Property Management

Question 1

What steps can be taken if a tenant cant pay rent?

Answer 1

1. Make contact and arrange meeting at premises
2. See if business is still trading
3. Check if there is a rent deposit that can draw from
4. Check lease for guarantor. If there is Section 17 notice under L&T Covenant’s Act 1995
5. 7 day notice Statutory demand - Commercial Rent Arrears Recovery (CRAR)
6. Bailiffs seize non perishable items of worth. Cant take stuff on hire purchase. Cannot forcibly enter.
7. Forfeiture clause in lease? serve a Section 146 notice under Law of Property Act 1925. For the non payment of rent usually 21 days and can take walk in possession and change locks ect.

Question 2

What is the RICS note for Service Charges?

Answer 2

Service Charges in Commercial property 2018

Question 3

What type of notice can be used to pursue a former tenant or guarantor?

Answer 3

Section 17 - Landlord & Tenant (Covenants) Act 1995

Question 4

Can forfeiture be implied?

Answer 4

No - it must be an express provision in a lease

Question 5

What RICS guidance relates to service charges?

Answer 5

Service charges in commercial property, professional statement - 1st edition (September 2018) - effective from 1 April 2019

Question 6

What is the main change in the new Service charges in commercial property professional statement?

Answer 6

Mandatory not just best practice

Question 7

What should service charges be?

Answer 7

Not for profit, not for loss

Question 8

What is the purpose of a sinking fund?

Answer 8

To periodically set aside money for the replacement of a wasting asset

Question 9

When did the Landlord & Tenant (Covenants) Act 1995 come into force?

Answer 9

1 January 1996

Question 10

What did the Landlord & Tenant (Covenants) Act 1995 abolish?

Answer 10

Privity of contract