Property Management Flashcards
You mention that you are aware of different reasons as to why different ‘types’ of landlords (i.e. Charity/individuals) hold assets – what are the main differences and how does this affect your management?
Charities and institutions can’t die – long term horizons. With a private client you may prepare and plan for inheritance tax, you don’t need to with a charity.
Institutional clients are looking to increase their endowment portfolio whereas a private client may have sentimental feelings towards a property/estate.
What are the landlords obligations under section 11?
To keep in repair the structure and exterior of the dwelling including drains gutters and external pipes
Water gas electricity supply and sanitation
Space heating and water heating
If a tenancy is over 7 years then the liabilities become more onerous on the tenant.
What information do you hold on your property terrier?
We use a system called Propman at Bidwells which contains all relevant information and is broken down into sections such as the client, estate, property, unit, tenancy, tenant. Also includes other important information such as EPC, GSR, EICR, Asbestos Reports. Can provide diary reminders for service of notices and renewals.
What notice do you serve on an AHA tenant to review the rent?
Section 12 notice with 12-24 months before the review not more than every three years
What are the notices for an FBT
Section 1(4) notice - states that the tenancy is t o be and remain a farm business tenancy. Should be signed before the tenancy begins
Section 5 notice – termination
Section 10 notice – Rent to be reviewed
What are MEES?
Minimum Energy Efficiency Standards – aim was to encourage landlords to improve the energy efficiency on their properties.
Prevented properties being let which are below an E
When does MEES come into force?
1st April 2020 for all residential lettings - 1st April 2023 for all commercial lettings
What are the rules of succession (Rent Act)?
Depends on dates if tenant died pre 15 Jan 1989 then they could have two successions. If post 15 Jan 1989 then they will have one succession to family member who has lived in property for 2 years prior to death can get an assured tenancy (OM rent).
What are the TDS Rules?
Deposit must be lodged with an assured scheme within 30 days of receiving deposit. Prescribed information should then be given to tenant regarding their deposit.
Deposit can only be max of 5 weeks rent (or 6 weeks if over £50,000)
Deposit must be returned within 10 days of agreeing how much should be returned
What was introduced under “Right to Rent”?
Introduced by the Immigration Act 2014
You need to check that a tenant or lodger can legally rent your residential property in England.
Must check all tenants aged 18 or over
Are you aware of any other recent legislation impacting AST’s?
Tenant Fees Act 2019 removed right for landlords to charge certain fees, only 5 weeks rent deposit, only £50 charge for certain fees.
What are the repairing obligations of the Act (Rent Act)?
Where the agreement is silent section 11 of the LTA 1985.
What is CDM?
The Construction Design and Management Regulations 2015 are the principlal H&S legislation impacting on “construction” works.
What are the requirements of CDM?
Construction (Design and Management) Regulations 2015
Applies to all construction work
Three duty holders – client, designer (principle) and contractor (principle)
If over 500 days work or 20 men for 30 days then HSE to be notified
Exemptions of MEES?
Tenancies under 6 months of over 99 years
Buildings without heating, non resi agricultural buildings, temporary buildings, places of worship
Buildings less than 50 sq m
Some listed buildings
If over £3,500 to comply
If tenant refuses
If the property will be devalued by compliance
If all measures completed
If new landlord (6 months)
What compliance regulations are there for properties?
Homes (Fit for Human Habitation) Act 2018 – safe, healthy, free from harm
Electrical compliance safety
EPC minimum of E
Gas Safe Register and oil checks
Smoke and Carbon Monoxide
TDS scheme, how to rent, right to rent, deposit, legionella
Asbestos plan
What are the rules for Landlord’s serving S.21 Notices?
Following deregulation act 2015, certain rules must be met
● Deposit only 5 weeks and registered with TDS and tenant served prescribed information
● How to rent guide – most recent
● Valid EPC
● Gas Safe Register
● Not awaiting any repairs/maintenance following being reported
● Cant be served within 4 months of tenancy starting
How long do Section 31(6) Deposits last for? Do they stop all rights of way being established over the land?
Statement and deposit last for 20 years.
they prevent all future RoW being established but are not retrospective rights previously used may still be claimed.
What are the three levels of CDM and what are their obligations?
Client – contractual control appoints designers and contractors, determines budget, time and other resources
Principle (if more than one contractor) designer – planning, managing, monitoring the preconstruction phase
Principle (if more than one contractor) contractor – planning managing, monitoring the construction phase
General requirements – safe, secure, stable structure, emergency procedures, safe traffic routes, first aid, temperature and weather protection, lighting, sanitation
What are the regulations govering Oil boilers?
OFTEC
How do you choose your contractors?
Dependant on the type of work:
- Safecontractor database
- Federation of Master builders
- Referal
- Always check their Insurances (public liability)
- Check RIDDOR database
- Ensure they have the correct certificates for the work they undertake
What would you do if a property became vacant?
