Brainscape's Knowledge GenomeTM


Top Flashcards (Certified)
All Flashcards

MRICS > Property Management > Flashcards

Property Management Flashcards

(103 cards)

Start Studying
1
Q

What is a BMS?

A

A Building Management System (BMS), sometimes called a Building Automation System (BAS), is a computer-based system installed to control and monitor a building’s electrical equipment such as ventilation, lighting, energy, fire systems, and security systems.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

As a property manager, what are your H&S / fire safety obligations?

A

To ensure a suitable risk assessment is carried out for the property - GRA & FRA

To ensure risks are minimised

To comply with legislation

To communicate with occupants/stakeholders

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

How do you ensure good management of mixed use developments?

A

Comprehensive site setup, including:

Lease analysis - documentation
Software configuration
relationship-building

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

Talk me through the requirements of S11 of the LTA 1985.

What obligation does this place on landlords?

A

Section 11 of the Landlord and Tenant Act 1985 implies an absolute and non-excludable obligation upon landlords to carry out basic repairs.

The structure and exterior of the dwelling and the building containing the dwelling
 (including drains, gutters and external pipes).
 The installations for the supply of water, gas and electricity and sanitary installations
 (including basins, baths and W.C.s).
 The installations for the supply of space heating (i.e. gas fires / central heating) and water heating.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

What is the Occupiers Liability Act 1957/1984?

A

The Occupiers Liability Act 1957 imposes a duty of care on occupiers towards lawful visitors to their premises, requiring them to take reasonable care to ensure visitors’ safety.

The Occupiers Liability Act 1984 extends this duty of care to cover trespassers and other persons not considered lawful visitors, requiring occupiers to take reasonable care to prevent foreseeable harm.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

Q: How do these impact upon your role? (Occupiers Liability Act)

A

As a property professional, you need to be aware of these Acts and their implications, ensuring that property owners or managers maintain safe premises and take appropriate measures to minimize risks to both lawful visitors and trespassers.

This includes advising clients on their legal obligations, identifying potential hazards, and recommending necessary actions or improvements to meet their duty of care.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

Under the Occupiers Liability Act 1954, what happens if an injury was caused to a visitor due to the faulty work of a third party?

A

The Occupiers Liability Act 1957, not 1954, applies in this case. If an injury was caused to a visitor due to the faulty work of a third party, the occupier may still be held liable if they failed to take reasonable care to ensure the visitor’s safety.

However, if the occupier can demonstrate that they took reasonable care in selecting the third party and ensuring the work was properly done, they may be able to avoid liability.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

How can you satisfy your duty of care to persons other than visitors under the Occupiers Liability Act 1984?

A

A: To satisfy your duty of care under the Occupiers Liability Act 1984, you should take reasonable steps to prevent foreseeable harm to persons other than visitors, such as trespassers.

This may include regularly inspecting the property for potential hazards, fixing dangerous conditions, or providing adequate warnings of any hazards that cannot be eliminated.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

Tell me about a key point of the Management of H&S at Work Regulations 1999 / Control of Substances Hazardous to Health Regulations 2002 / Water Supply Regulations 1999 / Electricity at Work Regulations 1989 / Electrical Safety Standards in the Private Rented Sector (England) Regulations 2020 / Defective Premises Act 1972 / Regulatory Reform (Fire Safety) Order 2005 / Gas Safety Regulations 1998 / CDM Regulations 2015.

A

A: Management of H&S at Work Regulations 1999: These regulations require employers to conduct risk assessments, implement appropriate control measures, and provide adequate training and information to employees to ensure their health and safety at work

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

What are the two tests for corporate insolvency?

A

cash-flow test
balance-sheet test.

The cash-flow test considers whether a company can pay its debts as they fall due, while the balance-sheet test assesses whether a company’s liabilities exceed its assets.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

What are 3 of the key principles of RICS Real Estate Management?

A
  • Manage property transparently and maintain confidentiality
  • Deal with tenants constructively, courteously, and honestly
  • Provide 24-hour contact arrangements
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

What is a PPM

A

Planned preventative maintenance

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

How can you protect the security of client’s money?

