Legislation governing lease arrangements includes the following under operating costs and overheads: council taxes, insurance costs, concierge costs, management fees, heating costs, hot water costs, repair and maintenance charges, etc. Overheads are charged on a regular basis at the end of each accounting period and tend to vary only slightly in their amounts, as opposed to major maintenance work.

There are rules governing which overheads can be passed on the tenant (provided they are included in the terms of the lease agreement, heating costs, concierge costs, insurance premiums for fixtures and fittings required for letting) and operating costs which by law may not be passed on to the tenant (e.g. management and administration fees, costs of repairs, insurance premiums for the property).