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Property Management Flashcards

(61 cards)

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1
Q

What are three examples of costs that should not be incorporated into a service charge

A

1) initial design & construction

2) Asset Management Costs (such as finding new tenants)

3) Improvement above normal maintenance that can’t be justified by cost-benefit analysis

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2
Q

What is the service charge benchmarking tool?

A

Bellrock - SCOR

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3
Q

What is the price per square foot for a shopping centre and office service charge in London

A

£5 psf & £15 psf

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4
Q

What would impact the cost of a service charge per square foot?

A

Some schemes may put on community events which drive footfall, which may be included in the SC and increase costs

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5
Q

What are the issues are that out with a unit not being open in a shopping centre aside from vibrancy

A

Who is looking after/repairing the unit if the tenant is not there

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6
Q

What are three ways service charge caps can increase by

A

1) Fixed % 2) RPI 3) CPI

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7
Q

What needs to be served for non-rent related forfeiture

A

Section 146 notice of the Law and Property Act (1925)

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8
Q

What does Jervis v Harris (1996) state?

A

landlords have the ability to enter units and make repairs and recharge cost to tenants if they fail to do so

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9
Q

What is an effective FRI lease?

A

Where the tenant is responsible for external repairs, but these are organised by the landlord

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10
Q

What percentage above the base rate is interest typically added to arrears

A

2 to 4%

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11
Q

What are the four quarterly rent payments days?

A

25th of March

24th of June

29th of September

25th of December

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12
Q

What does PPM stand for?

A

Plant preventative maintenance

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13
Q

What did the re-entry clause allow?

A

Re-entry 14 days after rent unpaid

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14
Q

How does a stat demand work?

A

Arrears over £750

Tenant then has 21 days to pay once served

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15
Q

What does the current cap need to be multiplied by to reach the new cap?

A

RPI prior to the start of current SC year / RPI prior to start of previous SC year

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16
Q

What will a landlord insure the building up to?

A

The reinstatement of the building

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17
Q

What does Street v Mountford (1985) state?

A

The difference between a lease and a license

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18
Q

How is a lease different from a license?

A

Lease provides occupier with interest in the land

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19
Q

What is required before obtaining a license to alter?

A

An undertaking for surveyor and solicitor costs

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20
Q

What are the three types of dilapidations schedules?

A

Interim - during the course of lease

Terminal - towards end of lease

Final - at or after lease expiry

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21
Q

Where would you find information relating to the service charge within a lease?

A

In the service charge appendix

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22
Q

When would a license to alter be required?

A

For works involving structural alterations

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23
Q

How could you increase the EPC in a shopping centre unit?

A

Replace fluorescent lighting with LED lighting

Consider installing solar panels

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24
Q

What are examples of soft services?

A

Cleaning, landscaping, security

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25
How long does a tenants have to claim for future relief?
6 months
26
Why for opening hours example did you advise solicitor involvement?
I can provide high-level explanation However comments on legal options better achieved through solicitors whose area of expertise it is
27
What is the high-level structure of a commercial lease?
1) particulars (parties, property, term etc) 2) definitions 3) tenant covenants 4) landlord covenants 5) schedules
28
What if a tenant claims to not benefit from ppm works because of lease expiry
If lease states that they are liable for project works, they would need to contribute If challenged, we would provide recommendation to the client
29
What would you do if there was unexpected expenditure required
Most budgets have contingency sums for unforeseen events If this was exceeded the cost would be reimbursed through end of year reconciliation
30
What would you do if opening hours issue had not been resolved?
If landlord was happy to tolerate, you would recommend a lease variation in order to document the change
31
What is a section 17 notice?
Must be served to recover arrears from former tenant or
32
What is a sinking fund?
Fund for predetermined future expenses like major replacements
33
What is a reserve fund?
Fund for unexpected future expenses
34
35
What is a wasting asset?
An asset that decreases in value over time due to use or obsolescence
36
What should you do in terms of working at height if possible?
Eliminate the risk. This could be done by using a drone to do roof inspections
37
What were the two things you a jacket in your EPC validation exercise?
1) existing leases (compliance) 2) vacant units (to let)
38
Did any units come back below E rating in your EPC validation exercise?
No, they did not If they had - I knew the clients favoured EPC assessor also undertook EPC improvement services
39
When you undertook your EPC validation exercise, what was the legal the situation for EPCs?
Had recently become a legal requirement for existing as well as new leases to be EPC E
40
Did you provide the client with any future proofing advice with regards to EPCs?
I provided advice, but the client did not want to commit to action before the law was set
41
At the time of the EPC validation exercise, what was the plan for EPCs?
2027 - increase to EPC C 2030 - increase to EPC B Had not become law at this time, just proposals
42
What was the tenants old cap, new cap AND budget apportionment
Old cap = £50K New cap = £55K Apportionment = £50k
43
How much was the tenants quarterly rent which had not been paid?
£10K
44
How was the payment plan scheduled?
1x Upfront Payment 2x Monthly Payments
45
How was the payment plan documented?
Agreed via email Documented by letter drafted by the solicitor (stated that if payment plan failed it would revert to lease terms)
46
If the client had been willing to permit the shorter opening hours, what would you have done?
Organised for a lease variation
47
When did CRAR come into place and what did it replace?
2014; Distress - now seizure can only be done by certified enforcement agents
48
What are the three key duties of a property manager according to commercial property management in England and Wales?
1) primary duty to the landlord 2) rent collection 3) service charge administration
49
How often do PMs and FMs inspect properties?
Every 12 months More frequently
50
What are the four ways service charges can be apportioned?
1) floor area 2) weighted floor area 3) RV 4) fixed percentage
51
What does a status demand proceed?
A winding up agreement
52
How much interest is typically put on arrears?
2 to 4% above the base rate
53
Can enforcement agents force their way in?
No, it must be peaceful entry
54
What is the maximum fine for a breach of scaffolding license? How does a licence cost?
£5000 A couple of hundred?
55
Who do you inform as an FYI on the scaffolding example?
The client’s insurers
56
Is VAT levied on rents?
Yes, 20%
57
What is the best form of rent collection?
Direct debits as they cater for variable costs (unlike standing orders)
58
What are two requirements for forfeiture?
Forfeiture clause in the lease Rent properly demanded
59
What is the new professional standard for PM and what are the two sections?
Property Agency & Management Principles (2024) Working with Clients & Managing Businesses and Staff
60
What are the three different sections of the Landlord and Tenant Act (1954)?
S24 - Security of Tenure S25 - Landlord proposal for new terms or termination S26 - Tenant request for new tenancy
61
Why did you go straight to the letter for the opening hours example?
Couldn’t get in contact with the tenant

APC (20 decks)

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