A

Comply with RICS Service Charge Code

Comply with ICAEW Technical release

Have separate accounts

Segregate funds using software

Excellent record keeping

conduct reconciliations

Produce quarterly/monthly reports

Be regulated by RICS

Bank with reputable banks

Ensure PII Insurance is in place and fidelity insurance

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

What requirements do RICS place on firms holding client’s money?

A
  1. Be aware and implement Client money handling
    RICS PROFESSIONAL STANDARD
    Effective from 1 January 2020
  2. Have designated client accounts
  3. Ensure proper segregation
  4. Ensure reconciliation are carried out - we do weekly
  5. Adhere to money protection scheme rules
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

What is the RICS Client money protection scheme

A

Provides collection as a last resort in instances where an RICS firm is unable to repay a client money

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

What is an RICS annual return?

A

A report submitted to RICS on client accounts to demonstrate compliance

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

What is an RICS regulatory review?

A

RICS assessment of a firm’s compliance with regulations

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

What happens if you have surplus money in a client account that is not claimed after 6 years?

A

If, after three years, the client or owner of the money has not been found and no true claimants to the money have come forward, it must be donated to a registered charity.

A receipt must be obtained for this transaction.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

What is a key issue relating to holding client’s money?

A

Ensuring funds are secure and managed properly and not mixed with office funds / other client funds

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

What is a reconciliation?

A

Comparing client account records with bank statements to ensure accuracy

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

What controls should be in place relating to holding client’s money?

A

Segregation of duties,

authorisation procedures

authority levels

regular account reviews

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

Tell me about the PRS Code of Practice (2015) and how it impacts upon your practice.

A

Sets standards for property professionals in the private rented sector, impacting practices in areas like service delivery, client communication, and legal compliance

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

What are the two types of ASTs?

A
  1. Periodic tenancies

which run from one rent period to another,

  1. Fixed-term tenancies

which last for a specified period.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
24
Q

What is an assured tenancy?

