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EHAPC > PE Property Management > Flashcards

PE Property Management Flashcards

1
Q

What is the key RICS guidance for property management?

A

> Commercial property management in England and Wales 2nd edition, Guidance Note

> Real estate management 3rd edition, Professional Statement

> Service charges in commercial property 1st edition, Professional Statement

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2
Q

Which of these are statutory obligations for a property manager to be aware of?

A

> Asbestos management
Business rates
Contamination
Equality Act 2010
EPCs and MEES
Fire Safety
H&S
Legionnaire’s disease
Occupiers’ liability
PAT testing
Planning
Waste management

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3
Q

What does the Cost of Leases Act 1958 say?

A

Unless agreed in writing, a party to a lease is under no obligation to pay all or part of other party’s costs, i.e. each party pays their own costs

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4
Q

Which of these are the current English quarter days?

A

25 March, 24 June, 29 September and 25 December (MJSD)

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5
Q

When invoicing for rent, what should you check for?

A

> Timing of payments
Interest on arrears
VAT position
If service charge is reserved as rent
Circumstances where rent should not be accepted

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6
Q

When might you not recommend accepting a rent payment?

A

> To avoid waiving right to forfeit
Where an outside Act lease has expired as it may create security of tenure

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7
Q

What are the warning signs for rent arrears?

A

> Bounced cheques
Tenant ceased trading
Persistent late payment
Arrival of post-dated cheques

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8
Q

What is a remedy for a rental default?

A

> Payment plan
Court proceedings
Use rent deposit
Pursue former tenant(s)/guarantor(s)
Statutory demand
CRAR
Forfeiture

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9
Q

What type of notice can be used to pursue a former tenant or guarantor?

A

> Section 17 - Landlord & Tenant (Covenants) Act 1995

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10
Q

What is the timescale for a Section 17 notice to be served?

A

> 6 months

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11
Q

What is the limit of debt for a statutory demand to be issued?

A

> £750

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12
Q

When did CRAR come into force and what did it abolish?

A

CRAR came into force in April 2014 and it abolished the Common Law of Distress (Distraint)

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13
Q

What sums can it not be used for?

A

> Service Charge
Insurance

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14
Q

How long does the rent need to have been outstanding for to use CRAR?

A

7 days

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15
Q

Can an enforcement agent enter through a window?

A

No - only an open/unlocked door

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16
Q

Can forfeiture be implied?

A

No - it must be an express provision in a lease

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17
Q

What is the effect of forfeiture?

A

A landlord can re-enter and gain posession for breach of lease

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18
Q

What RICS guidance relates to service charges?

A

Service charges in commercial property, Professional Statement - 1st edition (September 2018) - effective from 1 April 2019

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19
Q

What is the main change in the new Professional Statement?

A

Mandatory not just best practice

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20
Q

What should service charges be?

A

Not for profit, not for loss

21
Q

Can the RICS Service Charge Professional Statement override the terms of a lease?

A

No - but it can be used to interpret a lease

22
Q

What information must be provided to tenants if a service charge is operated?

A

> Service charge budgets, including appropriate explanatory commentary (annually)
Approved set of service charge accounts (annually)
Service charge apportionment matrix (annually)

23
Q

If a dispute exists, what sums can a tenant withhold?

A

Only service charge sums in dispute

24
Q

What is an accrual?

A

Expenses incurred in a period for which no invoice has been received at the period end

25
Q

What is a balancing charge?

A

Difference between an individual tenant’s apportionment of expenditure and on-account service charges demanded for an accounting period

26
Q

What is an on-account service charge?

A

An estimated charge raised in advance and anticipation of the final service charge liability, calculated from the service charge budget

27
Q

What does PPM stand for?

A

Planned preventative maintenance

28
Q

What is PPM? (Planned Preventative Maintenance)

A

Maintenance performed purposely and regularly to keep the fabric, facilities, plant and equipment of a building on satisfactory operating condition

29
Q

How often is a PPM usually prepared?

A

5-10 years in advance, but reviewed and updated regularly

30
Q

What is the purpose of a reserve fund?

A

To meet anticipated future costs of maintenance and upkeep in order to avoid fluctuations in the amount of service charge payable each year

31
Q

What is the purpose of a sinking fund?

A

To periodically set aside money for the replacement of a wasting asset

32
Q

What does SICC stand for?

A

Standard Industry Cost Classifications

33
Q

Why might an occupier decide to sublet rather than assign a lease?

A

> Requirement of the lease
Relates to part not whole of the demise
If there is a profit rent
If the tenant might want to re-occupy in the future

34
Q

What duty does the Landlord & Tenant 1988 impose on a landlord?

A

To deal with consents diligently and within a reasonable time

35
Q

When did the Landlord & Tenant (Covenants) Act 1995 come into force?

A

1 January 1996

36
Q

What did the Landlord & Tenant (Covenants) Act 1995 abolish?

A

Privity of contract

37
Q

What is the position in an ‘old’ pre 1 January 1996 lease?

A

Original tenant remains liable until expiry

38
Q

What should you request if considering a tenant’s application to alter?

A

> Full plans and specification (in line with the terms of the lease)
Undertaking for surveyor’s and legal costs
Whether planning permission or Building Regulations approval is required
Compliance with legislation, eg. Equality Act 2010 and CDM 2015
Risk Assessment & Method Statement (RAMS)
Finance bond held by the landlord (if approp)

39
Q

What does a breach of repairing covenant require?

A

Both disrepair and an obligation to repair

40
Q

What is the effect of a Section 146 Law of Property Act 1925 notice?

A

Served on the tenant during the lease to remedy a specific repairing or decorating breach

41
Q

What is the impact of a Jervis v Harris clause?

A

Express right for a landlord to enter, carry out repairs and recover the cover from the tenant as debt, not damages

42
Q

What is the impact of the Leasehold (Property) Repairs Act 1938?

A

Protects tenants by limiting a landlord’s right to claim damages or forfeiture for disrepair during a tenancy

43
Q

What does the 1938 Act apply to?

A

Leases over 7 years with more than 3 years to run

44
Q

What is a Schedule of Condition?

A

Limits a tenant’s repairing liability in respect of agreed itmes of disrepair during a lease

45
Q

What is the basis of a typical full insuring clause?

A

Landlord insures, tenant reimburses

46
Q

What is an insured risk?

A

Risks that a landlord is obligated to insure against

47
Q

What happens if a property is damaged by an uninsured risk?

A

> Tenant responsible for remedying damage under repairing obligations, unless this is limited under the lease

> Tenant continues to pay rent, despite the building being damanged and being potentially uninhabitable

48
Q

What are typical examples of uninsured risks?

A

> Flooding
Terrorism
Subsidence
Heave

EHAPC (41 decks)

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