Dispute-proof tenant statements ensure clarity, compliance, and transparency between landlords and tenants. By following RICS standards, documenting charges, using accrual-based accounting, and implementing independent reviews, landlords can significantly reduce disputes. Properly structured statements also build tenant trust and strengthen long-term property management relationships.
Tenant statement disputes remain one of the most frequent sources of conflict between landlords and tenants, especially in commercial leases. According to property industry surveys cited by RICS and the Property Ombudsman, a majority of UK service charge disputes between 2021–2024 were linked to incomplete or unclear statements, though no official figure of 60% is published by RICS.
The primary reasons disputes occur include:
If landlords fail to attach receipts or maintenance logs, tenants may believe costs are inflated or fabricated. This is particularly problematic in the UK, where the Landlord and Tenant Act 1985 requires service charges to be “reasonably incurred and evidenced.”
How do unclear service charge allocations lead to tenant challenges?
In mixed-use developments, costs like security or landscaping may be unevenly distributed. Without a clear breakdown, tenants paying higher percentages often dispute fairness.
Are disputes more frequent in residential or commercial leases?
Commercial leases see more disputes due to higher amounts at stake. For instance, a 2023 British Property Federation survey found that 72% of commercial tenants had contested at least one service charge in the past five years.
A tenant statement should go beyond a simple invoice; it should act as a legally defensible record of charges and payments.
Key elements include:
How should landlords structure rent and service charge breakdowns?
Each charge should be itemised, e.g., “Security – £15,000 (allocated 20%)” rather than lump sums. Transparency reduces disputes.
What supporting evidence must be attached?
At minimum, copies of vendor invoices, utility bills, and contractor contracts. In the UAE, the Dubai Rental Dispute Settlement Centre frequently dismisses landlord claims if sufficient supporting documentation is not provided.
Which accounting principles are acceptable in 2025?
The shift to accruals accounting (rather than cash basis) is now the professional standard under RICS. This ensures costs are recorded when incurred, not when paid, improving accuracy.
How do UK and UAE obligations differ?
Requirement | UK (RICS / Landlord & Tenant Act) | UAE (Dubai Tenancy Laws, RERA Guidelines) |
| Accounting Basis | Accruals required (from April 2026) | Cash basis still common but accruals encouraged |
| Deadlines | Budget 1 month before year; year-end accounts in 4 months | Year-end statements typically within 90 days |
| Evidence | Mandatory supporting invoices/logs | Supporting documentation required in disputes |
| Independent Review | ICAEW TECH 09/14 compliance | Third-party auditor or RERA-approved reviewer |
Making tenant statements “dispute-proof” means ensuring tenants have little to no grounds to contest charges.
Best practices include:
What are the best practices for documenting charges?
Landlords should retain supporting invoices for at least six years in line with UK Limitation Act requirements and maintain a digital audit trail.
How can landlords implement independent verification?
Engaging a qualified accountant to review statements against ICAEW TECH 09/14 (Revised) is increasingly seen as best practice. This protects both landlords and tenants.
What technologies and software solutions help prevent errors?
Why does issuing statements on time reduce disputes?
Industry research indicates that delayed issuance of statements is a major trigger for disputes, though RICS has not published an exact 82% statistic. Tenants view delays as red flags, assuming landlords are hiding errors.
Landlords who issue inaccurate or delayed statements face both direct costs and long-term risks.
How do disputes escalate into litigation?
If informal negotiations fail, UK tenants may escalate cases to the First-tier Tribunal (Property Chamber), while UAE tenants apply to the Rental Dispute Settlement Centre. Both processes are costly and time-consuming.
What penalties or damages can landlords face?
How can disputes damage long-term landlord-tenant relationships?
Savills (2023) research suggests tenants involved in disputes are significantly less likely to renew leases, contributing to higher vacancy rates.
Professional standards provide a shared framework that reduces ambiguity. Accruals prevent manipulation of costs by recording them when incurred. For example, a repair carried out in December 2025 must be recorded in that year even if paid in January 2026.
How does ICAEW TECH 09/14 safeguard landlords and tenants?
This technical release provides detailed review standards for service charge accounts, ensuring independent verification and tenant confidence.
How do fixed management fees vs. percentage-based fees impact trust?
Fee Model | Pros | Cons | Tenant Perception |
| Fixed Fee | Predictable, transparent | May not reflect workload | Positive (fairness) |
| Percentage Fee | Linked to total spend | Can incentivise overspending | Negative (conflict of interest) |
The RICS Professional Statement effective April 2026 prohibits the recovery of management fees calculated as a percentage of service costs.
Veritus Consultancy specialises in property finance, compliance, and service charge management.
How does Veritus assist landlords in achieving full compliance?
By aligning statements with RICS and ICAEW standards, ensuring landlords meet the April 2026 deadline.
What independent review services does Veritus provide?
Veritus offers independent accountant reviews of service charge accounts, reducing tenant challenges and tribunal risks.
How can outsourcing financial management reduce landlord risk exposure?
With Veritus managing tenant statements, landlords benefit from:
Explore their services here: Veritus Consultancy.
A proactive approach today saves disputes tomorrow.
Step-by-step checklist:
What red flags should landlords regularly audit for?
Tenant statement disputes often arise from preventable issues, poor documentation, unclear cost allocations, and late issuance. By following RICS and ICAEW guidelines, using digital tools, and engaging independent reviewers, landlords can significantly reduce risk.
To future-proof your statements and protect your landlord-tenant relationships, partner with experts. Veritus Consultancy helps landlords build trust, ensure compliance, and safeguard long-term rental income.
How often should landlords issue tenant statements to avoid disputes?
Best practice is quarterly updates with an annual reconciliation. UK landlords must meet statutory deadlines, while UAE practice requires year-end summaries.
Can tenants legally challenge service charge breakdowns in 2025?
Yes. In the UK, tenants may challenge charges at the Tribunal. In Dubai, tenants can escalate disputes to the Rental Dispute Settlement Centre.
What’s the difference between tenant statements and year-end service charge accounts?
Tenant statements provide ongoing cost and rent records, while service charge accounts reconcile actual expenditure against budgets annually.
Are electronic tenant statements legally valid in the UK and UAE?
Yes. Both jurisdictions now recognise electronic records, provided they are verifiable and securely stored.
How do landlords handle disputes if tenants refuse to pay charges?
Initial negotiation is recommended. If unresolved, landlords can pursue arbitration, tribunal, or court action, depending on jurisdiction.
