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APC GC > Property Management > Flashcards

Property Management Flashcards

1
Q

WHat is the professional statement for property management?

A

RICS Proff Statement on Real Estate Management 2016

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2
Q

What does profesional statement include??

A

12 principles:
-= honest and fair
- dont discriminate
- carry out work with due skill
- try and avoid COI

Provides specific advise:
- ethics - duty of care
managing RE - collection of rent
safety and security

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3
Q

What is the other guidence note?

A

RICS Commercial Property Management 2011

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4
Q

What does the RICS commercial property management 2011 state?

A

States how managers cam be effective, efficient and accountable
a guide to best practice
duty of care to the LL/ client
gives advise on rent collection, SC and managing buildings

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5
Q

What is the statement on Service charges?

A

RICS professional statement on service charges in commercial property 2018

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6
Q

What does RICS professional statement on service charges in commercial property 2018 state?

A

aims to promote best practise, fairness and transparency

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7
Q

what does the SC professional statement ensure? two things and how many principles

A

ensures budgets are sent out annually
apportionment schedules are sent out annually
9 principles

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8
Q

what are the 4 ways to apportion a schedule?

A
  • fixed percentage
  • rateable value
  • floor area
  • weighted floor area
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9
Q

Talk me through your balancing SC example

A
  • received an invoice for balancing SC
  • requested the recon report
  • asked the LL as to why there had been a significant increase in costs compared to the previous year?
  • requested a breakdown of the costs
  • apportionment schedule was wrong.
  • requested an up to date schedule
    new schedule was correct and I approved the invoice.
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10
Q

Talk me through the break option you dealt with?

A
  • client wanted to serve their break notice.
  • providing not less than 3 months written notice.
  • reviewed the break terms in the lease
  • must pay full quarters rent and SC
  • I made sure that the stepped rental increase was accounted for
  • following solicitors advice, I also advised that a SC contingency payment is made
  • LL refunded the money and the break clause was exercised.
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11
Q

What are the quartely payment dates

A

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

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12
Q

Talk me through your sub-tenant arrears log

A
  • property was sub-let
  • requested arrears log from our accounts team
  • T was paying incorrect amount following a RR increase
  • provided a SOA to the tenant
  • established what legal action could be taken against the sub tenant
  • there was no rent deposit
  • recommended a payment plan to pay back the money over a 3 month period
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13
Q

What is alienation?

A

When a tenant can assign or sub-let a lease

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14
Q

What are the main reasons to sub-let over assign?

A
  • requirement of the lease
  • to sub-let part of the demise and not the whole
  • if the tenant wants to re-occupy in the future
  • if MR is greater than the PR = profit.
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15
Q

Talk to me about rent arrears?

A

always read the lease
interest is normally between 2-4% - 7-14 days following rent payment date
always seek legal advice

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16
Q

What are the ways to recover the rent and talk about each?

A
  • rent deposit
  • court proceedings - costly, timely, usually scares them into paying
  • approach the guarantor or former tenant - check if AGA is in place
  • Commercial Rent Arrears Recovery Scheme - enforcement agents can enter and take possessions and sell them. Certain time frames.
  • Forfeiture - landlord can repossess the property, and peacefully re enter the property or court proceedings. procedure must be followed and relief offered to the tenant.
17
Q

What lease events are important to property managers?

A
  • rent terms
  • break clauses
  • Service charge clauses
  • Repairs
18
Q

I see you are aware of the commercial property management guidence note 2015, can you state how you use this?

A

I have never had to refer to the guidence not, but I believe it is there so that managers can be efficient, effective.

Gives guidance on managing buildings, rent collection and service charges

19
Q

What remedies did you have for your sub-tenant arrears?

A
  • I installed a payment plan with the sub-tenant having agreed with the client.
  • Other options include; rent deposit taking, taking money from guarentor, CRARS, forfeiture, court proceedings.

No deposit for the property.

20
Q

What was the repairing liability of your building with the leak?

A

IRI lease

21
Q

what is an effective FRI lease?

A

Liable for repairs on the whole property as stated in the lease. But the tenant pays the LL a service charge.

22
Q

What happens when you get the money for client accounts?

A

client accounts must be kept separately
the word client must be listed on the bank account
clients must have their money on demand
annual audit and reporting obligations by certified accountant

23
Q

is the professional statement on handling clients money?

A

RICS proff statement on client money handling 2019

24
Q

What are the six main areas set out in the professional statement for client money?

A
  • holding client money
  • providing info to clients
  • receipts of client money
  • payments from client accounts
  • accounting records and controls
  • compliance
25
Q

talk me through the leak you dealt with?

A
  • informed of a leak coming from the roof by the client
  • requested info and pictures of the leak
  • advised client to send out an engineer to assess where the leak was coming from.
  • checked the lease and confirmed that the roof was not within our demise as it was an IRI lease.
  • damage to our carpets. lease also stated that LL responsible to repair any damage caused by a landlords insured risk
  • I said the client will want a rent reduction if the terms of the lease are not complied with.
  • landlord accepted and provided a schedule of works to sort the leak and replace the carpets.
  • No SC on the property
    IRI lease.
26
Q

What is CDM?

A

Construction design and management regulations 2015

27
Q

What does CDM involve?

A

policed by HSE. criminal offence to breach CDM regs.
aims to improve the management and co-ordination of H&S.
Must have a principle designer on site - in charge
Onus is on the client not the contractor.
Need for a risk assessment
required for all commercial building projects, including residential development and refurbishment and maintenance work for both.

28
Q

Landlord and tenant act 1988

A

relevant for alienation clause.

Landlord must not unreasonably withhold consent.

29
Q

What section must be served for dilapodations ?

A

Section 146

30
Q

What are some of the 9 principles of the professional statement on service charges>

A
  • all expenditure that the owner / manager seeks to recover must be in accordance with the terms of the lease
  • owners and managers must make sure that service charge budgets including commentary is sent to the tenant annually.
  • owners and managers must make sure that the service charge apportionment matrix for their property is provided annually to all tenants.
31
Q

Examples of proactive prop man

A

regular inspections
good L&T relationships.

32
Q

What stautory regulations must you look out for when managing a property for a LL.

A

equality act
fire safety regs
abestos register
general H&S regs

33
Q

For your sub-tenant arrears, was there interest charged?

A

Interest was not charged as the client wanted to maintain the relationship with the sub-tenant.

34
Q

What case law are you are of with regards to a break condition?

A

BNP Paribas vs M&S

This involved the conditions of the break where the tenant paid the full quarters rent. This held that the LL was not liable to pay back the rent as it was not expressly stated within the lease.

35
Q

As a property manager, what should you do with a vacant property?

A

maintain the building
arrange appropriate security
inform the building insurer
apply for empty rates relief

APC GC (18 decks)

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