Property Management - Summary of Experience Flashcards
1
Q
What is an assignment?
A
The tenant transfers the legal interest in the lease to another tenant - The incoming tenant takes over all lease obligations
2
Q
What is a sub-letting?
A
New party leases the property from the current tenant rather than landlord - Old tenant maintains relationship with the landlord
3
Q
What is the difference between an assignment and a sub-letting?
A
Assignment = old tenant no longer liable to landlord
Sublet = old tenant still has legal obligation to landlord but just has another relationship with sub-tenant
4
Q
Why would you sublet instead of assign?
A
- May want to reoccupy in future
- Not allowed to assign under lease
- New party lower covenant strength
5
Q
Why would you assign rather than sublet?
A
- No plans to occupy in the future
- Rent too high for you
- No longer need unit
6
Q
What asset classes have you managed?
A
- Retail
- Industrial
- Office
7
Q
Can you tell me about the RICS guidance note Commercial Property Management 2011?
A
Give guidance on:
- Acting as an agent of the landlord
- Managing third party suppliers
- Duty of care
- Tenant management
- Building management
- Financial management
8
Q
How do you manage/balance expectations from landlord and tenants?
A
- Clear communication
- Set realistic expectations
- Ensure timely maintenance/repair
- Act as a mediator to disputes
9
Q
Can you talk me through the CRAR process?
A
1) Assessing rent is overdue
2) Notice of enforcement - 7 days to pay
3) Enforcement agent instructed to take control of goods
4) Controlled goods agreement - retain possession of goods while paying off arrears (Tenant has 7 days to pay the arrears)
6) Sale of goods at auction if arrears remain unpaid for 7 more days
10
Q
When would the CRAR process not be an acceptable option?
A
For anything other than rental arrears and for rent that is shorter than 7 days outstanding
11
Q
What is a typical alienation clause?
A
Permit to assign/sub-let whole but not part, with landlord consent not to be unreasonably delayed
12
Q
What is a statutory demand?
A
a formal written notice or demand for payment of a debt served by a creditor
- This will state that if debt is not paid within 21 days, creditor can apply for bankruptcy
- More aggressive than CRAR
- More expensive than CRAR - £1.5k
13
Q
Can you tell me about a few different clauses within lease agreements?
A
- Option to determine
- Rent review
- Rent
- Service charge
14
Q
What is a management fee?
A
Fee charged by the property manager that is included within the service charge budget. Not calculated on % basis
15
Q
What is a service charge cap and how are they calculated?
A
A limit set on the amount that landlords can charge tenants for maintenance and services in a property
- Usually calculated based on RPI but also CPI
16
Q
What is a 7 day letter?
A
Stating that CRAR action will be commenced and goods seized if the tenant doesn’t pay within 7 days
17
Q
What should PM do when they receive an application to assign or sub-let?
A
1) Review lease
2) Request undertaking of surveyor and legal costs
3) Check if proposed market rent is same as passing
4) Check effect on investment value of prop
5) Check if incoming tenant will pay rent deposit
6) Provide recommendation to client (approval)
7) Documented by solicitors
18
Q
What is the aim of the Landlord and Tenant Act 1988?
A
S1 - States consent must be provided within a reasonable timeframe
19
Q
What is the aim of the Landlord and Tenant Act 1927?
A
S18 - Limits amount of damages landlord can recover for breach of tenants repairing covenant
S19 - Consent not to be unreasonably withheld
20
Q
What is the use of a licence for alterations?
A
Protects landlord - requires tenant to reinstate unit at end of lease back to original letting
Protects tenant - prevents landlord from rentalising alterations/improvements at rent review
21
Q
Tell me about RICS service charges in commercial property
A
RICS Professional Standard: Service Charges in Commercial Property, 1st Edition, September 2018
- Supersedes previous 3 editions published as codes of practice on April 2019
22
Q
Can you talk me through the process of completing an LTA application as the one undertaken at Wooburn Industrial Estate?
A
1) Received T application by email - checked lease provisions and requested undertaking of costs
2) Considered application and requested further input from BS due to technical aspects of warehouse racking system and chiller unit - Reconfirm on costs to T
3) Provide client recommendation
4) Document LTA
23
Q
How can consent be granted to make alterations?
