Case Study Flashcards
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) £/sq.m as metric and discussed with a colleague RICS registered valuer.
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 plans to raise this to a minimum of C by 2030. Scotland to introduce radical changes to EPCs in 2026.
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 specific quote was not sought for option 2; a larger square meter would be renovated, including a store with no fittings, carpets, or ceiling.
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 before renovation: £425, Rent after renovation: £675. Similar property nearby let for £700pcm
What are the key steps for obtaining a building warrant?
Determine if your project requires one, 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, Building Warrant, 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.
What was your advice as to cost of letting the Property?
Agents fees (time: £100/hr) and marketing fee.
Talk through your communication strategy with your Client through this instruction.
Email updates on progress.
How did you exemplify one of the professional and ethical standards under RICS in this instruction?
Provided a good quality of service.
How did you add value to your Client achieving their Property objectives?
Property was relet at a significant increase and in much better condition.
How did your advice align with the objectives for this instruction?
Adding trading value and improving housing stock.
What would you do differently next time? How did you act ethically? What were your key achievements?
Instruct building warrant quicker, ensure outlet ventilation pipe is compliant before Council Planners inspect. Provided a good quality of service, not discriminating during letting service.
Are there other ways to create a PRT?
It is not necessary to use Model PRT - a different format of agreement can be used as long as it complies with the provisions of the 2016 Act.
Talk me through your comparables
Category A comparables using £/sq.m as guide. 6 Ingleton view, similar type with good interior decoration. 1Auchenfranco smaller but better garden.
The Cottage Waterbeck, same poor condition but larger sq.m.
Why was a building warrant used?
Work was internal, it was out with the conservation area and no external works other than the extractor fan cowls at the back of the property
Can landlord choose against allowing pets?
Yes, but default assumes pets are allowed. Discretionary section in PRT
What are the CDM Regulations 2015?
To ensure projects are undertaken safely. Notifiable projects longer than 30 days and involve more than 20 workers simultaneously
How was the project undertaken safely?
The contractor has a Health & Safety at Work Policy complaint with 1974 Act and necessary insurance. On our approved contractor list.
Why was building warrant chosen over planning permission?
It’s not a listed building, All the work was internal, it was out with the conservation area
What was the value of the renovated property £/sq.m?
£2,530
What was the value of the existing property £/sq.m?
£1,190
What were the discretionary clauses?
No smoking, No pets
