which items fall under the service charges, to avoid discussion later about which costs can be charged.

Service charges in the office lease agreement

Tenant and landlord usually agree that the tenant pays a monthly or quarterly advance on the service charges and that a final settlement is sent to the tenant at the end of a period, usually one year. In practice this is often arranged according to the ROZ model lease agreement for office space and its general provisions. The most recent model was established in 2025. Contracts based on an earlier model, for example from 2003 or 2015, may have different article numbers and time limits. Always check which model your lease is based on.

In the general provisions of the 2025 model, utilities (article 18) and service charges (article 19) are regulated separately. For service charges the following applies, among other things:

• The landlord determines the fee based on the costs of the supplies and services and the related administrative work (article 19.3);
• If the leased space is part of a larger building, the landlord determines a reasonable share of the costs. If parts of the building are vacant, your share may not become higher than if the building were fully occupied (article 19.3);
• After the end of the service charge year, the landlord provides an overview per cost category, stating how the costs are calculated and your share, so that you can verify the allocation yourself. The starting point is that this happens within 12 months after the end of the year. If the landlord cannot do so in time, it must say so and give reasons (article 19.4);
• After the lease ends, a final overview follows for the period not yet settled, in principle also within 12 months after the end of the year concerned (article 19.5);
• Any difference between the advance payments and the actual costs is paid or refunded within three months after the overview is provided. If you dispute the overview, the payment obligation remains in place (article 19.6);
• The landlord may adjust the advance during the year to the expected costs and may, after consultation, change the type and scope of the supplies and services (articles 19.7 and 19.8);
• The statutory limitation period starts after the end of the year to which the service charges relate (article 19.4).

For utilities, meaning water and energy, the model contains a similar arrangement in article 18. If the office has its own connections, the tenant in principle concludes the contracts with the utility companies directly. If the leased space has no separate connections or the landlord supplies the utilities, you settle with the landlord. Individual metering to show actual consumption is permitted (articles 18.1 and 18.9).

In practice, tenants often find the final settlement unclear because the items do not show exactly which supplies and services are being charged. It is also common for the final settlement to be much higher than the advances paid. It is good for landlords to check regularly whether the service contracts still match the tenant's consumption.

Serviced office rental in cities such as Amsterdam

In addition to conventional office space with a fixed rental price and the associated service charges, there are also providers that rent out office space as an all-in concept, also known as a business center. This means that you agree a fixed amount in advance for all additional services and supplies and extra facilities such as unlimited coffee, tea and fruit, use of office furniture, internet, telephony, etc. You then rent an office space for a fixed amount per month, including the facilities of the office building, and the costs are easier to predict in advance. Do check exactly what is included and which services are charged separately. Serviced offices are widely available in larger cities such as Amsterdam.

Avoid ambiguities in service charges for office space

Uncertainty about service charges can usually be avoided. Tenant and landlord should make clear agreements about what the service charges contain. This means creating clarity on organizational, contractual and financial matters. Organizationally, it is important to agree how the final settlement is drawn up, within what period it must be provided to the tenant and how it is approved. Contractually, it is important to know which supplies and services are provided, at what quality and with what frequency. This allows the tenant to make a well-considered choice about the content and quality that matter to the company.

All of this translates into costs: the service charges. The tenant then has a good insight into the expected costs and can better predict the rental charges and additional service charges for the duration of the lease. If both parties stick to the agreements, checking the annual final settlement runs more smoothly. This prevents discussion and can save the tenant money, time and annoyance.

What should you check regarding service charges?

• Ask for an overview of the supplies and services per item, with the budget for the current year and the final settlement of the previous year for the same building;
• Check on what basis the costs are allocated, for example per m² of lettable floor space, and how high the administration fee is;
• Ask whether vacancy in the building affects your share of the costs;
• Agree within what period you receive the final settlement and to what extent you can inspect the underlying invoices;
• Keep in mind that disputing a final settlement does not suspend the payment obligation under the ROZ model: you pay first and discuss the difference afterwards.

Do you want to know more about what renting an office space costs? Then read our article on the average rent for office space per m².

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