A

An assured tenancy is a more secure type of tenancy that provides tenants with long-term security of tenure, making it more difficult for the landlord to regain possession of the property.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
25
What would you expect to find in a tenancy agreement?
A tenancy agreement should include the names of the landlord and tenant, the rental property's address, the rent amount and frequency, the tenancy start and end dates, tenant and landlord responsibilities, and any specific terms or conditions agreed upon.
26
Should prospective tenants be given any guidance (e.g. Government) before signing a tenancy agreement?
Yes, prospective tenants should be given guidance, such as the Government's "How to Rent" guide, which provides important information about their rights and responsibilities as tenants.
27
What does the Housing Act 1988 say about tenancies?
The Housing Act 1988 introduced the 1. Assured Shorthold Tenancy (AST) 2. Assured Tenancy (AT) setting out the legal framework for private residential tenancies in England and Wales, including rules for rent, security of tenure, and possession rights.
28
Should an AST be used for a company let?
I would double check this with a letting agent. I believe No, an AST should not be used for a company let, as the tenant is a company rather than an individual. A separate company let agreement should be used instead.
29
What is a Rent Act 1977 tenancy?
A Rent Act 1977 tenancy is a regulated tenancy that predates the Housing Act 1988, offering strong security of tenure and rent control for tenants.
30
What other forms of tenancy exist?
Other forms of tenancy include common law tenancies, license agreements, and contractual tenancies.
31
What Tenancy Schemes can you use?
In England and Wales, there are three government-approved deposit protection schemes: 1.Deposit Protection Service, 2. MyDeposits, 3. Tenancy Deposit Scheme.
32
What legislation do you have to comply with which is specific to residential/HMO property?
Key legislation includes the Housing Act 2004, Landlord and Tenant Act 1985, HMO Management Regulations
33
What must be included on rent demands?
Rent demands should include the landlord's name and address, tenant's name and address, rental property address, rent amount and due date, and any applicable late fees or penalties.
34
What should contractors have when working on site?
Contractors should have proper identification, proof of qualifications, and any necessary permits or licenses.
35
What does the HHSRS say about ensuring safe and healthy living environments and demands for improvements by a LHA?
The Housing Health and Safety Rating System (HHSRS) is a risk tool that assesses potential hazards in residential properties. Local Housing Authorities (LHAs) can demand improvements to properties with category 1 or 2 hazards.
36
Talk me about risk assessment under HHSRS. .
Housing Health & Safety Rating System Risk assessment under HHSRS involves evaluating the likelihood and severity of potential hazards in a property, considering the vulnerable population and potential harm
37
What categories exist under HHSRS and what do they mean?
Category 1 hazards pose a significant risk to health and safety and require immediate action, while Category 2 hazards are less severe but may still warrant remedial action.
38
What fire safety and testing measures do you have to carry out?
Ensure regular risk assessment carried out Ensure compartmentation and fire checks in in with Fire Saftey England Regulations 2001 Ensure statutory testing carried out of fire alarms and emergency lights - and other equipment including AOVs Ensure high-level stats of portfolio are assessed on open items
39
What guidance do you need to consider for observing fire safety?
RICS - Health & Safety for Residential Property Managers - 2016 RICS Journals around PAS 9980 Cladding FAQs on RICS website - 18 April 2023 RICS - Valuation approaches for properties in multi storey residential buildings with cladding - December 2022 ARMA Guidance notes on fire safety encompassing the Building Safety Act 2022 and the Fire Safety Act 2021
40
What is PAS9980?
An updated standard taking a more holistic approach to assist building owners/managers in risk assessing the EWS systems and overall fire safety compliance of their developements
41
What are some of the key features of PAS 9980?
1. Guidance on undertaking a fire fire risk appraisal of external wall constriction and cladding systems 2. PAS applies where risk is known or suspected to arise from the construction used for the external wall 3. Purpose is to assess the risk to occupants from fire spreading over within the external walls 4. Also to assess what remediation measures may be necessary to reduce risk
42
What are the legislative requirements around smoke detectors/carbon monoxide detectors?
Smoke alarms/detectors are required on each floor of residential properties. Carbon monoxide detectors must be installed in rooms with a solid fuel-burning appliance. Devices must be regularly checked and maintained.
43
What are the electrical safety requirements?
A: Landlords must ensure electrical installations are safe. Regular inspections and necessary maintenance are required.
44
How often must electrical testing be carried out and by whom?
Electrical installations should be inspected and tested at least every 5 years. Qualified and competent electricians should carry out the tests.
45
How do building regulations relate to electrical installations?
Building regulations Part P sets requirements for electrical safety in homes. Compliance with these regulations is mandatory.
46
What is PAT testing?
Portable Appliance Testing (PAT) involves checking electrical appliances for safety. Though not legally required, it is recommended for landlords to ensure the safety of electrical appliances
47