A
- Automatically by lease terms (no consent necessary)
- Formal licence - Big changes
- Simple letter - less complex - no solicitor needed
24
Q
Why should inspection be carried out after completion of tenant works?
A
- To check surveyor is satisfied with the works completed
- To see if there are any snags that require rectification
25
What is a property managers responsibility when managing a vacant building?
- Insurance
- Repairs
- EPC
- Inspections - insurance purposes
- Inform council - rates
- Security
- Maintain landscaping / asbestos
26
What is the tax on insurance on premiums?
Insurance Premium Tax
27
What are the two fundamental principles of rent collection?
- Accuracy of information provided
- Timing of when demands are sent out / rent is collected by
28
What is the difference between a standing order and a direct debit?
Standing order = regular payment set up by payer and payer has control
Direct debit = payer authorises payee to take payments (set up by bank)
29
How can you pre-empt tenant being in rent arrears?
Consistent late payments and bounced cheques
30
What are typical lease terms regarding interest on late rent?
2-4% above base rate and 14 days after due date
31
What is the first step to assessing if rent arrears can be recovered?
Check the lease obligations - READ LEASE (see what procedures are in place)
32
What are the different remedies for rent default?
- Negotiate payment plan
- Draw down rent deposit
- Pursue guarantor
- CRAR
33
What is to be considered before drawing down on a rent deposit ?
Tenant covenant strength - can they top back up?
Future debt - If tenant struggling may be best to keep for future debt e.g. dilaps
34
Does the landlord need to give T notice before drawing down on rent deposit?
Depends on what the deed says
35
Does the landlord have to use rent deposit for arrears?
No - At their discretion
36
How can the court be used to recover tenant arrears?
landlord can obtain a court judgement
- High court enforcement officer may enforce this and will need to pay court fees
- similar to CRAR
- Slow process and expensive
37
When can a former tenant be pursued for arrears?
If lease started before 01/01/1996
- This is due to abolishing of privity of contract - before this any tenant original tenant under lease was responsible even if lease had been transferred
38
What is the process of serving a statutory demand?
1) Notice served - T has 21 days to pay/propose plan (£750 for commercial, £5000)
2) After this time landlord can present winding up petition to court
Aggressive, costly tactic - Not usually recommended
Can be for anything owed
£1.5k fee for solicitors
anyone can serve this
39
What are the timelines for CRAR?
1) Assess overdue rent - (7 days unpaid rent)
2) LL issues notice of enforcement - 7 days for the tenant to pay
3) Enforcement agent instructed to attend and take control of goods (Tenant may enter into controlled goods agreement ro retain possession whilst paying off arrears)
4) If arrears remain unpaid, goods can be sold at public auction after providing further notice
40
What goods can't be seized under CRAR?
- Perishable goods
- Kit belonging to 3rd party
- Tools of the trade up to a value of £1,350 - If sole trader
41
What are tenants rights under CRAR?
Can apply to court for order that no further steps can be taken without permissions from court
42
What is forfeiture?
Lease clause allowing landlord to regain possession of a lease by peaceful re-entry or court action
43
When can forfeiture be used?
if forfeiture clause in lease
44
What are tenants rights under forfeiture?
- Have right to apply for relief to the court
- If granted, lease is restored
45
How can landlords right to forfeit be waved?
- If there is a payment plan agreed
- If CRAR is exercised
- If S.25 notice served
46
How can a lease be terminated by forfeiture?
- Peacefully re-enter and change locks
- Court proceedings to recover possession
47
What is the landlord and tenants covenant act 1995?
Act that abolished privity of contract and introduced authorised guarantee agreements (outgoing tenant acts as a guarantor for party who assigns lease)
- Have to serve a S.17 notice to guarantor within 6 months of tenant not complying with their contractual obligations
48
According to RICS Code of Leasing Business Premises, when should AGAs be used?
If assignee has weak covenant strength, no guarantor and no rent deposit
49
What is key consideration when reviewing rent arrears recovery methods?
- Chance of reletting property
- Vacant possession value and void costs VS value being let now
50
Four main options for landlord when tenant not fulfilling their repairing obligations?
- Serve notice of repair - S146 of law and prop act 1925
- Forfeit lease
- Serve interim/terminal schedule of dilaps
- do works themselves and recharge T - Jervis v Harris
51
What must be included in notice to repair?
