Property Management 1 Flashcards
Talk me through the process to assign a lease?
Read the lease and check the alienation provision
Find out who you’re assigning too to carry out financial review, credit report, sanctions check
What is a ground for reasonably withholding consent?
Use of property
Covenant strength
How might you protect landlords interest in an assignment?
Request an AGA and additional rent deposit
What is an AGA
Authorised Guarantee Agreement
Outgoing tenant guarantees the performance of the incoming tenant
What legislation is AGA?
Landlord and Tenant (covenants act) 1995
What section of the act allows you to pursue a guarantor?
Section 17 of Landlord and Tenant (covenants) Act 1995
How long do you have to pursue a guarantor?
6 months from debt arising
If guarantor pays the arrears, what dos it give them the right to do?
Get an overriding lease
Whats the first thing to do when a tenant falls into arrears and aren’t responding to emails?
Go to site
Check RD
Check Guarantor
CRAR
What are the stages of CRAR?
Minimum 7 days outstanding
7 day notice
Visit site, and take stock and enter controlled goods agreement
Whats the value of the goods that can be seized?
Value of rent outstanding
What can’t enforcement agents seize?
Anything on finance/leased
Tools of the trade
Can you speed up the CRAR process?
Court order to reduce 7 day notice
If you have a retail unit with a flat upstairs, can you CRAR the retail unit?
CRAR under the commercial lease
What if the property is let on an overriding lease? One lease for both retail ground and flat above?
No cannot CRAR
If you want to wind-up the tenant, what do you do?
Serve a stat demand
If you want to gain possession, but don’t want to wind them up, what would you recommend?
Peaceable re-entry (change locks) – 21 days after due is normal
Check forfeiture clause as it may be different
How do you regain possession for a breach in repairing covenant?
Serve a S.146 notice
How do you serve a S.146 notice?
Through court (via solicitor)
How long does a tenant have to rectify a repairing breach S.146?
6 months
What’s the principle of the SC code?
Promote transparency and seek to resolve disputes
How does the SC code seek to improve transparency and resolve disputes
Sets out 9 mandatory requirements
What are some of the 9 mandatory requirements set out in the SC code?
All expenditure in accordance with the lease
Budgets within 1 month and recs within 4 months
Apportionment matric and explanatory comments issued with all budgets / recs
Service charge monies must be held in one or more discrete bank accounts
Must not recover more than 100%of actual expenditure
What are management fees based on?
Fixed fee, based on a reasonable time spent
What would you typically expect to see in a SC budget?
Apportionment matrix
Explanatory comments
Management fee
Landscaping
M&E contract provision
previous years budget figures
anticipated expenditure for the current year
What do you do if there is a surplus in the SC account at the end of the year?
Return to tenants through BSC
How might you protect your Clients and tenants if you have a PPM that indicates that there will be substantial works of repair to the property in 5 years?
Sinking fund
What is a sinking fund?
Monies gathered ispecifically for certain repairs to be undertaken in the future
What would you do if you had a situation where there was unforeseen expenditure?
Forward fund from the landlord and then recover in following budget years (phased increase or in 1 year)
