Property Management

Question 1

What is property management all about?

Answer 1

The occupier

Question 2

Name 3 different types of maintenance

Answer 2

1) Reactive - repair emergencies.
2) Planned - regular condition schedule checks.
3) Cost reduction - Utility switching and efficiency bench marking.

Question 3

What certifications are necessary?

Answer 3

• EPC

- H&S Certs e.g. fire safety cert, FWT, gas cert, asbestos management.

Question 4

What considerations ought to be taken for voids/vacant property?

Answer 4

• Empty rates.
• Vandalism.
• Disrepair - Frost, water damage etc.
• Insurance.
• Security.
• Disposal strategy - incentives…

Question 5

When do empty rates apply for office, shops and industrial?

Answer 5

• Office and shops 3 months.

- Industrial - 6 months.

Question 6

What is the 42 day rule?

Answer 6

Property must be occupied for business purposes for 42 days before a grace period can be triggered.

Question 7

What are the 4 Ps?

Answer 7

Price, people, place, promotion.

Question 8

Service charges in Commercial Real Estate 1st edition 2018.

Answer 8

1. Improve standards and best practice.
2. Ensure timely issue of budgets and year-end certificates
3. Reduce dispute and guidance on resolution
4. Provide guidance of SC in negotiation.

Question 9

Resources for benchmarking SC

Answer 9

• OSCAR - JLL.
• International Total Occupancy Cost Code (ITOCC)
• 24 core principles in 2018 SC code.
• Reconciliation.

Question 10

On what basis should property managers arrange insurance?

Answer 10

PM arrange for LL, equivalent reinstatement basis.

Question 11

What is important for Rent collection?

Answer 11

• Accuracy of info.

- Timing.

Question 12

What are penalties for arrears?

Answer 12

• 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.

Question 13

Remedies for non-payment of rent

Answer 13

• Visit property
• Rent deposit
• Guarantor
• Payment Plan
• CRAR
• Statutory demand
• Forfeiture
• Court proceedings

Question 14

What legislation governs insolvency?

Answer 14

Insolvency Act 1986

Question 15

Name 5 types of insolvency

Answer 15

1. Administration
2. Company Voluntary Arrangement (CVA)
3. Receivership.
4. Voluntary liquidation.
5. Bankruptcy

Question 16

Equality Act 2010

Answer 16

Access for disabled, reasonable adjustments to be made.

Question 17

Why do property managers need to be careful with H & S?

Answer 17

Liable under Corporate Manslaughter and Homicide Act 2007.

• Death caused by negligence.
• Unlimited fine.
• Property manager’s role examined.

Question 18

Name 3 types of asbestos

Answer 18

1. Blue - Crocidolite - insulator most harmful
2. Brown - Amosite
3. White - Chrysotile - asbestos cement, least harmful

Question 19

Illness caused by asbestos

Answer 19

Asbestosis

Question 20

Remedies for asbetsos

Answer 20

Encapsulation or removal

Question 21

Air conditioning R22

Answer 21

Refrigerant R22 banned since Jan 2015 - units may need replacement sooner as cannot maintain.

Question 22

Which Act creates responsibility of visitors to a property?

Answer 22

Occupiers Liability Act 1957

Question 23

Which Act creates responsibility of non- visitors to a property?

Answer 23

Occupiers Liability Act 1984

Question 24

What is Code of Practice for commercial property relationships during Covid 19 pandemic?

Answer 24

Contains further advice on SC during pandemic: Accurate, low cost where possible, management fees are accurate etc.

Question 25

RICS GN Commercial Property Management 2nd edition 2011

Answer 25

Low margin area

Customer service important

Question 26

Remedies for Rental Arrears

Answer 26

1. Visit the tenant to understand what is happening.
2. Payment plan.
3. Rent deposit.
4. Guarantor/sub tenant
5. Commercial Rent Arrears Recovery.
6. Forfeiture for non payment of rent.
7. Debt claim (courts).
8. Surrender.
9. Statutory demand.
10. Winding Up petition.
11. Recover from former tenant (pre 1996 leases).

Question 27

The Coronavirus Act 2020

Answer 27

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.

Question 28

What is CRAR?

Answer 28

1. Applies to business tenancies.
2. May not be available if lease has ended.
3. Waives forfeiture rights.
4. Only for rent (even if inclusive rent).
5. Enforcement Agent used.
6. Replaced Laws of distress in April 2014.
7. Taking Control of Goods Regulations 2013.
8. Can be used on sub-tenant.
9. Can’t be used on a licence.
10. May not apply if rent not certain i.e. turnover rents.

Question 29

Process of CRAR

Answer 29

1. Enforcement agent.
2. 7 day notice to tenant before entering - then 12 months to act.
3. Enforcement agent must secure, remove or schedule goods to settle debt.

Question 30

What is a s.17 notice relating to arrears?

Answer 30

L&T Covenants act 1995 - must serve s.17 notice within 6 months from due date to.
Served on former tenant/guarantor

Question 31

Benefits and drawbacks of CRAR

Answer 31

+ve:

1. Can be quick and efficient.
2. Limited costs (recovery costs covered by T).

• ve:
  1. Waive forfeiture right.
  2. 7 day notice allows tenant to remove goods.