“(i)

a specified amount, index, percentage or period of time
(or any combination of them).”

“(6)

A charge is not reasonably incurred, and a service is not of a reasonable
standard, if it does not reflect the out-of-pocket cost incurred by the
landlord (or an associate of the landlord).

(7)

It is for the landlord seeking to retain service charges, or to use service
charges to pay an associate, to—

(a)

provide evidence of the landlord’s out-of-pocket costs (or those
of any associate ); and

(b)

show that the charges are reasonable by reference to that
evidence.

(8)

For the purposes of this section—

“
associate” has the same meaning as in section 1260 of the
Companies Act 2006;

“
out-of-pocket” means the direct cost to the landlord of providing
the thing or service in question.”

“(2)

For the purposes of this paragraph, an administration charge is only
reasonable if it reflects the out-of-pocket cost to the landlord (or person
providing the service for or on behalf of the landlord), taking into
account—

(a)

the use of any standard form document or precedent;

(b)

the time taken to complete the task;

(c)

whether all or any part of the task involves collating or
providing information or documents for which any tenant
under the same landlord has been charged via a service charge;
and

(d)

the nature of the task in question.

(3)

It is for the landlord seeking to enforce any administration charge to—

(a)

provide evidence of its out-of-pocket costs; and

(b)

show that the administration charge is reasonable by reference
to that evidence.

(4)

For the purposes of this paragraph—

“
out-of-pocket” means the direct cost to the landlord of providing
the thing or service in question;

“
service charge” has the same meaning as in section 18 of the
Landlord and Tenant Act 1985.”