L3 Property Management

Question 1

What RICS GN or PS could you refer to? (217 HR)

Answer 1

RICS GN Health and safety for residential property
managers 1st edition, January 2016

Service charge residential management Code and additional advice to landlords, leaseholders and agents (3rd edition, June 2016)

Real Estate Management (2016)

Question 2

What is a DfM report and what is its purpose? (217 HR)

Answer 2

Detailed understanding of the current scheme to ensure
that the management concept is deliverable on
a practical level.

Intended to refine the design and inform the OPEX budget

We advise on outstanding/unresolved issues in respect of the design in relation to the management arrangements for all uses and tenures

Question 3

What other categories might you include here? (217 HR)

Answer 3

external (CCTV, facade, window cleaning, landscaping etc.)

vehicle and cycle (access and storage)

delivery strategy (large items, concierge, parcel lockers)

refuse collection

building access

security and cleaning strategy

Question 4

How was the report set out and what was the format? (217 HR)

Answer 4

Categorised into following as a report, with recommendations against each:
Externals
Vehicles & Cycles
Deliveries
Refuse Collection
Building Access
Cleaning
Back of House

Question 5

What were the issues relating to refuse and recycling? (217 HR)

Answer 5

The distance which bins had to be carried from StM to the bin store

Access to the bin store from street and ensuring security and that these were locked

Access to bin store via building need to be secure

Question 6

What is a refuse strategy and what does it cover? How long is it? (217 HR)

Answer 6

May have to check local borough requirements for storage and collection - Westminster demand 60% recycled and hence number of bins reflect this

Have to contact them to arrange collections and offer them keys / codes

Number of bins generally calculated by architect who checks local borough requirements

Question 7

What is a window and facade cleaning strategy? What does it cover and how long is it? (217 HR)

Answer 7

May be requirement to supply this by LPA

To ensure building is kept clean and sightly to look at

More from a safety perspective to consider access

To check if MEWP can be used, Mansafe or Water-fed pole (if long enough)

Question 8

What is a mansafe system? (217 HR)

Answer 8

Horizontal safety lines designed to keep people safe whilst working at a height.

Mansafe is often used to describe different equipment such as eyebolts, guardrails or ladders but is a specific brand name of Latchways for their horizontal fall protection systems.

Reliance on contractors to assess risks and determine the appropriate work method, AND on landlords / agents, but specialist advice should be sought (could refer to HSE)

Window cleaners should not be permitted to stand on
external window ledges unless eye bolts are provided that they can attach to

Question 9

What are the pros and cons of a crane, cherry picker and mansafe? (217 HR)

Answer 9

If a reach and wash system is not possible because the windows are too high up, mansafe / specialist access equipment required

Question 10

What is the purpose of BS EN 795? (217 HR)

What does it cover?

Answer 10

Personal Fall Protection Equipment

Fall risks are greater when works are required to the exterior of a building

A reliable anchor device = essential component of any personal fall protection system

devices are now tested for deformation, dynamic strength and integrity, static strength

Question 11

What other standards did you consider? (217 HR)

Answer 11

The Work at Height Regulations 2005

Could refer to the HSE and Industrial Rope Access Trade Association

Question 12

How much of an allowance did you make in the SC budget for mansafe testing and how regular? (217 HR)

Answer 12

BS EN 795 states at least every 12 months

An independent risk assessment should be undertaken to determine if a more frequent visit is required

We allowed bi-annual testing at £500+VAT each time

Question 13

What else could you have advised on? (217 HR) - THINK ESG AND RULE 3 OF ROC

Answer 13

More considerations of ESG (AS PER RULE 3)

Question 14

What were the largest cost differences? (Sutton)

Answer 14

Repairs / maintenance

Voids

Security

Question 15

What were the cost savings? How did you identify these? (Sutton)

Answer 15

Void period of 10 days is achievable as the asset stabilises

Doubling up on security, so use estate security

Recovery of bad debt could be offset by a slight increase in legal fees

£34,160 could be achieved if the Assistant Manager and Facilities Manager roles are combined

Question 16

What is an estate service charge? Who pays for the estate service charge? Why have an estate service charge? (Sutton)