How should landlords comply with gas safety regulations?
Landlords must arrange annual gas safety checks by a Gas Safe registered engineer. A copy of the gas safety record should be provided to tenants.
48
How can you terminate a residential tenancy?
Notice periods, such as a Section 21 or Section 8 notice, should be followed. All legal requirements must be met before terminating a tenancy.
49
What should you do once the property is vacated?
Inspect the property and assess any damage. Compare the property's condition to the initial inventory. Address any necessary repairs or cleaning.
50
How and when would you return the tenant’s deposit?
Deposit should be returned within 10 days of agreeing on deductions
51
What are the specific H&S risks relating to HMOs?
Fire safety risks are higher due to increased occupancy. Proper waste management and maintenance of shared facilities are essential.
52
What are your water safety responsibilities for an HMO?
Landlords must assess and control the risk of exposure to Legionella bacteria. Regular inspections and maintenance of water systems should be carried out.
53
Q: How do you comply with the Service Charge Residential Management Code (3rd Edition) in your role? (1 June 2016)
1 June 2016 Although it is not statement of law - it is endorsed by the secretary of state and is therefore a vital document. It also references key laws Can be used to assess performance at tribunal. Always keep a 'well thumbed' annotated copy on desk Great for quick reference checks Use it as: 1. Reminder of best practice 2. A check on controversial items - such as reserve funds, service charge account best practice 3. A source to demonstrate sound reasoned advice to clients
54
Q: What are the duties of a managing agent under the Code?
Duties include ensuring transparency, effective communication, financial management, legal compliance, and delivering quality customer service.
55
What legislation governs residential Service Charges?
1. The Landlord & Tenant Acts - 1985 - S11 - Repairing obligations - S19 - Service charges must be reasonable - S20 - Consultation - S20b - 18 month rule - S21 - Rights to summaries of costs / SC Accounts must be produced - S21b - Rights & Obligations to be sent with service charge demands - S22 - Right to inspect supporting docs 2. Landlord & Tenant Act 1987 - S42 - service charges held in trust - S47 - Landlords Identity & Address - S48 - Address for serving notice on the landlord 3. Leasehold Reform, Housing and Urban Development Act 1993 S76 - Right to a management audit 4. Housing Act 1996 - Restriction on forfeiture for small sums Supply of Goods & Services Act 1982 - Implies that services shall be provided to reasonable standard 5. Commonhold & Leasehold Reform Act 2002 - Increased consultation thresholds - Introduced RTM - Introduced Commonhold - S167 - Restrictions on forfeiture 6. Building Safety Act Places restrictions on the recoverability of service charges relating to building safety defects
56
What does S22 of the LTA 1985 say?
Leaseholders have right to inspect supporting documents
57
Tell me about the key elements of UK Residential Real Estate Agency (Blue Book).
The Blue Book covers professional conduct, ethics, customer service, communication, transparency, and compliance with legal requirements.
58
What is a vulnerable customer?
A vulnerable customer is someone who may have difficulty engaging in transactions or understanding their rights due to factors such as age, disability, or financial hardship.
59
What is discrimination?
Discrimination is the unfair treatment of an individual or group based on specific characteristics laid out in the Equalities Act 2010
60
How do you ensure that your staff manage residential property properly and responsibly?
Provide comprehensive training - internal/external Fund professional qualifications Require professional qualifications Empower with resources, including software
61
What does the Housing Act 2004 say about HMOs?
The Housing Act 2004 introduces mandatory HMO licensing, sets minimum standards for HMOs, and defines HMOs based on specific tests.
62
What is the difference between mandatory and additional HMO licensing and where do these apply?
Mandatory licensing applies to larger HMOs with at least five occupants forming more than one household. Additional licensing covers smaller HMOs where the local authority deems it necessary to improve living conditions.
63
What is the building test for HMOs?
The building test checks if the property is a whole building or part of a building being used as living accommodation by multiple households.
64
What does the Consumer Credit Act 1974 say about tenant credit checks?
The Consumer Credit Act 1974 requires landlords or agents to obtain tenants' consent before performing credit checks and only use registered credit reference agencies for such checks.
65
How can you evict a tenant?
Always get legal advice Evicting a tenant requires following legal procedures, which include serving appropriate notices (e.g., Section 21 or Section 8) and obtaining a court order for possession if the tenant does not vacate voluntarily.
66
What can you be guilty of if you don’t follow the correct eviction procedures?
If you don't follow the correct eviction procedures, you may be guilty of illegal eviction or harassment, which can lead to civil and criminal penalties.
67
What is a warrant for possession?
A warrant for possession is a court order that authorizes bailiffs to evict a tenant if they have not vacated the property by the date specified in the possession order.
68
What is an excluded tenancy and how can you evict a tenant in this instance?
An excluded tenancy typically refers to lodgers living with a resident landlord. In this case, the landlord can evict the tenant by providing reasonable notice and does not require a court order.
69
What is a regulated tenancy?
