Property Management

Question 1

What guidance is there for property management?

Answer 1

• Commercial property management in England and wales 2011
• Real Estate management 2016
• Service charges in Commercial Property 2018

Question 2

What is the professional statement called for services charges?

Answer 2

Service charges in commercial property 2018

Question 3

What is a property manager

Answer 3

Deals with the day to day management of a property portfolio, deals with the tenants and maintains the L&T relationship

Question 4

What is an Assets Manager

Answer 4

Deals with strategy of the property, how you can add value

Question 5

What is a facilities manager

Answer 5

Looks after the building itself including reactive and proactive maintenance

Question 6

What are the forms of dilapidation schedules?

Answer 6

Interim
Terminal
Final

Question 7

What does the Landlord and Tenant 1927 Act Deal with?

Answer 7

Dilapidations and improvements

Question 8

What are the 9 principles for service charges?

Answer 8

1 - Only seek to recover what is in the lease.
2- Must not recover more than 100%
3- Service charge budgets must be issued annually
4- service charge accounts to be issued annually
5- An apportionment matrix must be provided
6- Service charge money must be held in a separate account
7- interest earned on accounts must be credited to the account
8- Any service charge held during a dispute must only reflect the disputed amount
9- Any service charge which has been raised incorrectly should be adjusted to reflect the error without u due delay

Question 9

What is a Jervis v Harris Clause?

Answer 9

It allows the landlord to serve a notice on the tenant to carry out repairs

If the tenant doesn’t carry out the works, the landlord may enter and do the work and recover the costs from the tenant as a form of debt

Question 10

What is a Jervis v Harris Clause?

Answer 10

A clause which allows the landlord to serve a notice on the tenant to carry out repairs. If the tenant does not carry out the works, the landlord can enter and do the works and recover from the tenant as a form of debt.

Question 11

What can you do if a tenant leaves goods behind?

Answer 11

Service a formal notice under schedule 1 of the Torts ( interference with goods) Act 1977. This requires the tenant to remove the goods within a given time period.

Question 12

What happens if the tenant does remove them?

Answer 12

Then you can get rid of the goods or sell them, and deduct the costs of storing the goods from the money made.

Question 13

Timeline for CRAR?

Answer 13

• if rent is unpaid for 7 days you can CRAR
• 7 Days notice required
• Enforcement officer visits site

Question 14

What is section 17 of the Landlord and Tenant ( Covenants Act) 1995

Answer 14

The landlord must make the guarantor/ previous tenants within 6 months of the current tenant falling into arrears

Question 15

What is section 6 of the law of distraint amendment act?

Answer 15

The landlord can serve notice on sub tenants to ensure the tenant is in arrears and the subtenant needs to pay the landlord directly

Question 16

What is a sinking fund?

Answer 16

Cover costs which occur occasionally over the lifetime of an asset eg replacing a roof, a lift etc

Question 17

What is a reserve fund?

Answer 17

Where expenditure is built up for items which may occur often and an there is an unexpected shortfall

Question 18

Three forms of dilapidations schedule and when are they used?

Answer 18

1- Interim - served with 3 or more years remaining
2- Terminal - served within the last 3 months
3- final - when or after expiry when the tenant has left.

Question 19

Why would a settlement not be agreed?

Answer 19

• tenant not on FRI
• reinstatement not required
• Roll over on lease renewal
• tenant goes into administration
• there is a SOC

Question 20

what is the commercial rent ( coronavirus) act 2022?

Answer 20

Introduced an arbitration process to resolve disputes regarding Covid arrears

Question 21

What is reactive maintenance

Answer 21

When an asset or something has failed and work is required to make it work again

Question 22

What can you do if a tenant has repaired something in their demise?

Answer 22

1 - Serve a repair notice under section 146 of the Law of Property Act 1925
2- Forfeiture - serve a section 146
3- Serve a terminal or interim schedule of dilapidations
4- Landlord carry out the works themselves ( only if Jervis v Harris clause)

Question 23

What is a Jervis v Harris clause?

Answer 23

A clause within a lease which allows the landlord to carry out repair work and charge the tenant as a firm of debt

Question 24

What is proactive maintenance?

Answer 24

Work carried out before something failures, breaks etc

Question 25

What is yielding up?

Answer 25

Sets out how you need to return the property when vacating

Question 26

What does vacant possession mean?

Answer 26

The landlord can take beneficial occupation straight away

Question 27

What do you need to ensure when you have a empty building?

Answer 27

Inform insurers
Carry our vacant property inspection ( record)
drain down all systems
Inform local authority
Commission a fire risk assessment

Question 28

What is the the sim of the service charge in commercial property?

Answer 28

Reducing the aim of disputes

Question 29

What is the regulatory reform ( fire safety) order 2005?

Answer 29

applies to non-domestic property, there is a responsible person of a property, could be the owner is vacant or employer or both.

The property must have a risk assessment, fire detection, warning alarm system, emergency lighting, evacuation plan and signage

Question 30

What part of the building regs cover fire?

Answer 30

Part B