Look at strategic options for that property, is it best to re-furb, re-let or sell?
When is a Tenancy an AST?
your original tenancy started on or after 28 February 1997
you don’t live with your landlord
more than £100,000 a year or less than £250 a year
What are the regulations for Woodburning Stoves?
HEATAS
What are some contractor qualifications?
NIC - Electrician
Gas Safe - Plumber / boiler
Federation of Master builder - general
Explain some recent legislative changes in relation to residential property?
The new regulations surrounding EICRS which require from 1st April 2021 that all let residential property has a valid EICR.
Say you instruct programs a property repair works. How do you advise your client on suitable level of expenditure? Do you have a view on an acceptable percentage of annual income to spend on property repairs?
This is not something I have dealt with in practice however I understand a typical annual spend would be 10 – 20% of the annual rent for a residential portfolio.
You served a section 21 notice. Do you need to give a reason to support a notice? How has the coronavirus act 2020 affected notice period?
No a Section 21 is a no fault eviction, the Coronavirus Act has extended the period to 6 months from 2.
Exception from this is where Anti Social Behaviour has been committed – then usual timeframes.
What health and safety considerations you take into account when instructing works?
That the contractor is appropriately skilled and qualified for the work, that proper RAMS are produced for the job, that CDM regulations 2015 are followed,
What changes have Covid made to serving notice on residential tenants?
From 29 August 2020, landlords must give six months’ notice to tenants when serving a section 21 notice, which is the notice used to end an Assured Shorthold Tenancy. This supersedes any break clause included in the tenancy agreement.
Meaning that if the tenancy agreement has a break clause saying the landlord can end the tenancy by giving two months’ notice, they will have to give the 6 months’ notice.
Previously, a section 21 notice would only be valid for six months, meaning a landlord would have to issue court proceedings on the expiry of the notice, and no more than 6 months from the date of the notice.
This has also been amended to reflect the recent extension to notice periods required and a section 21 notice will now remain valid for 10 months from the date it is served.
If a section 21 notice was served and received before 29 August 2020, the notice period is three months, in line with the changes made earlier this year.
What changes have been made to Section 8 NTQ for residential tenancies?
Section 8 notices must also give a notice period of six months’ except for in some circumstances. For a section 8 notice, you must clearly state under which grounds you wish to rely upon for possession.
If a section 8 notice needs to be served as a result of tenants incurring rent arrears or misleading information, a landlord must allow six months before gaining possession. However, if the rent arrears exceed six months rental payments, the notice period reduces to four weeks.
There are a number of other scenarios which allow for less notice including:
In cases of domestic abuse or riot, two weeks’ notice will be sufficient.
Where landlords are seeking possession as a result of antisocial behaviour, four weeks’ notice will be sufficient.
Where tenants are required to vacate property as a result of failed follow up Right to Rent checks, 12 weeks’ notice will be required.
What are the regulations surrouding Oil Boilers?
No specific legislation, the landlord however has a oblication under Section 11 LTA 85 to maintain.
In line with good practice we service them annually
What are the requirements of the Landlord with regard to Chimney Sweeping? Is this a legal requirement?
No specific legislation
The Landlord is legally responsible for ensuring the safety, working and servicing of all heating and hot water installations in a rental property. …
This responsibility includes all flues and ventilation, and it is the landlord’s responsibility to have all chimneys swept annually in a rental property
What is revenue vs capital expenditure?
Capital expenditures are typically one-time large purchases of fixed assets that will be used for revenue generation over a longer period.
Revenue expenditures are the ongoing operating expenses, which are short-term expenses used to run the daily business operations.
How do you go about gaining posession if the tenant refuses to leave – after a Section 21/ Section 8 NTQ?
See a possession order from the courts – can take six weeks, then the court will issue to the tenant, if they then don’t leave bailiffs can be instructed.
What is a JCT?
A Joint Contract Tribunal agreement – contract for works that is usually used for larger job where if not completed by a certain date then fines are payable.
What are the three types of damp?
- Rising
- Penetrating
- Condensation/ Internal
What duty of care does a landlord have to people on their land, even trespassers?
Under the Occupiers Liability Act 1957 and 1984 the landowner has a duty of care to anybody who is invited and also to a lesser extent to those trespassing and the Landowner could be liable for any accidents involving anyone on your land caused by the state of the premises.
People who enter your property without permission are owed a lesser duty of care which only arises where you:
- know of a danger that exists on your property or where you have reasonable grounds to believe a danger exists;
- know or have reasonable grounds to believe that someone is near or may come near to that danger; and
- it is reasonable to expect you to offer some protection from it.
What level of insurnace would you expect a contractor to have?
Dependant on the level of risk of the work.
£5-10 million public liability insurance
£10 million employers liability
Potentially PI insurance
Equipment and vehicles insurances
