Case Study Flashcards
(48 cards)
Describe the Property and any unique features.
The property is a semi-detached cottage with an attached stone store. It has stone construction under a slate roof and a large garden to the back.
Detail the repairs you identified and associated costs.
New double-glazed windows, New carpets: £2,100, New bathroom, New kitchen, Redecorate: £2,750, Damp proof course and insulation: £16,000, EICR, New Heating system, EPC: £100.
What was the cost of the works, compared to uplift in rental and capital value?
Cost of works: £76,000, MV before: £80,000, MV after: £170,000, MR before: £425pcm, MR after: £675pcm.
How did you ensure your conclusions as to Market Value were robust?
Used a hierarchy of evidence Category A (direct comparables) accounting for location, date of sale and property
How did you ensure the renovation costs were good value for money?
Received two quotes for the works and compared with other projects undertaken in the past on the same Estate.
Talk through your pre-inspection safety due diligence.
Informed the office when I was there and how long I should take. Looked at property file to understand property and any hazards.
What are the current Scottish requirements for EPCs?
For private rented properties, there must be a valid EPC, with MEES standards coming in from 2028 or achieve EPC rating C.
Can you identify what specific work was required to bring the Property to a let-able Standard?
Address rising damp issue, new kitchen, and new bathroom.
What was the rationale behind your advice in key Issue 1?
Advised the client that the property should be relet to meet clients’ goals of adding investment income to assets, requiring renovation to address rising damp issues.
What are the ‘tolerable’ standards for damp?
Substantially free from rising or penetrating damp.
What was the cost of each option considered within key option 2?
A quote was not sought for option 2; Client chose option 1.
What did you calculate as a required budget for renovation works?
Outlined work that was required and gathered quotes that were then approved by the client.
What was your advice to the Client in terms of a reasonable budget for the works?
Around £80,000 would be the budget, but I was clear that other issues could arise and thus require more funds.
How did you assess the viability of the options for altered layouts?
Assessed potential rental income of layout options.
Talk through your calculations as to Market Rent with the Property as was, vs once all the works were complete.
Rent after renovation: £675. Similar property nearby let for £700pcm
What are the key steps for obtaining a building warrant?
Prepare architect plans and specifications, submit an application online through the eBuilding Standards portal, pay the associated fee, and wait for the LA’s assessment.
What was the value of the tax exemption?
£1,186.
Why were the outstanding works required for Building warrant not completed as part of the main renovation?
The oven extractor fan was correct from installation; this was a mistake on the planner’s part. The out-fall pipe ventilation was overlooked by the contractor and rectified at no extra cost.
Talk through the techniques you deployed to manage the budget for renovation.
Kept track of invoices comparing to quotes and progress to project, ensuring any unforeseen issues were discussed with the client.
Was the project completed in budget?
Yes, but I was clear with the client that this was anticipated work and other work may be required once the work began.
Talk through how you letting met all statutory requirements for lettings.
EICR, EPC, Tolerable Standard, background checks on new tenants, proof of ID and address, credit check, safe deposit Scotland, create a tenancy agreement with mandatory clauses, easy read notes for tenant, and record of condition.
Talk through your analysis of comparable evidence for Market Rent.
Research the local rental market, analyse comparable rental properties we manage, adjust for we rent reviewed, factor in market demand and location.
What was your rationale for advising the deposit level of £1,000?
Recently renovated at great expense, wanted it to be more than 1 month’s rent which is standard.
What was your advice as to marketing strategy?
Market nationally, limited rentals available in the region.
