Property Management (Level 2 and Level 3) Flashcards

Question

What are the different types of insolvency?

Answer 1

Administration Administrator appointed by creditors to RESCUE an insolvent company Receivership When the company owes money to a lender. Receiver is appointed by creditors (under Law of Property Act 1925) to release assets and repay debt Company Voluntary Arrangement (CVA) Voluntary arrangement with creditors as to how the debts will be settled. Voluntary liquidation/winding up a company.

Answer 2

Notify insurers Notify my client Draw down water Remove combustible materials Explore options for marketing Look at Rates responsibility EPC Seal up letter box Arrange security Undertake Health and Safety and Fire Risk Assessment for the building Planned maintenance programme Asbestos register Squatting External landscaping

Answer 3

If there is a forfeiture clause For non payment of rent (section 146 notice for any other breach) This is an aggressive tactic 6 months

Answer 4

Minimum 7 days unpaid rent Minimum 7 day clear warning notice served by enforcement agent (£75_ Enforcement agents visit 2 day clear warning notice Re entry by enforcement agent to seize goods Allow 7 clear days for the sale of goods Fees must be specified on the warning note

Answer 5

Court proceedings Use rent deposit Pursue former tenants/guarantors Serve a statutory demand (21 days) Commercial Rent Arrears Recovery Scheme Forfeit the lease Negotiate a payment plan Agree another mutually acceptable arrangement

Answer 6

Introduction Rules of Conduct Working with Clients Managing business and staff This is a condensed version of Real Estate Management 2016 and Commercial Property Management in England and Wales 2011

Answer 7

Guide to best practice for property managers Have a process in place to pursue occupiers for defaults in payments Have arrangements in place to forward sums collected, less deductions on to the landlord DUTY OF CARE TO THE LANDLORD

Answer 8

Guide to best practice for property managers Have a process in place to pursue occupiers for defaults in payments Have arrangements in place to forward sums collected, less deductions on to the landlord DUTY OF CARE TO THE LANDLORD

Answer 9

Act in an honest, fair, transparent and professional manner Carry out work with due care, skill and diligence Ensure TOE are fair with details of CHP Avoid COI Not to discriminate Hold appropriate PII Client money to be held separately All communication is fair decent and clear

Answer 10

Act in an honest, fair, transparent and professional manner Carry out work with due care, skill and diligence Ensure TOE are fair with details of CHP Avoid COI Not to discriminate Hold appropriate PII Client money to be held separately All communication is fair decent and clear

Answer 11

I set up a cleaning contract for a multi-let office building I reviewed the scope of works and the termination clauses I acquired competitive tenders and recommended the best value provider I signed the contract with clear service level agreements

Answer 12

I noted that a lift kept on breaking at one of the buildings that I manage I discussed this at length with the FM and recommended scheduling monthly PPM checks. I also recommended retendering the lift contract

Answer 13

Yes RICS Professional Statement: Service Charges in Commercial Property (2019)

Answer 14

I note down the hours per month that I spend on each of my clients portfolios We have a fixed management fee with each client in each Property Management Agreement and this can be renegotiated if more time is spent on a portfolio than anticipated.

Answer 15

Retender contracts regularly Negotiate contracts Benchmark against the market to maintain competitive pricing

Answer 16

It is a legal agreement that allows a telecommunications company the right to install and operate their apparatus at a property. Between telecoms company and landlord

Answer 17

Inspection Reviewing the lease terms Provide recommendations to my client in the form of a recommendation proforma To approach the solicitor and building surveyor

Answer 18

Removal of wayleave at the end of the term. It had little effect on my client's asset as the connection was to be removed at the expiry of the lease.

Answer 19

Make sure quarterly reports are clear and understandable That they include key issues and issues that are important to the client Tailored to each client Use of graphs and figures to highlight rent and service charge collection

Answer 20

I have dealt with disputes by carefully listening to both parties, identifying the core issues, and seeking to resolve them through clear communication and negotiation. If negotiations break down, I advise clients on alternative dispute resolution options such as mediation, arbitration, or expert determination.

Answer 21

Reviewing lease terms Monitoring key dates for rent reviews and lease renewals I also ensure that there is appropriate legal documentation in place for alterations (licences etc)

Answer 22

I checked the lease and reviewed the scope of works The Building Surveyor reported that the works would penetrate into the buildings fabric. The charger was mounted to the wall of the building

Answer 23

As they only benefitted the tenant. Yes, they could also be an improvement but also there was also a provision in the LTA for these to be removed at lease expiry

Answer 24

You should ensure that you have an efficient system to monitor rents collected and those that go into arrears, with standard letters chasing payments not received. You should monitor closely whether rents are received when due and, if not, communicate promptly with the tenant. Keep your client informed in writing of any significant arrears situation as soon as practicable; advise legal protection insurers of the situation, if cover has been arranged.

Answer 25

Charging interest on late payment Options available: friendly reminder rent deposit charge interest CRAR pursue guarantor Serve statutory demand negotiate payment plan forfeit the lease

Answer 26

Reducing cash flow potentially lowering the property's value increasing the risk of further financial instability or vacancy. may also lead to additional administrative and legal costs in recovering the arrears.

Answer 27

Breaches of a tenant’s lease obligations relating to the condition of the property, typically involving disrepair, lack of maintenance, or failure to reinstate alterations.