S146 of law and prop act 1925
- Details of repairing breach
- timescale allowed to remedy breach
- court of action proposed if T fails to remedy - Gives tenant 6 months to undertake repairs
52
How can a landlord forfeit a lease for failure to repair?
Must serve S146 notice on tenant (stating details, timescale and proposed course of action)
53
What is the leading case law for landlord right to re-enter property to undertake repairs?
Jervis v Harris
- Gives LL right to pursue remedy against defaulting tenant to ensure premises kept in good condition
54
In what circumstances can Jervis and Harris clause be used?
- Tenant is solvent
- Landlord wants to continue lease
- landlord wants to carry out repairs themselves
- threat of entry may mean tenant does works themselves
55
Please can you take me through how you instructed and got in place the PPM schedule at Ilford High Road?
New instruction noted no PPM in place
1) Made client aware - Requested that Workman BC attend site and draw up a quote
2) Client confirmed - I attended site with BC to assess these items
3) 10 year PPM drawn up (to be reviewed 5 yearly)- Confirmed items on a call with the client and that we would recover via the service charge
4) Received confirmation and budgeted for works in the upcoming year
56
What were the repair items that needed attending to at Ilford High Road under the PPM?
- Roof works (LL responsibility to repair) - Replacement
- Damaged brickwork and copings
- Road surface repair to the service yard
57
What are the aims of the RICS service charge professional standard?
- Improve best practice, fairness and transparency
- Ensure timely issue of SC budgets and YE certificates
- Reduce causes of disputes, and provide guidance on dispute resolution
58
What are the 9 mandatory requirements in Service Charges Professional standard?
- Recover expenditure in line with lease terms
- Recover no more than 100% of costs
- Annually provide budgets and explanatory notes
- Annually provide service charge accounts (showing actual figures)
- Annually provide service charge apportionment schedule
- Service charge money to be held in one or more discrete bank accounts
- Interest earned on SC account must be credited to the account
- When acting for tenant, advise that if disputing payment then withhold the amount in dispute
- When acting for a LL, following dispute resolution, any SC raised incorrectly is to be adjusted to reflect error without delay
59
What is the responsibility of the property manager when issuing service charges?
- Ensure value for money
- Ensure quality services that are regularly reviewed
- Ensure standard of services are monitored
60
What is a sinking fund?
A fund within the service charge set up for specific costs that occur occasionally e.g. roof repair, painting
61
What is a depreciation charge?
A fixed percentage of the original cost of a property that is charged off to expense in order to compensate for property depreciation
62
What are the 4 methods of service charge apportionment?
- Floor area
- Weighted floor area
- Floor percentage
- RV
63
What is a reserve fund?
A fund set aside to cover the cost of a major expenditure - useful for unexpected expenses
64
What are the different types of insolvency?
- Administration
- CVA
- Receivership
- Liquidation
65
What are the implications for the landlord when a tenant goes into administration?
- Landlord cant take any action against the company as it is protected
- If rent is being paid, the equivalent amount can be claimed from administrator
- Administrator may seek to assign the lease
66
What are the implications for the landlord when a tenant goes into liquidation?
- Landlord can deduct funds from RD
- Landlord can seek court order to terminate lease
- Landlord can forfeit lease
- Landlord can assign lease
67
What is the difference between a covenant being absolute/qualified/fully qualified?
Absolute = can't do anything
Qualified = can do something with LL consent
Fully qualified = can do something with LL, not to be unreasonably withheld or delayed
68
What is Occupiers Liability Act 1957?
Duty of care - occupiers must ensure visitor safety using premises
69
What is Occupiers Liability Act 1984?
Duty of care - Occupiers must ensure duty of care even to unlawful visitors e.g. trespassers
70
What is statutory duty placed on the landlord in the Landlord and Tenant Act 1927 and 1988?
Consent not to be unreasonably withheld or delayed
71
What is the Corporate Manslaughter and Corporate Homocide Act 2007?
Companies can be found guilty as a result of serious management failure or duty of care
- Unlimited fine
72
How do you hand over a SC account upon sale or change of manager?
Complete interim SC rec for the period
73
What is a cost undertaking?
Undertaking by one party to pay costs of another
74
What is a warranty?
