Property Management

Question 1

What is relevant legislation related to property management?

Answer 1

• H&S legislation
• Defective Premises Act 1972
• Occupiers Liability Acts 1957 & 1984
• Corporate Manslaughter and Homicide Act 2007
• L&T Acts
• Equality Act 2010
• TUPE Regs 2006
• EPC & MEES Regs
• GDPR

Question 2

What is legislation related to health and safety when managing property?

Answer 2

• Defective Premises Act 1972
• Corporate Manslaughter Act 2007
• Occupiers Liability Acts 1957 & 1984
• H&S at Work Act 1974 (& Regs 1999)
• Water Fittings Regs 1999
• Electricity at Work Regs 1989
• Gas Safety Regs 1998
• Control of Asbestos Regs 2006
• Fire Safety Order 2005
• CDM 2015
• Lifting Equipment Regs 1998

Question 3

Commercial Property Management GN 2011

NEED TO ADD DATE AND EFFECTIVE DATE

Answer 3

• key principles, core duties, property manager & LL responsibilities, employment law, specialist issues, relevant legislation
• acting as agent, managing suppliers, duty of care
• reporting with LL, collecting monies, client accounts, S/C, management policies, occupier liaison, H&S, insurance
• letting agency, L&T matters
• provide property and occupier info
• TUPE
• managing portfolio, mixed dev use

Question 4

Real Estate Management PS 2016

NEED TO ADD DATE AND EFFECTIVE DATE

Answer 4

• ethics, securing instructions, new lettings & LRs, managing real estate, portfolio & asset man, ending the instruction, safety & security, business man
• duty of care, conflicts of interest
• ToE, sub-agents
• rent, repairs, insurance, S/C, alterations, assignments, breaches, sustainability, disputes, terminations
• written confirmation, invoice, handover docs
• confidentiality, data protection, H&S
• advertising services, complaints, handling money, recovering debts, insurance, training

Question 5

Real Estate Management PS 2016 & Commercial Property Management GN 2011 communicating with occupiers

Answer 5

• day to day tenant liaison, be contactable (regular contact, emergency contact)
• HoTs should seek to promote flexibility, stating whether alternative terms are available and providing different rents for different terms if requested
• provide estimates of likely outgoings inc service charge
• don’t interfere with T’s peace
• don’t disclose personal info without consent
• policy for disputes and complaints

Question 6

Real Estate Management PS 2016 & Commercial Property Management GN 2011 communicating with LLs

Answer 6

• achieve defined objectives agreed with client on instruction
• prop man contract, ToE
• core duties inc identity of properties, liability, termination, frequency of reporting, sub-agents
• must disclose conflicts of interest
• bring breaches to clients’ attention asap
• if asset man, portfolio strategy and performance measurement
• may also need to communicate with third party suppliers and employees (TUPE)

Question 7

How would you deal with LL consent to carry out alterations?

Answer 7

• get request in writing with relevant info/plans
• check lease, consent not to be unreasonably withheld?
• check whether superior LL/T consent required, tripartite?
• cost undertaking whether licence completes or not
• consult with bdg/mechanical surveyors
• if improvement will increase rental value, consider s3 LTA 27
• consider impact on bdg operations inc sprinklers
• requires planning/bdg regs approval?
• seek approval from insurer if needed
• check qualified contractors and works carried out well
• consult client for decision, formal licence deed or letter licence?

Question 8

How do you manage service charges?

NEED TO ADD RICS GUIDANCE DOC & DATE AND EFFECTIVE DATE

Answer 8

• ratio premises bear to lettable parts of bdg/estate
• all expenditure recovered must be in line with lease terms
• must recover no more than 100% of actual costs
• must issue annually: S/C budget, S/C accounts, apportionment matrix
• S/C monies inc reserve/sinking funds must be held separately
• interest earned must be credited to S/C account
• appendix compliance checklist
• sinking fund related to specifically identified expenditure
• owners to make all payments for void premises
• costs allocated to relevant expenditure category/schedule (who benefits)
• communicate with occupiers, value for money
• independent review of accounts
• be clear if utilities/insurance separate (meter)

Question 9

How would you communicate with tenants around service charge?

Answer 9

• communication with occupiers to ensure services delivered effectively (regular meetings)
• ensure occupiers understand what they can expect to receive and how much required to pay
• give occupiers copy of management policy
• S/C budgets and approved set of S/C accounts and a S/C apportionment matrix must be provided annually to all tenants