Answer 28

The Landlords right to regain possession of the premises and to bring the lease to an end

Answer 29

Cyclical Preventative Responsive

Answer 30

Served by a Section 146 Notice under the Law of Property Act 1925 Notice served in writing during the lease Tenant must repair as per lease obligations

Answer 31

Details of the repairing breach Timescale for remedy Course of action if Tenant fails to remedy

Answer 32

Serve a repair notice Forfeit the lease Serve interim schedule of dilapidations Do the work themselves and charge the tenant - Jarvis vs Harris

Answer 33

Landlord would peacefully re enter the property Initiate court proceedings to recover possession Terminate the lease immediately

Answer 34

When any rent is unpaid for 21 days after becoming payable Act of insolvency Any material breach of the lease

Answer 35

CPSE's are a set of standard questions used to gather essential information when leasing or managing commercial properties. They're typically completed by the seller or landlord when selling or leasing a property and are part of the due diligence process. CPSE 1 - General Information about the Property: Boundaries, rights, and any restrictions that might affect the use or transfer of the property. It's a general overview of the property’s condition and legal standing. CPSE 3 - Tenancy Details: Provides information on the current tenancy situation, such as rent details, tenant obligations, lease terms, and whether there are any ongoing disputes or claims regarding the tenants or property. This helps in assessing the financial viability of the property.

Answer 36

Collection of rent, service charge and other sums owed by the tenant to the Landlord The management of the property Health and Safety Procurement of suppliers

Answer 37

Old version was a guidance note - this is mandatory The inclusion of 9 mandatory obligations for RICS Members and firms including: Transparency of costs Service charges issued annually Procuring quality service standards to ensure value for money

Answer 38

1. Service Costs 2. Allocation and apportionment 3. Communication and consultation 4. Duty of care 5. Financial Competence 6. Occupier responsibilities 7. Right to challenge 8. Alternative dispute resolution 9. Timelines 10. Transparency 11. Value for money

Answer 39

Scheduled maintenance routine prepared by building surveyor to forecast future repairs needed Cyclical, preventative, responsive

Answer 40

A fund formed to meet anticipated future costs of maintenance and upkeep. Useful for major works and unexpected expenditure

Answer 41

Tender works to at least 3 different contractors Contractors must be safe and accredited Contractors should be from an approved suppliers list

Answer 42

Notify Landlord Check the lease to see if there is a guarantor or rent deposit Make an early contact with the administrator/ receiver and register claim for arrears Inform insurers Ensure property is secure Prepare schedule of dilapidations Forfeit lease or seek court order to terminate Consent to assignment if option * Would not accept keys as this would constitute as surrender

Answer 43

Complete interim service charge reconciliation Send a copy of the budget over Arrange a meeting with the new owner/managing agent There is an RICS information paper on Commercial Property Handover Procedure 2015

Answer 44

A written agreement promising to repair/replace an item within a set time period

Answer 45

Transfer of undertakings (protection of employment) Applies to people who provide a service at a property protects employees and allows them to transfer over to new employer

Answer 46

Property owner liability insurance Loss of rent insurance Loss of service charge insurance Other insurance that is recharged to tenant includes - engineering insurance, building insurance, public liability insurance

Answer 47

Currently in the consultation phase - updates on ESG and sustainability

Answer 48

Charge interest when the debt crystalises. 4.5%

Answer 49

RICS Professional Standard Real Estate Management 2016 RICS Guidance Note Commercial Property Management in England and Wales 2011 RICS Professional Standard Property Agency and Management Principles 2025 RICS Professional Standard Service Charges in Commercial Property 2018

Answer 50

Send a letter before action (LBA) Forfeit the lease Issue court proceedings

Answer 51

Planned preventative maintenance Cyclical, preventative and responsive Can avoid spikes in service charge expenditure over a number of years

Answer 52

Administration - Administrator is is appointed by creditors to rescue an insolvent company - administrator devises a strategy of rescue route Receivership - Receiver is appointed when a company defaults on payment - their job is to release assets to repay debts Company Voluntary arrangement - voluntary agreement with creditors as to how the debts will be settled, winding up of a company, bankruptcy

Answer 53

The difference between what a tenant has paid on account for service charges and the actual costs incurred by the landlord at year-end.

Answer 54

An event or peril, like fire or flood, that is covered under a building’s insurance policy.

Answer 55

Parties involved – who is providing and receiving the service Scope of services – what property management tasks will be done (e.g. rent collection, repairs, service charges) Fees and payment terms – how much and when the manager will be paid Professional Indemnity Insurance and Complaints Handling Procedure Duration and termination – how long the agreement lasts and how to end it Client responsibilities – what the client must provide or do Regulatory compliance – RICS standards, data protection, anti-money laundering, etc. Dispute resolution – how any disagreements will be handled

Answer 56

Landlord & Tenant Legislation Landlord and Tenant Act 1954 – Lease renewals & terminations (commercial). Landlord and Tenant Act 1985 – Service charges & maintenance standards. Commonhold and Leasehold Reform Act 2002 – Right to manage & consultation. Housing Act 1988 – ASTs & tenant rights. Housing Act 2004 – Licensing of HMOs, housing health & safety rating system. Leasehold Reform, Housing and Urban Development Act 1993 – Lease extensions. Health & Safety Legislation Health and Safety at Work etc. Act 1974 – General duty of care. Regulatory Reform (Fire Safety) Order 2005 – Fire risk assessments & safety. Control of Asbestos Regulations 2012 – Duty to manage asbestos. The Building Safety Act 2022 – Higher-risk building responsibilities. Environmental & Building Regulations Environmental Protection Act 1990 – Waste, nuisance, and pollution. Energy Performance of Buildings Regs 2012 – EPCs & MEES compliance. Building Regulations (especially Part L) – Energy efficiency & construction standards. Financial & Conduct Regulations Money Laundering Regulations 2017 – ID checks & suspicious activity reports. Bribery Act 2010 – Prohibition of corrupt practices. Companies Act 2006 – Governance if managing company structures. Service Charges (RICS Professional Statement) – Fair and transparent management. Data Protection & Privacy UK GDPR / Data Protection Act 2018 – Data storage, access & privacy obligations.