Leasing/Letting Flashcards

1
Q

Why would you advise your client to proceed with a lower offer?

A
  • Often our clients are looking for long terms tenants, therefore the rent is not the only factor to consider
  • The tenancy agreement is clear about the procedures should there be breaches of the terms
  • We also undertake referencing prior to a tenancy starting on the potential tenants
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2
Q

What are other factors (other than size, location & character) that might affect a properties marketability?

A
  • The market - specifically how much demand there is in the market
  • The market - availability of similar property in the local area
  • Compliance - for residential, does it comply with MEES, electrical safety standards
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3
Q

What are other factors (other than size, location & character) that might affect a properties value?

A
  • Condition
  • ## Local amenities such as good schools, transprort links
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4
Q

What are other factors (other than size, location & character) that might affect a properties value?

A
  • Condition
  • Local amenities such as good schools, transport links
  • Number of bedrooms
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5
Q

What property lettings have you done?

A

Agricultural - licences, fbts
Residential - Ast’s from start to finish
Commercial - storage licences, Office leases, Storage leases

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6
Q

What is the typical rent for XXX in your local area:
Residential:
Commercial:
Agricultural:

A

Residential Rents - AST rents between £17-£23 /sqft
Commercial Office - £11-13 / sqft
Commercial Storage (inside) £4 / sqft
Agricultural - FBT grazing - £80 / acre
Agricultural - FBT arable - £130-150 /acre
Licence - dependent on terms, pony paddock may be £400 / acre

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7
Q

What legislation governs residential tenancies?

A

Housing Act 1988, Housing Act 1996, The Landlord & Tenant Act 1985

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8
Q

What legislation governs commercial tenancies?

A

The Landlord & Tenant Act 1954,

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9
Q

What legislation governs agricultural tenancies?

A

The agricultural tenancies act 1995, The Agricultural Holdings Act 1986

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10
Q

Please can you talk me through a residential letting from start to finish?

A

Assuming this is for a management client - we would already have signed terms of engagement
Firstly ensure the property is compliant and in good order for reletting.
Secondly I would advise the client on likely market rent and await instructions
Once received, I take pictures, market online, once interest received I undertake viewings. Any offers following this are fed back to the client with my recommendations how to proceed.
Once instructions to proceed are received, I arrange for the tenancy documents and other compliance documents ahead of the tenancy starting. As well as cleaners & schedule of condition. following receipt of first months rent & deposit, I meet them on the term commencement date with keys.
I then update our property terrier system

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11
Q

What do you need to serve prior to a tenancy starting?

A

How to Rent Guide
Information leaflet on the Tenancy Deposit Scheme
TDS certificate if already received & registered
Draft AST including prescribed information
EPC
EICR
Landlord Gas Safety Certificate
Property schedule of condition if already received

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12
Q

What are MEES regulations?

A

They are a requirement for landlords to ensure that prior to letting a property they have a valid EPC, with a grade E or better, or exemption registered

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13
Q

When did properties need to comply with MEES regualtions?

A

For new tenancies from 1st April 2018 and existing tenancies form 1st April 2020

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14
Q

What are the changes to EPC’s?

A

The government has proposed to change the minimum band from an E to a C, from 2025 for new tenancies and 2028 for existing
They have also proposed to increase the cost cap for improvement works to £10,000 from £3,500, before an exemption can be registered
They have also proposed to increase the penalty for not having an EPC, from £5,000 to £30,000

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15
Q

When do you need to get an EPC?

A

On a trigger event such as re-letting or sale

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16
Q

When do properties need to comply with for MEES regulations?

A

For new tenancies from 1st April 2018 and existing tenancies form 1st April 2020

17
Q

What are the EPC exemptions?

A
  • ‘All relevant improvements made’ exemption - if you have already spent £3,500 and the property is still not an E grade
  • ‘High Cost’ exemption - if the first recommended improvement would cost over £3,500
  • Wall Insulation exemption - if the only recommendations are wall insulation. And a building surveyor has said this would negatively impact the fabric of the building
  • Third Party Consent exemption - To undertake improvements you need third part consent which can not be reasonably obtained
18
Q

How do you undertake right to rent checks?

A

I find out everyone over 18 who will be living at the property.
I will then ask to see their original ID documents and them in person. I would scan a copy in and save on file. Stating the words ‘certified to be a true copy of the original’ and signed and dated.

19
Q

When were right to Rent Act checks introduced?

A

They were intorduced through the Immigration Act 2014 and made a criminal offence under the Immigration Act 2016

20
Q

How long does your data stay on your file for?

A

We aim to keep information for a period of six years

21
Q

What do you need to ensure when preparing particulars?

A

They are clear concise and not misleading.
Consumer Protection from Unfair Trading Regulations 2018
Estate Agents Act 1979

22
Q

Who can undertake works under the gas safety regualtions?

A

A gas safe registered engineer

23
Q

What legislation covers gas appliances in properties?

A

The Gas Safety (installation and use) regulations 1998

24
Q

Why did you use the words subject to contract?

A

It means that there is no intention for the contract to be legally binding at this stage

25
Q

How did you document the fence repairs in the licence?

A

I accompanied it in a side letter to the agreement which he also signed

26
Q

What development potential was then Hampshire?

A

There was potential for a 2 bed house scheme, therefore we wanted to retain the land should this be granted

27
Q

What works were required to relet?

A

The property needed internal decorations, a new carpet throughout, also the Kitchen was quite pokey and I proposed opening up the room by taking out a non load bearing internal wall

28
Q

What works did you propose to improve the property to a C band?

A

Low Energy lighting
Increase loft insulation
Double glazing throughout
Internal wall insulation on external walls

29
Q

Why would the works increase capital value?

A

I was specifically referring to the Kitchen improvement works, which would be reflected in the property price.
I am also aware that properties with better EPC’s are likely to be more attractive to purchasers because of lower bills and better compliance