A regulated tenancy is a type of tenancy created before 15 January 1989, providing tenants with strong rights, including security of tenure and rent control.
70
What should you do if a tenant has left their belongings in your property?
Attempt to contact the tenant to arrange collection. If unsuccessful, follow legal procedures for disposing of abandoned belongings, including providing notice and storing items for a reasonable period.
71
What should you do if your tenant owes rent and receives housing benefit?
Contact the local authority to discuss payment arrangements and consider applying for direct payment of housing benefit to cover rent arrears.
72
What changes to management has the Housing and Planning Act 2016 brought in?
The Act introduced measures to tackle rogue landlords and agents, such as civil penalties
73
What taxes might be payable on buy-to-let rental profits?
Taxes on buy-to-let rental profits include Income Tax on rental income and Capital Gains Tax on the profit made when selling the property. Additionally, landlords might need to pay Stamp Duty Land Tax when purchasing a buy-to-let property.
74
Tell me about your understanding of the Leasehold Reform Act 1967 and Leasehold Reform, Housing and Urban Development Act 1993. What do each of these cover?
The Leasehold Reform Act 1967 allows leasehold tenants of houses to purchase the freehold or extend their leases. The Leasehold Reform, Housing and Urban Development Act 1993 grants leasehold tenants of flats the right to collectively purchase the freehold
75
What RICS guidance exists in relation to purchasing of freehold & collective enfranchisement?
Would speak to a registered valuer I am aware of Leasehold Reform in England & Wales - 2015 Sets out legislation Demonstrates flow-charts
76
Explain your understanding of Section 20ZA
Section 20ZA was introduced by the Commonhold and Leasehold Reform Act 2002. It allows landlords to apply to the First-tier Tribunal (Property Chamber) for a dispensation from consultation requirements in relation to qualifying works or long-term agreements if it is reasonable to do so.
77
What is the role of Section 20ZA in dispensation? When can this be used? How can emergency works be dealt with by the FTT? What is the role of the FTT in dispensation?
The role of Section 20ZA is to provide landlords with a means to dispense with consultation requirements in specific situations. It can be used when consultation is not practicable or would cause unnecessary delay, such as in emergency works. The FTT decides if the dispensation is reasonable and can impose conditions on the granted dispensation. Great caution must be excersized.
78
What is an Administration Charge?
An Administration Charge is a fee charged by the landlord or managing agent for providing services or approvals related to the lease, such as granting permissions, providing information, or processing notices.
79
Can you allow a client bank account to go overdrawn? No, a client bank account should not be allowed to go overdrawn.
Why can you not allow a client account to go overdrawn? Allowing a client account to go overdrawn breaches the rules and regulations regarding the proper management of client funds, which must be kept separate from the agent's or landlord's own funds.
80
What is a Section 47 Notice (Landlord and Tenant Act 1987)?
Requires to Landlords to disclose identity Notice requires landlords to provide their name and address to tenants in writing. Any demand for rent or service charges must include this information; otherwise, the amount demanded is not legally due until the notice is provided.
81
What is a Section 48 Notice (Landlord and Tenant Act 1987)?
Requires Landlords to disclose address for notices. A Section 48 Notice requires landlords to provide tenants with an address within England and Wales for the service of notices. This address must be provided before any rent is payable.
82
When may a leaseholder be entitled to a summary of relevant costs?
A leaseholder may request a summary of relevant costs for the most recent accounting period, or the past 12 months if no such period exists, within six months of the end of that period. The landlord must provide the summary within one month of the request or within six months of the end of the accounting period, whichever is later.
83
Are leaseholders entitled to inspect service charge accounts and receipts?
Yes, leaseholders have the right to inspect service charge accounts, receipts, and other supporting documents related to the summary of relevant costs. LTA 1985 - S22 - Right to inspect supporting docS
84
When should landlords consult with leaseholders in relation to service charge expenditure?
Landlords MUST consult with leaseholders when intending to carry out qualifying works or enter into a qualifying long-term agreement that will result in a service charge exceeding £250 per leaseholder as per Section 20 of the Landlord and Tenant Act 1985. SHOULD consult in general as much as possible - best practice
85
What limitations are there in relation to property managers dealing with insurance?
Property managers must comply with insurance regulations, avoid conflicts of interest, and act in the best interests of the leaseholders and landlords. They should not provide insurance advice unless authorized to do so by the Financial Conduct Authority.
86
What leasehold reforms are on the horizon?
Increase push for Commonhold Making RTM easier Campaign to abolish leasehold - will be difficult
87
What rights do leaseholders have in relation to insurance taken out by the landlord?
Leaseholders have the right to request information about the insurance policy, challenge the reasonableness of the insurance premium
88
What are the insurance implications of vacant properties?
Vacant properties are at higher risk for vandalism, theft, and damage. Insurers may require specific vacant property coverage or impose additional conditions during the vacancy period.
