Property Management Flashcards
Tell me about your responsibilities for occupied buildings.
Split into the property management and block management.
Property management covers: advertising rental properties, carrying, out viewings, choosing tenants, check in appointments, rent collection, inspections, ensuring statutory compliance, dispute resolution, managing work orders for repairs and maintenance, sending termination notices, arranging BER inspections, and dealing with both the tenants and landlords.
Block management covers: This included planned works and reactive works. Planned works included service charge collection, planned upgrades, cleaning staff, invoice management, routine inspections, servicing of lifts, fire safety equipment, AOV shafts and preparation for the Annual General Meeting. Reactive works included plumbing issues,
electrical faults, anti-social behaviour and liaising with contractors on gathering quotes, instructing works, inspecting works completed and managing invoice payments.
Tell me about your responsibilities for vacant buildings.
Property Manager duties:
1) carrying out regular vacant property inspections, including a health and safety and a fire risk assessment
2) draining and capping or turning off central services, with frost controls applied in the winter months
3) activating and monitoring fire and security alarms, potentially including CCTV
4) arranging security patrols
5) securing and boarding up the building
6) repairing and maintaining the property in good condition on an ongoing basis, including regular servicing of plant and equipment
7) clearing the premises of combustible material and sealing the letterbox to minimise risk of arson.
8) Ensuring the insurance company is notified that the property is vacant and policy should reflect this.
Tell me about your responsibilities for communal areas.
As a landlord representative, I am not responsible for the maintenance of the common areas. If I see a defect that needs to be investigated/ repaired, I report it to the management company/ managing agent.
As a block manager, I was responsible for maintaining and managing all commons areas. The OMC also administers and delivers all the estate services such as waste management, lighting, landscaping, cleaning and fire safety programmes.
What is public liability insurance?
Public Liability insurance provides indemnity for claims by the public for injury, loss or damage to property, which occurs as a result of your business activities.
How do you ensure that insurance cover is appropriate?
Adequate Insurance means insurance covering, at a minimum, losses of 80 percent of replacement value.
Use the Society of Chartered Surveyors Guide to House Rebuilding Costs for Insurance Purposes
What is a common area?
All the non-privately owned areas are known as common areas, e.g. the structures, building façades, roofs, hallways, stairwells, car parks together with the various machinery and plant within the buildings including the pedestrian and vehicular gates, lifts, fire safety systems, intercoms etc. are maintained and managed by the OMC. The common areas vary in every development but the lease should outline them.
What are the issues associated with lack of insurance?
Financial position after damage/ loss.
Often required with mortgage lender.
Why is insurance important?
Insurance is a financial safety net, helping occupiers after something bad happens — such as a fire, theft, lawsuit or car accident. … Suffering a loss without insurance can put you in a difficult financial situation.
Why is effective occupier liaison important?
It is important to have a key point of contact for each rental tenancy. By having one clear occupier liaison, information is not duplicated and there is one clear line of communication. Less room for dispute.
Tell me about the role of property managers in relation to energy management.
Energy management typically refers to strategies that help reduce the amount of energy used. For property managers, energy management does more than just help the planet. It also reduces costs and attracts tenants.
- Dedicate time to create an energy programme
- Identify where improvements can be made
- Implement POA to make improvements.
- Motivate residents via awareness.
Examples:
Turn off the lights when there is enough daylight.
Educate your residents on energy use, including other points on this list.
Create an energy team (which could be from residents in your building).
Reward behaviors that are energy-efficient.
What is a BMS?
A Building Management System (BMS) monitors, supervises, controls and reports on smart building technology systems. These systems may include access control, video surveillance, fire alarms, HVAC control, programmable lighting and electric power management. It can help to reduce energy and maintenance costs by maintaining building temperatures within a specified range, lighting rooms.
As a property manager, what are your fire safety obligations?
Fire safety is an essential element of any Multi-Unit Development. The MUD Act requires that, in the case of new developments, the developer must provide a certificate from a suitably qualified person (as prescribed) confirming that the relevant parts of the common areas as built comply with the fire safety certificate. This new form of certificate is welcome and ought to ensure that the development complies with the fire safety requirement before any purchaser takes up occupation. Thereafter, the OMC is responsible to ensure Fire Safety Management is in place and compliant.
