Property Management Flashcards
What is property management all about?
The occupier
Name 3 different types of maintenance
1) Reactive - repair emergencies.
2) Planned - regular condition schedule checks.
3) Cost reduction - Utility switching and efficiency bench marking.
What certifications are necessary?
- EPC
- H&S Certs e.g. fire safety cert, FWT, gas cert, asbestos management.
What considerations ought to be taken for voids/vacant property?
- Empty rates.
- Vandalism.
- Disrepair - Frost, water damage etc.
- Insurance.
- Security.
- Disposal strategy - incentives…
When do empty rates apply for office, shops and industrial?
- Office and shops 3 months.
- Industrial - 6 months.
What is the 42 day rule?
Property must be occupied for business purposes for 42 days before a grace period can be triggered.
What are the 4 Ps?
Price, people, place, promotion.
Service charges in Commercial Real Estate 1st edition 2018.
- Improve standards and best practice.
- Ensure timely issue of budgets and year-end certificates
- Reduce dispute and guidance on resolution
- Provide guidance of SC in negotiation.
Resources for benchmarking SC
- OSCAR - JLL.
- International Total Occupancy Cost Code (ITOCC)
- 24 core principles in 2018 SC code.
- Reconciliation.
On what basis should property managers arrange insurance?
PM arrange for LL, equivalent reinstatement basis.
What is important for Rent collection?
- Accuracy of info.
- Timing.
What are penalties for arrears?
- S.17 L&T (covenants) Act 1995 - must act quickly, 6 months.
- If Not served in time, can’t chases guarantor or former tenant.
- Interst 2-4% above base after 14 days.
Remedies for non-payment of rent
- Visit property
- Rent deposit
- Guarantor
- Payment Plan
- CRAR
- Statutory demand
- Forfeiture
- Court proceedings
What legislation governs insolvency?
Insolvency Act 1986
Name 5 types of insolvency
- Administration
- Company Voluntary Arrangement (CVA)
- Receivership.
- Voluntary liquidation.
- Bankruptcy
Equality Act 2010
Access for disabled, reasonable adjustments to be made.
Why do property managers need to be careful with H & S?
Liable under Corporate Manslaughter and Homicide Act 2007.
- Death caused by negligence.
- Unlimited fine.
- Property manager’s role examined.
Name 3 types of asbestos
- Blue - Crocidolite - insulator most harmful
- Brown - Amosite
- White - Chrysotile - asbestos cement, least harmful
Illness caused by asbestos
Asbestosis
Remedies for asbetsos
Encapsulation or removal
Air conditioning R22
Refrigerant R22 banned since Jan 2015 - units may need replacement sooner as cannot maintain.
Which Act creates responsibility of visitors to a property?
Occupiers Liability Act 1957
Which Act creates responsibility of non- visitors to a property?
Occupiers Liability Act 1984
What is Code of Practice for commercial property relationships during Covid 19 pandemic?
Contains further advice on SC during pandemic: Accurate, low cost where possible, management fees are accurate etc.
RICS GN Commercial Property Management 2nd edition 2011
Low margin area
Customer service important
Remedies for Rental Arrears
- Visit the tenant to understand what is happening.
- Payment plan.
- Rent deposit.
- Guarantor/sub tenant
- Commercial Rent Arrears Recovery.
- Forfeiture for non payment of rent.
- Debt claim (courts).
- Surrender.
- Statutory demand.
- Winding Up petition.
- Recover from former tenant (pre 1996 leases).
The Coronavirus Act 2020
Restricted a landlord’s ability to recover possession of commercial premises following non-payment of rent from March 26, 2020 to June 30, 2020.
Extended with the current restrictions in place until March 25, 2022.
What is CRAR?
- Applies to business tenancies.
- May not be available if lease has ended.
- Waives forfeiture rights.
- Only for rent (even if inclusive rent).
- Enforcement Agent used.
- Replaced Laws of distress in April 2014.
- Taking Control of Goods Regulations 2013.
- Can be used on sub-tenant.
- Can’t be used on a licence.
- May not apply if rent not certain i.e. turnover rents.
Process of CRAR
- Enforcement agent.
- 7 day notice to tenant before entering - then 12 months to act.
- Enforcement agent must secure, remove or schedule goods to settle debt.
What is a s.17 notice relating to arrears?
L&T Covenants act 1995 - must serve s.17 notice within 6 months from due date to.
Served on former tenant/guarantor
Benefits and drawbacks of CRAR
+ve:
- Can be quick and efficient.
- Limited costs (recovery costs covered by T).
- ve:
1. Waive forfeiture right.
2. 7 day notice allows tenant to remove goods.