Written guarantee promising to repair/replace item within set time period
75
What is TUPE?
Transfer of undertakings of employment
- Protects employees if business they are in changes hand
- Moves employees from old employer to new employer
- applies to those that work at prop e.g. cleaner
76
What are the health and safety / fire obligations as PM?
Ensure GRA and FRA carried out annually
77
What insurance is a landlord typically required to have under leases?
Insurance against property damages (Loss of rent and public liability insurance)
78
What is involved in third party procurement?
Contractor needs to be on approved supplier list
- Must tender works to at least 3 contractors
- Contractor must be safe contractor accredited
79
What is death by negligence?
Person liable for death of another through negligent behaviour/conduct (Corporate Manslaughter and Corporate Homicide Act 2007)
80
Why is rateable value not viewed as appropriate method of service charge apportionment?
Does not reflect a reasonable assessment of benefit of using common services
81
Why was a PPM instructed such as at Ilford High Road (What are the benefits)?
- Performed to preserve a property's condition
- Demonstrates proactive approach (especially here as just commenced management) - Avoid any hidden costs and demonstrates strong management skills
82
How would you manage a rent deposit?
Comply with obligations under rent deposit deed
- Hold funds in separate bank account designated to deposits
- Need to protect funds in case LL becomes insolvent
83
What do you do if the tenant can't pay rent?
1) Attend site to see if they are trading
2) Find out reason for inability to pay - Assess from their, could need payment plan/drawdown/CRAR/guarantor(AGA)/forfeiture
84
How is forfeiture for non-payment of rent different to forfeiture for non-compliance of repair?
Repair = service S146 of law and prop act 1925 and tenant has 6 months to remedy breach
Rent = 21 days pass, walk in and change locks
85
Why is it important to look at management accounts as well as audited accounts?
- Audited accounts may be a year or so out of date as these are submitted 9 months after year end
- Management accounts show a business is doing on a month/quarterly basis
86
What is a reasonable time to respond to application to assign?
Usually 1 week but dependent on agent
87
What is dilapidation figure based on?
The diminution in value as a result of wear and tear from the tenant's occupation
88
Tell me about your responsibilities for vacant buildings
- Vacant unit inspection
- Rates
- Ensuring building is suitable for viewing
89
What is the rule privity of contract?
Only the parties to a contract can enforce its terms (previous assignors etc could be chased)
90
What are the penalties under the Corporate Manslaughter and Homicide Act 2007?
- Unlimited fines
- Remedial orders - Requiring company to take steps to remedy management failure
- Publicity orders - Publicise how they have been convicted
- Imprisonment
91
What information was provided with the LTA such as the one at Wooburn Industrial Estate?
Information provided in writing:
- Scope of works - Including plans
- Acceptance of fees
- Site specific risk assessments
- Permit to work
- Insurances necessary
92
What happens if superior landlord consent is required?
- Advise tenant potential for increased costs and longer time of processing as superior landlord may withhold consent - Agreement may be between three parties
93
What is section 3 of the Landlord and Tenant Act 1927?
Enables a business tenant to carry out improvements which are prohibited by the lease and improve the letting value of the premises
94
What happens if you discovered unlicensed works on review or assignment?
Breach of lease
- May be able to reject assignment
- Potential to forfeit lease
- Retrospective licence
- Could rentalise (if improvement but depends on wording)
95
How do dilapidations relate to alterations?
Licence to alter an extension of the lease and will be considered at the end of the lease - May be required to reinstate and will be included in dilaps
96
How do MEES relate to alterations?
Reasonable to withhold LL consent if works negatively impact EPC rating
97
Can consent be granted retrospectively?
Yes on the agreement full plans and scope are provided to complete licence docs
98
What is a duty of care deed? What is its purpose?
A document between property manager and landlords funder - Creates legal relationship between the parties for payment of rent and general matters
99
What are some key duties of a property manager?
- Client report
- Collecting monies
- Service charge budget/rec
- Occupier liason
- Energy management
- H and S compliance
- Procurement of third party suppliers (contractors)
100
What are the issues associated with a lack of insurance?
- Increase risk if claim made
- Negligence / against the law
101
What are the two tests for insolvency?
- Cash flow insolvency test
- Balance sheet insolvency test
102
What is CVA?