A Fire Safety Register should include the installation/commissioning certificates (which should have been provided by the developer) and thereafter must be maintained and kept up to date by the OMC. A site log book should record servicing and incident history for the building fire safety systems including the fire alarm, emergency lighting, extinguishers and smoke ventilation systems to
comply with fire safety legislation . Furthermore the fire safety signage in the building should be adequate in terms of indicating locations for fire points and exits etc.
The fire safety systems and maintenance arrangements in place must now be confirmed annually to the members /owners as part of the Directorsʼ Annual Report for the OMC.
Are there any specific issues relating to management of a property portfolio in your role?
1) Problematic tenants
2) Work order system with general contractor
3) Public preception
What do you think of mixed use developments?
Mixed-use developments work well for occupants and tie in with sustainable urban design. Multi-purpose buildings/ areas take up less space on the ground, leaving more for green spaces and communal services
How do you ensure good management of mixed use developments?
Avoid Fragmentation where possible - use one management system for resi and comm.
Create systems for reporting issues, contacting managing agent etc.
Log everthing on the CRM and develop procedures for good management.
What are the two tests for corporate insolvency?
The balance sheet test
The cash flow test.
What are the consequences of insolvency?
For limited companies, the consequences of insolvency will mean that the business will go into liquidation and stop trading or go into administration and be sold (maybe to a new owner). In some cases the outcome may be a company voluntary arrangement.
What is receivership/CVA/liquidation? How do these differ?
Receivership - is a court-appointed tool that can assist creditors to recover funds in default and can help troubled companies to avoid bankruptcy. … In a receivership, the court appoints an independent “receiver”—or trustee—who effectively manages all aspects of a troubled company’s business.
CVA (Company Volumtary Arrangement) - A CVA is a legally binding agreement with your company’s creditors to allow a proportion of its debts to be paid back over time. The company can carry on trading as usual. The CVA is monitored by a supervisor who has to be a licensed insolvency practitioner. The arrangement usually lasts for 3-5 years.
Liquidation - This is the process of bringing a business to an end and distributing its assets to claimants.The company is insolvent, meaning it cannot pay its obligations when they are due, and the company must cease operations.
How would you deal with property block management in the case of tenant insolvency?
Refer to MUD Act 2011 and look for legal advice.
I would make the OMC aware that service charges levied under the Multi-Unit Developments Act 2011
are excluded debt under the Personal Insolvencies Act 2012. In this regard the OMC must confirm excludable
within 21 days of receipt of a Debt Relief Notice in the Personal Insolvency arrangement of a unit owner
whether to exclude the debt or not.
What are 3 of the key principles of RICS Real Estate Management, 2016?
As a basis, you should ensure that you:
• Do not do anything likely to interfere with the peace or comfort of tenants, or withdraw or withhold services reasonably required for the occupation of the premises with the intent of causing the tenants to give up possession.
• Have policies and procedures for responding to incidents of harassment from any parties
• Have effective and fair policies and procedures for dealing responsibly with management matters
• Contactable by phone during business hours/ to meet tenants/ 24hr emergency point of contact.
• Keep building records.
What are the requirements under the RICS REM guidance for rent demands/rent arrears?
Rent arrears: Have efficient system in place to minitor incoming rents. Standard rent demand letters are issued. Communicate promptly. Keep client informed.
Rent demands: Submit rent demands in a timely manner, clear and easily undrstandable.
What is PPM?
Planned preventative maintenance (PPM): a PPM strategy is essential to ensure that building maintenance and repair tasks are scheduled ahead of time and carried out regularly. This can help to avoid reactive maintenance and the premature deterioration of building fabric and services.
Why is PPM beneficial?
Lengthen asset lifespan. Arguably, the most important benefit of preventive maintenance is lengthened lifespan of assets. ... Lower risk of breakdowns. ... Increase efficiency. ... Decrease unplanned downtime. ... Promote health and safety. ... Boost customer satisfaction. ... Save money.
What is the difference between an insured and uninsured risk? Give examples of both.
Insured risk = Landlord has insurance against this e.g. building insurance
Uninsured risk = tenant is responsible for fixing the damage. E.g. contents / re: building. Flood risk
How can you protect the security of client’s money?
- Make time each month to reconcile your financial accounts.
- If a client requests money by email, call to confirm.
What requirements do RICS place on firms holding client’s money?
Firms must read the Professional Statement on Client Money Handling and take steps to ensure that they comply with the requirements.
The key principle is to ensure that clients’ money (not solely belonging to the firm holding it) is kept safely, securely and can be clearly linked to the client at all times.
