Property Management

Question 1

When was the RICS Real Estate Management effective and what edition?

Answer 1

3rd edition, October 2016

Question 2

what is the purpose of the RICS Real Estate Management?

Answer 2

Outlines principles of fairness and transparency

Question 3

Name some of the 12 principles of the RICS Real Estate Management

Answer 3

1 - Act in an honest, fair, transparent, and professional manner
2- Carry out work with due skill, care, and diligence, and ensure all staff has the necessary skills.
3- Clients are provided with fair and clear terms of business along with details of the complaint handling procedure
4 - Avoid conflicts of interest, where they do arise, and deal with them openly.
5 - not to discriminate unfairly in any dealings
6 - all communication with the client is fair, clear, and timely
7- all marketing material is honest and truthful
8 - client money is held separately and is covered by adequate insurance
9 - Hold appropriate PII cover to ensure the customer does not suffer due to negligence
10 - make clear the identity of your client and ensure all parties are clear of your objectives
11 - realistic assessment of selling prices/ rent and financial costs regarding market evidence
12 - all meetings/ inspections and viewings are carried out in accordance with the client.

Question 4

Name some of the specific advice given in the RICS Real Estate Management

Answer 4

Ethics
Securing Instruction
New letting and lease renewal
managing real estate
Portfolio and asset management
ending an instruction
safety and security
Business management.

Question 5

When was the RICS guidance note on commercial property management
in England and wales effective and what edition?

Answer 5

2nd Edition October 2011

Question 6

what is the purpose of the RICS guidance note on commercial property management 2nd ed Oct 2011

Answer 6

Guide to best practices for commercial property managers
focus on property managers to be efficient, effective, and accountable
The primary duty of care is to the client.

Question 7

What are the key areas covered by RICS guidance note on commercial property management 2nd ed Oct 2011

Answer 7

Rent collection
Service Charge
Managing buildings
Health and Safety
procurement of third-party suppliers

Question 8

what code was released during Covid -19

Answer 8

Code of practice for commercial property relationships during Covid -19 Pandemic

Question 9

Is the Code of practice for commercial property relationships during Covid -19 Pandemic mandatory?

Answer 9

No - Voluntary code published by the UK government in June 2020

Question 10

What are the main principles of Code of practice for commercial property relationships during Covid -19 Pandemic

Answer 10

Transparency and collaboration
unified approach
Government support for businesses
Landlords and tenants work together to resolve issues such as rent arrears and rent reductions

Question 11

what is the aim of the landlord and tenant act 1988?

Answer 11

ensure that a statutory duty exists on the landlord to deal with consents (e.g. alienation) diligently and not to be unreasonably withheld or delayed.

Question 12

What is the landlord and tenant (covenants) act 1995?

Answer 12

Relates to the assignment of leases
came into force 1st January 1996 ( called new leases)
Gave landlords more scope for setting conditions regarding the approval of an assignee
Introduced AGA’s (Authorised Guarantee Agreement)
Section 17 notices must be served upon a guarantor within 6 months of the tenant defaulting to require the former tenant to pay the arrears.

Question 13

What are the two functions of a licence for alterations?

Answer 13

protect parties at rent review and dilapidations at the end of the lease.

Question 14

What is the RICS licence for alterations guidance note 2013

Answer 14

sets out guidance to sureveyors who are dealing with applications from tenants to make alterations to office and industrial properties.

Question 15

What is the importance of the landlord and tenant act 1927?

Answer 15

If a lease prohibits improvements being made to a property without landlord consent, section 19 of the act imposes a priviso that such consent cannot be unreasonably withheld.

Question 16

What are the two choices at lease expiry when dealing with dilapidations?

Answer 16

1) tenant agrees to do the works or

2) tenant can pay a sum to the landlord to undertake the works
Breach + loss+ evidence = recovery

Question 17

When dealing with dilapidations, what notice must be served and under what act?

Answer 17

Section 146 notice must be served in accordance with the 1925 Law of Property Act

Question 18

Dealing with dilapidations what is a claim limited to?

Answer 18

either cost of works or in accordance with Section 18 of the landlord and tenant act 1927.

Question 19

name reasons when dilapidations claim are not agreed?

Answer 19

1) when the lease is not FRI
2) Reinstatement not required by the landlord
3) if a schedule of conditions limits the repairing liability
4) if the building is to be demolished or substantially refurbished after lease expiry
5) use of the diminution in value cap
6) Tenant has gone into administration
7) when it is agreed between the landlord and tenant to roll over the claim until the end of the next lease granted.