Company Voluntary Arrangement
- Company in financial difficulty but not insolvency
- Makes viable proposal to creditors with aim to secure acceptable % they are owed - 75% of creditors must agree to this
- Company can continue trading
103
What is administrative receivership?
Company breaches terms of borrowing - Creditor may appoint administrative receiver to collect money owed
104
What is compulsory liquidation?
Company unable to pay its debt - company winded up and stops trading and liquidator sells of assets
105
What is voluntary liquidation?
Company unable to pay its debt shareholders put it into liquidation
- Ceases to trade
- Assets sold off to repay creditors
106
What is the difference between an insured and uninsured risk? (example of each)
Insured risk (e.g. escape of water) = risk which premises required to be insured under lease
Uninsured risk = risk not insured against (e.g. wear and tear issues or terrorism)
107
How long is PPM usually valid for?
Between 10-15 years. 10 in case of Ilford High Road
108
What are the timescales for reporting within the service charges professional statement?
Budget = Issued minimum 1 month prior to start of SC year (comments and matrix
Reconciliation = within 4 months of SC year end (expenditure cert + explanations)
109
What is a budget?
The expenditure for an individual property that the landlord/agent expects to be incurred within a set period of time (service charge accounting period)
110
What is a reconciliation?
Formally documents the agreement of the bank statement balance to the total of client money held, recorded by the cash book balance.
111
What is a reconciliation(SC)?
A comprehensive comparison of all service charge - Income demanded against all service charge expenditure (including accruals / prepayments) for a given SC accounting period.
112
What is a year end statement?
The account of service charge expenditures/costs and explanation within the service charge period. These are issued following the end of each service charge period
113
How does ADR relate to SC under the professional statement?
ADR supported and recommended as basis to settle SC disputes
- Lease has a provision for ADR and is proactively pursued
114
Tell me about the right to challenge under the service charge professional statement
- Leases should have a provision for disputes to be resolved through ADR
- RICS nominate suitable person if meditation cannot determine dispute
115
When can you forfeit a lease?
If rent remains unpaid 21 days after due - S.146
116
How would you go out forfeiting a lease?
Peacable re-entry (can't be done on mixed-use, residential or if someone is in premises)
117
What is a waiver?
If right to forfeit has arisen, if landlord acts in way that treats the lease as continuing, they waiver the right to forfeit
118
What amounts to a waiver?
Communicating with tenant once right to forfeit for non-payment of rent has arisen
119
What should you consider prior to forfeiture?
- Not to waive the right
- Evidence that a S.146 can be served
- If there is a commercial advantage to forfeiture
120
How can you pursue a former guarantor? (what legislation?)
By serving notice on former tenant/former guarantor if there is an AGA - Served within 6 months of debt arising
121
When did CRAR come into force?
2014
122
What are the requirements for CRAR?
- Minimum sum equivalent to 7 days rent outstanding
- 7 days notice before attendance - details included within notice served
- Notice served in specific way
- Time limit for seizing goods from service notice is 12 months
- Goods can only be seized between 6am and 9pm
- Goods seized must be valued and not sold for 7 days
123
What is a winding up petition? What is it used for?
- Step after statutory demand
- Statement of intent by creditor to shut down business due to unpaid debt
- Most serious legal action a creditor can take
- 7 days before financial info becomes public
124
What did CRAR replace?
Replaced the common law right to 'levy distress'
125
Is there any RICS guidance with regards to alteration?
RICS Guidance Note: Licence for Alterations in Commercial Property, 2nd Edition 2013
126
What is administrative receivership?
When a party breaches terms of its borrowing - creditor may appoint an administrative receiver to collect the money owed (Only acts in the interests of the charge holder who appointed them)
127
What are the benefits of a PPM?
- Preserves a property's condition
- Proactive approach - aims to avoid unplanned disturbances and sudden maintenance costs
128
What are the requirements under RICS Real Estate Management for rent demands?
You should submit rent demands in a timely manner and ensure they are clear and understandable by tenants
- To include relevant taxation in demand
129
What are the stages to insolvency?
1) Inform landlord and sols
2) See if T has guarantor or RD
3) Make early contact with administrator/receiver - register claim for arrears (Proof of debt)
4) Ensure prop is insured - Inform insurers it is vacant
5) Ensure prop is secure
6) Prepare schedule of dilap (deduct funds from RD)
7) Seek to forfeit lease or seek court order to end the lease
130
What are the implications of the insurance act 2016?