89
What is an Average in relation to insurance?
Average refers to a clause in insurance policies that reduces the claim payout if the insured property is underinsured. The payout is proportional to the ratio of the insured amount to the actual value of the property.
90
Do leaseholders have a right to carry out a management audit?
Yes S.76 - Leasehold Reform & Urban Development Act 1993
91
Tell me about electrical safety requirements in the PRS.
Electrical safety requirements in the PRS include regular electrical installation condition report (EICR) checks, ensuring the electrical system is safe, and providing tenants with appliances that meet safety standards.
92
Tell me how you prepare an inventory.
Consult a Letting agent. An inventory is prepared by documenting the condition and contents of a property, usually with photographs and detailed descriptions, before a tenant moves in. This is to help assess any damages or changes when the tenant vacates.
93
Tell me about the Private Rented Sector Code of Practice. .
The Private Rented Sector (PRS) Code of Practice sets out professional standards and guidelines for landlords, agents, and property managers operating in the private rental sector Endorsed by RICS, ARMA, ARLA, BP
94
Tell me about the Homes (Fitness for Human Habitation) Act 2018.
The Homes (Fitness for Human Habitation) Act 2018 ensures that rented properties meet certain minimum health and safety standards. It enables tenants to take legal action against landlords who fail to maintain the property's fitness for human habitation.
95
Tell me what you know about Nemcova v Fairfield Rents Ltd.
Nemcova v Fairfield Rents Ltd (2016) was a case in which the Upper Tribunal ruled that a leaseholder breached her lease by renting her flat on a short-term basis through Airbnb. The lease contained a covenant stating the flat could only be used as a private residence, and the ruling clarified that short-term lets were inconsistent with the covenant.
96
Tell me what you know about deposit protection.
Deposit protection is a legal requirement in the UK for landlords or agents who take a deposit from tenants under an assured shorthold tenancy (AST). Deposits must be protected in a government-approved deposit protection scheme within 30 days of receipt
97
What is a statutory periodic tenancy?
A statutory periodic tenancy arises automatically when a fixed-term assured shorthold tenancy expires, and the tenant continues to live in the property without signing a new agreement. The terms and conditions of the original tenancy agreement still apply, and the tenancy runs on a periodic basis (e.g., month-to-month) until terminated by either party.
98
Explain the precedent set in the Duval v Randolph Crescent Ltd (2020) in relation to consent for alterations.
In Duval v Randolph Crescent Ltd (2020), the UK Supreme Court ruled that a landlord who grants consent for alterations to a leaseholder, where the lease contains an absolute prohibition on alterations, can be in breach of its obligations to other leaseholders. The precedent clarifies the need for landlords to carefully consider lease terms before granting consent for alterations. Other leaseholders can take action against landlord
99
Explain recent changes to the provision of carbon monoxide and smoke alarms in social rented housing.
Private sector landlords and social landlords will be required to have smoke and carbon monoxide alarms in their rental properties for new tenancies which start from 1 October 2022.
100
Explain the requirements of TECH 03/11
TECH 03/11 or the ICAEW Technical release on service charges - it provies best practice on service charge accounting To summarise: The following summary outlines the best practice for residential leasehold properties with variable service charges: - Service charge accounts must comply with lease/tenancy agreements to recover expenditure. - RICS and ARMA members must adhere to the RICS Service Charge Residential Management Code. - Follow lease requirements for accounting, certification, recoverable costs, and accounting periods. - Service charge funds are trust monies and should be held in ring-fenced designated bank accounts. - Lessees should receive annual service charge statements within six months of the accounting year-end. - Statements should include income and expenditure accounts, a balance sheet, and be prepared on an accruals basis. - All statements should be examined by an independent accountant. - Service charge statements for RMCs or RTMCos should be separate from annual accounts filed at Companies House.
101
What precedent was confirmed in the case of Rakusen v Jepson?
The decision of the Supreme Court was that an RRO cannot be made against a superior landlord and can only be made against the immediate landlord of the tenancy that generates the relevant rent, in this case KPIG and not Mr Rakusen.
102
Tell me about a contract you have set up with an external service provider.
External Decorations Worked alongside Chartered Building Surveyor Tendered Tender analysis discussed with board Consultation notices already issued Decision made Proposal to enter into JCT Contract authorised Pre start meeting arranged
103
Tell me about a reactive/proactive management plan you have set up
Reactive: Budget set up with specific provisions for: - Electrical Repairs - General Repairs - Drainage repairs All logged on reactive issue tracker Complied with: S19 LTA - Reasonableness S11 LTA - Repairing responsibility Proactive: Capital works survey carried out Agreed with client Factored into budget Communicated with leaseholders Commenced phase 1 NOI Items logged on major works tracker S19 LTA - Reasonableness S11 LTA - Repairing responsibility Section 20 - Consulting

MRICS (14 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2025 Bold Learning Solutions. Terms and Conditions