Question 20

Who is responsible in arranging Insurance?

Answer 20

usually the landlord, to arrange and re charge the tenants.

Question 21

Usual basis of measurement for building reinstatement valuations?

Answer 21

Gross internal area

Question 22

In rent collection what are the two fundamentals?

Answer 22

Accuracy of information and timing

Question 23

How would commercial landlords remove trespassers?

Answer 23

Reasonable force through certified bailiffs or civil legal proceedings in the county court

Question 24

what is the legal framework regarding insurance?

Answer 24

Insurance act 2016 - the responsibility of the policyholder to provide all relevant information and an aim to reduce claims.

Question 25

What are the usual quarter days for rent collection?

Answer 25

25th March, 24 June, 29th September, and 25th December

Question 26

what are the remedies for rent default?

Answer 26

1 - Court Proceedings
2 - Use a rent deposit
3 - Pursue former tenants and guarantors
4 - Server a statutory demand
5 - commercial rent arrears recovery scheme
6 - Forfeit the lease
7 - Negotiate a payment plan

Question 27

What legislation prevented landlords from collecting rent

Answer 27

Section 82 of the Coronavirus act 2020 prohibited collection of rent between 25th march 2020 and 25 march 2022

Question 28

What is the legislation called regarding repair?

Answer 28

Leasehold property (repairs) act 1938

Question 29

When carrying out dilapidations what are the two choices before expiry

Answer 29

Tenant can do the work
Tenant can pay a sum to the landlord to undertake the work
= Breach + loss + evidence = Recovery

Question 30

what notice must be served when dealing with dilapidations

Answer 30

S146 of the 1925 law of property act.

Question 31

What are dilapidation claims based on

Answer 31

Cost of the works or in accordance with a s18 of the landlord and tenant act 1927
diminution in value of the reversionary interest

Question 32

What are the three forms of schdules regarding dilapidations

Answer 32

Interim schedule - Served by the landlord or tenant during the lease with at least 3 years from expiry

Terminal schedule - normally served in the last 3 years of the lease

Final Schedule - Served at or after the lease expires or break clause date wen the tenant is out of the occupation and the landlord wants to agree a claim for damages

Question 33

What is the format of the schedule?

Answer 33

outline repair obligation
state the remedy and cost of the breach
Loss of rent if appropriate over the period to carry out the works
Fees + Vat for the claim for surveyor and lawyers fees

Question 34

what reasons are there to sublet rather than assign a lease?

Answer 34

1 Requirement of the lease
2 For part of the demise only
3 Of the market rent is higher than the passing rent
4 if the tenant wants to reoccupy in the future
5 new party is of a lesser covenant strength

Question 35

what actions are undertaken when dealing with an application to assign or sublet.

Answer 35

Read the lease
will the tenant give an undertaking of fees
is the proposed rent the market rent or the same as the passing rent?
is there a rent deposit or AGA clause
provide a copy of the report to the client setting out the surveyors recommendations
consent is granted a licence will be required

Question 36

Name some of the key points in the RICS guidance note on Dilapidations 2016.

Answer 36

1) Substanial guidance on diminution valuations
2) Explores suppression - a provision that the landlord can only claim the amount lost because of the tenant’s breach of the lease.
3) Relates to interim and final claims
4) emphasizes the importance of a careful and considered estimate of loss
5) Both parties are to keep to the agreed timescales
6) Parties in dispute are expected to act reasonably and make genuine endeavors to settle.
7) separates the role of a surveyor as advisor prior to litigation and expert witness in any litigation

Question 37

When would a landlord serve a s146 notice

Answer 37

Notice to repair
Forfeiture
Leasehold property (repairs) act 1938

Question 38

what does a Section 146 notice out

Answer 38

1 = Details of the repairing or decorative breach
2 = Timescale allowed for the tenant to remedy the breach
3= course of action proposed if the tenant fails to remedy the breach

Question 39

How would a landlord gain entry to do the works

Answer 39

Jarvis v harris clause which should be used for the following.

when the tenant is solvant
where the landlord wants to rent and lease to continue
the landlord wants to retail control for works to be carries out.
where the threat of re-entry may compel the tenant to carry out the works.

Question 40

when does the Leasehold property (repairs) act 1938 apply

Answer 40

leases granted for 7 or more years with at lease 3 years unexpired
aims to protect tenants from onerous interim schedules of dilapidations
Act requires the landlord to serve a s146 notice