The short answer to the question, ‘When do you need service charge caps?’ is ’On older buildings’. The service charge covers the running costs of the building, which include: cleaning, lift upkeep, air-conditioning, building security, and general building maintenance. If the building is older it is most likely going to cost more to keep running. For example, it is distinctly possible that the lift will break down or the common parts will need to be painted; all costs which are passed down to the occupiers through the service charge.