What is the RICS Money Protection Scheme?
Only in UK. RICS provides protection on client’s money in certain circumstances.
What is an annual return?
RICS Regulated Firms and Registered Valuers are required to complete a regulatory annual return to assists RICS Regulation in risk assessing our firms and practising valuers.
What is a regulatory review?
RICS Regulatory Reviews are a compliance tool designed to educate and assist RICS professionals and firms in improving their work and complying with RICS standards, including Red Book
What happens if you have surplus money in a client account that is not claimed after 6 years?
Hold surplus money for at least six years. If, after six years, the client/ owner of the money has not been found and no true claimants to the money have come forward, in accordance with RICS guidance, it will be donated to a registered charity.
What is a key issue relating to holding client’s money?
Reconciliations between client account and current account. The reconciled cash book balance may not be reconciled to the total of the client ledger balances. Result? a firm may not have an accurate accounting record or be able to identify discrepancies timeously.
What is a reconciliation?
The process of reconciliation ensures the accuracy and validity of financial information. Also, a proper reconciliation process ensures that unauthorized changes have not occurred to transactions during processing.
What controls should be in place relating to holding client’s money?
As per RICS Client Money Handling 2019, RICS-regulated firms must:
1) keep records and accounts that show all dealings with the client money
2) demonstrate that all client money held by the firm is held in a client money account
3) have appropriate systems/ procedures to ensure payments in/ out of a client account are in line with client instruction.
4) complete regular client bank account reconciliations and reviewed by or senior staff member of the RICS firm.
5) Written procedures for handling client money on the firm’s website, sent to RICS, and to anyone who may require a copy free of charge.
6) ensure that overdrawn balances are prevented by the firm’s systems and controls, and if these do occur investigate and rectify them immediately.
7) control and protect accounting systems and client data and adequately protect computer systems for access, firewalls, back-ups and disaster recovery.
8) RICS firm must have exclusive control over the bank account.
What should contractors have when working on site?
Workers compensation insurance
Tell me about inventory preparation in your role.
To avoid issues at the end of the tenancy, I prepared an inventory and schedule of condition of all items in the property.
The inventory included photos of all items in the unit, showing their condition at the commencement of the lease.
condition and cleanliness of the property. I took the photos at the check in appt in front of the tenant, and sent full photograph list by email the following day. Sometimes the tenants would revert to add that a certain item was damaged and it should be noted. In that case, I updated the inventory list and resent.
It is difficult for a landlord to prove any claim against the tenant’s deposit without a reliable inventory and
schedule of condition taken at the start and end of the tenancy.
Tell me about residential tenure and the different forms it takes. How do these forms differ?
Owner occupier Tenancy Commonhold Public Housing Squatting Land trust
What us freehold v leasehold title?
Freehold (own all of the land outright) and Leasehold (own the building but not the landlord, for a fixed period of time).
Does the tenant need to be given the landlord’s name and address for serving notices?
No. It must be signed by the landlord or the authorised agent. Contact details.
Who holds the deposit and how is interest dealt with?
Generally, the landlord holds the deposit and it is agreed with the client at the point of instruction whether the landlord can keep the accrued interest.
What details do you provide to tenants about day-to-day property management?
Keys, fobs, bin room, meter readings, parking, heating and water, house rules, contact details for block manager and agent.
What legislation do you have to comply with which is specific to residential property?
- Property Services (Regulation) Act 2011.
- Residential Tenancies Act 2004 As Amended 2010,2019,2021.
- Criminal Justice (Money Laundering and Terrorist Financing) Act 2010
- Multi Unit Development Act 2011
- The Housing (Standards for Rented Houses) Regulations 2019.
- Equality Act 2010
- Safety, Health & Welfare at Work Act 2005
- Arbitration Act 2010
- Equal Status Act 2000 - 2018
- Employment Equality Acts 1998–2015.
- Companies Act 2014
What must be included on rent demands?
Specify the date of the notice itself
Be signed by the landlord (or an authorised agent)
Specify the date of termination of the tenancy
Name of tenant
Name of rental property address
RTB registration number
Current rent
Rent arrears amount
Notice that failure to pay within 28 days will result in termination as per RTA 2004.
State that any issue as to the validity of the notice or the right of the landlord to serve it must be referred to the RTB within 28 days from the receipt of the notice.
- The RTB provides sample notices of termination, giving the details required in each situation.