Introduced responsibility to policy holders to provide relevant information in aims to reduce claims
131
What is section 16 of Landlord and Tenant Covenants Act 1995?
If the new tenant doesn’t perform the covenants set out in the Commercial Lease Agreement, the landlord can pursue the old tenant assigned the lease for payment, repairs, etc. (AGA)
132
What is included within a trigger notice?
- Proposed rent
- Tenant/LL asked to sign and return as acknowledgment of receipt
133
What protection can a tenant seek regarding property repairs?
Under Leasehold Property (repairs) Act 1938
- Protects tenancies of 7 years ore more with 3 years left to run against onerous interim schedules of dilapidations
- Have to serve a counter notice within 28 days of receiving the schedule in order for landlords claim to be suspended
134
Can you CRAR a subtenant?
If main tenant doesn't pay, you have option to recover debt via subtenant through CRARing the subtenant
- Section 81 of Tribunals, Courts and Enforcement Act 2007
135
What are 12 mandatory requirements for members set out in RICS Professional Statement, Real Estate Management 3rd Edition 2016?
- Conduct business in honest, fair, transparent manner
- Carry out work with skill and due diligence
- Ensure clients are provided with clear terms of engagement
- Avoid conflict of interest, and when they arise deal with them openly and promptly
- Do not discriminate
- Ensure communications are fair, clear, timely and transparent
- Ensure all advertising and marketing is honest
- Ensure client money held in separate accounts
- Ensure professional indemnity insurance in place
- Ensure scope of obligations of work is provided to all parties - Give realistic assessment of buying/selling/rental price
- Ensure all inspections and meetings are carried out in accordance with client wishes
136
What is an effective FRI?
Business lease where a tenant is responsible for all internal repairs, whilst also contributing to the building's common and external parts through a service charge.
137
What other options would have been available to you if you didn’t CRAR the tenant at Grosvenor Place?
- Stat demand
- Draw down on rent deposit
- Forfeiture
138
Who's money is it in a service charge?
It is the tenants - They have paid these funds
139
If a tenant failed to pay their rent for one quarter – What options could you discuss with the tenant before recommending CRAR to the Landlord
- Find out issues with the business email or phone
- Visit the tenant at the premise
- Try to arrange a payment plan
- Use rent deposit
- Check for guarantors, AGA or former tenant
140
How would you CRAR an inclusive rent?
Deduce SC, rates, insurance from rent outstanding (Just chase this)
141
What does RICS Service Charges in Commercial Property set out?
Promote best practice, uniformity, fairness and transparency in the management and administration of services charged in commercial property
142
How do PPMs play into service charge?
Planned preventative maintenance are condition surveys by BS, forecast future repair costs and we consider when setting budgets to avoid large increases
143
What was outlined in the RICS Professional Standard (Reissued Dec 23): Dilapidations 7th Ed 2016?
Outlined the dilapidations protocol (pre action protocol for claims to damages in relation to the physical state of commercial prop
- Outlines PDPAC (Practice direction - Pre action conduct and protocol)
- Dispute resolver may be appointed via RICS Dispute Resolution Service (DRS)
144
What can you do if there is no Jervis v Harris clause
Serve a repair notice
145
What does RICS Guidance Note: Commercial Property Management in England and Wales 2nd Ed 2011 set out?
Summarises best practice for property managers
- Confirms PM duty of care to client
- 2 core duties: collection of rent and management of property
- Ensure occupiers know who PM is and how to contact them
146
Can you take me through the process of a subletting?
1) Read Lease
2) Undertaking for costs from assignee
3) Check covenant strength of sub-tenant
4) Check proposed rent - lease may you can't sublet under passing rent
5) Check whether there are reasonable grounds to refuse consent - e.g. bad covenant, illegal use
6) Must deal with application promptly (LL & T Act 1988)
7) Licence to sublet drawn up by sols
8) Check impact on investment value of prop
147
What RICS guidance relates to Licence to Alter?
RICS Guidance Note: Licence for Alterations 2013
148
How can a licence be documented?
- Formal licence deed
- Letter licence
- By the lease (no consent required)
149
What is the difference between debt and damages?