Answer 16

Generally applicable where there is more than one tenure (in this case, there was commercial, hotel etc) so need to apportion costs

This was carried out on a per SQFT basis for the purposes of this comparison exercise (we weren’t appointed to carry out full SC budget)

Would have applied benefit of use as per RICS Code and applied ‘reasonableness’

Question 17

What comparables did you use? Surely every estate is so different? (Sutton)

Answer 17

£0.87psf for estate SC - we’ve seen some as low as £0.20

But can get a rough estimate depending on number of units and location of a scheme

Question 18

What were the pros and cons of doing directly appointing estate security? (Sutton)

Answer 18

Cheaper and more control over costs

Company is expert in estate security and they manage staff themselves

Question 19

What is a churn rate? How did you arrive at 48%?(Sutton)

Answer 19

percentage of tenants who leave their unit within a given time

likelihood of tenant change

nature of demographic - families attracted to this area

Question 20

Why 18 days? Why not target 7 days? (Sutton)

Answer 20

Due to the maintenance requirements of the flats, 7 days may be unrealistic at this time.

Do not want to lead client astray

Question 21

How do you calculate rent loss? (Sutton)

Answer 21

(ERV / day x churn rate x avg void period) / annual ERV

Question 22

How else could you limit void periods? (Sutton)

Answer 22

Could use short lets

Treat existing tenants well and incentivise them

Maintain a good relationship

Offer rent incentives

Offer a longer lease

Question 23

What do you mean by proactive marketing? (Sutton)

Answer 23

Ensure that sufficient notice is given so you can commence marketing (you might approach the tenant before 2 months to confirm)

Have images in place at ready

Notify tenant in advance of viewings

Question 24

What advice did you give to your client (217 HR)?

Answer 24

That we consider secure by design document (2019)

Developed by police - recommendations on access and in accordance with building regulations

Question 25

Could you have considered any other suitable options and why were they discounted (217 HR)?

Answer 25

SPACE CONSTRAINTS

Water feeding pole (not right angle)

Crane / cherry picker (but limited access and removal of trees) / MOBILE ELEVATING WORK PLATFORM MEWP

Abseil was only way - eyelets / hooks installed top of building to allow for potential abseiling

Question 26

What safety considerations did you think about with abseiling (217 HR)?

Answer 26

Rope access window cleaning has its standards set by IRATA (Industrial Rope Access Trade Association)

operates a formal training and certification scheme.

This ensures that anyone performing the window cleaning services can do so safely

The Work at Height Regulations 2005

Could refer to the HSE and Industrial Rope Access Trade Association

Question 27

How did the introduction of the Building Safety Bill impact your advice within this report? (217HR)

Answer 27

Interestingly this came in force in July 2021 just after we issued the report BUT we were aware of it at the time.

I would have advised them to maintain a golden thread of information to ensure compliance and safety, particularly when considering construction products, and that they belong to the NEW HOMES OMBUDSMAN

Appoint an ACCOUNTABLE PERSON (NOT A BUILDING SAFETY MANAGER)

I would also point them in the direction of our other team who handle building safety for expert advice

Question 28

What advice would you give to a client who was intending to save money through non-payment of VAT on salaries, by directly employing their site staff? (Sutton)

Answer 28

VAT is payable on management fees by managing agent to recover / recharge cost of staff who are jointly employed by both businesses

VAT can be avoided by having a contract which says that the charge is for reimbursement of employment costs, not a management charge and directly employing staff

no overheads, profit or VAT would be payable.

Question 29

What are the benefits of outsourcing management and employment of staff?

Answer 29

No employment risks
Easy to change staff if they are not good enough
Cover for sickness and holidays
No direct management responsibilities
Experienced management team
Ongoing support and training

Question 30

What are the benefits of employing staff in house?

Answer 30

No overheads, profit or VAT would be payable

More control

Good experience for future assets

Question 31

How much notice do tenants need to give when moving out?

Answer 31

DEPENDS ON WHAT THE AST SAYS BUT USUALLY 1 MONTH

At the end of the fixed term the tenancy ends and under statutory rules there is no stipulation that the tenant must give notice.

The tenant can leave without giving notice, providing they leave before or on the last day of the tenancy.

However, if the contract stipulates a formal notice period then the tenants should comply with this.