Debt can be recovered through debt recovery options, whilst damages can be contested
150
Do you know any new standards relating to property management?
RICS Global Professional Standard: Property Agency and Management Principles, 1st Edition, October 2024
- Effective January 2025
- States the requirements for transparency and openness when delivering services to clients to ensure openness
151
What are the main items picked up in RICS Global Professional Standard: Property Agency and Management Principles, 1st Edition, October 2024?
- Transparency Rules - Clear, open communication with clients
- Broader Scope - Not just PM but also residential and commercial auctioneering towards consistency
- Consumer protection and trust - Improve this and enhance public trust in services provided
- Industry reputation - Through high quality, transparent services
- Global impact - Applicable to all RICS members worldwide ensuring uniform global approach to PM and agency
152
What does RICS Global Professional Standard: Property Agency and Management Principles, 1st Edition, October 2024 do?
Sets out the requirements for transparency, and openness when delivering services to clients
- Aims to ensure consumer protection, improving the industry's reputation and increasing public confidence in surveyors worldwide
153
Can you tell us two things which are included within the RICS guidance note on licences for alterations?
- Advice for surveyors
- Unnecessary delay to be avoided
- To be completed before any works
154
What is the Insolvency Act 1986?
Provided the legal framework for dealing with the financial problems of individuals, partnerships and companies
- Ensures all creditors treated properly and that debtors assets are distributed in an equitable manner
- Defines clear and predictable frameowkr for insolvency process
155
What is the COVID act?
Commercial Rent Arrears Recovery Act 2022
- Give LL and T chance to negotiate solutions to lockdown related arrears - govt arbitration service if no agreement reached
- Ringfenced period from March 2020-2022 - further period to Sep 2022 to settle debts
156
When would you serve a statutory demand?
Debt other than rental arrears, also for a business that has minimal stock levels
157
What are the key principles of commercial property management?
- Manage landlord's responsibilities by law
- Support landlord in ensuring financial success of the property
- Support landlord through facilitating successful use of the property
- Manage third party suppliers
- Fulfil duty of care to client, occupiers, contractors, creditors
158
What enables you to recover fees?
Tenant's lease, alongside S.19 of L and T Act 1927 (Reasonable costs may be recoverable by landlords)
159
What are some of the guidance principles in the service charge prof standard?
- Timeliness
- Transparency
- Value for money
- Duty of care
- Communication
- Financial competence
160
How did you check that CRAR was appropriate at Grosvenor Place?
Undertook and inspection and checked the tenant was still in occupation
161
What are the different types of maintenance?
- Reactive
- Planned
- Preventative
162
How did you apply your knowledge for the Car Parking at Regents Park?
I utilised the RICS Professional Standard: Service Charges in Commercial Property, alongside my knowledge of reading leases to ensure the correct charging through a strong course of property management
163
What was the overall PPM cost for Ilford High Road?
£150,000, spread across 10 years (major costs across bi-yearly intervals)
164
What does the Private Security Industry Act 2001 do?
Law that keeps people safe by regulating private security companies and their employees
- Regulated by the Security Industry Authority (SIA) - Companies must have SIA regulated staff
165
What is the layout of RICS Prof Statement: Real Estate Management, 3rd Ed, 2016
Glossary
Intro
1) Ethics - Ensuring principles are complied to and responsibilities
2) Securing instructions - types of client and offering services
3) New lettings and lease renewals
4) Managing real estate - Principles e.g rent, sc, insurance, dispute
5) Portfolio and asset management - what is difference
6) Ending the instruction - documentation handover
7) Safety and security - data protection, h&s
8) Business management - handling client money, training
166
What is the layout of RICS Guidance Note: Commercial Property Management in Eng and Wal, 2nd ed, 2011
1) Intro
2) Purpose and scope
3) Overview (KEY PRINCIPLES) - Acting as an agent of the landlord, duty of care, managing third party suppliers
4) Prop manager core duties - e.g. liasion with all parties, SC, energy man, h&s, man fee
5) Additional responsibilities of PM
6) Landlord responsibilities to PM
7) Employees and employment law
8) Specialist issues - duty of care deed, offshore ownership
Appendix1 - Legislation relating to management of prop
Appendix2 - PMA
