Property Management Flashcards

1
Q

Can you talk me through the Repairing Standard (Housing) (Scotland) Act 2006 and how it impacts Scottish Residential lettings?

A

The Housing (Scotland) Act 2006 introduced a repairing standard that all properties let in the private sector must meet. On 1 December 2015 the repairing standard was updated to include specific measures for electrical safety, and fire and carbon monoxide detection

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2
Q

Can you talk me through the Private Housing (Tenancies) (Scotland) Act 2016 and how it impacts Scottish Residential lettings?

A

The Private Housing (Tenancies) (Scotland) Act 2016 commenced on 1 December 2017 and introduced the new ‘private residential tenancy’.

Its purpose is to improve security, stability and predictability for you as a tenant and provide safeguards for landlords, lenders and investors

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3
Q

What regulations govern private water supplies in Scotland?

A

Water Intended for Human Consumption (Private
Supplies) (Scotland) Regulations 2017

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4
Q

What are the key regulations included in the Water Intended for Human Consumption (Private Supplies) (Scotland) Regulations 2017?

A

Regulations govern the quality of water supplied to private water supplies. Covers the register of supply systems, risk assessment of water supplies and water quality standards and duties.

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5
Q

How do the fire alarm regulations 2022 impact residential lets?

A

One smoke alarm in the living room or the room you use the most
One smoke alarm in every hallway or landing
One heat alarm in the kitchen
All smoke and heat alarms must be mounted on the ceiling and be interlinked.

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6
Q

What is an EPC?

A

Energy Performance Certificate rates a property’s energy efficiency from A (most efficient) to G (least efficient), influencing potential energy costs and environmental impacts

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7
Q

How often do EPC’s need to be carried out?

A

Every 10 years

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8
Q

What is included in an EPC?

A

They assess elements like insulation, heating systems, and windows. Recommendations are given to improve a property’s energy usage.

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9
Q

Why are EPCs important?

A

EPCs are legally required when selling or renting properties in the UK, providing essential information on energy performance to prospective buyers or tenants

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10
Q

Name a legislation that is impacting the Rural Residential letting market right now?

A

Uncertainty over EPCs previous plans by the Scottish Government have currently been scrapped for EPC rating of C for all private rental properties by 2028.

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11
Q

What sort of documents do you request from a contractor before entering a property for works?

A

Insurance, any certificates required and risk assessment

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12
Q

What is an EICR?

A

Electrical Installation Condition Report

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13
Q

How often do you need to carry out an EICR? Why are they necessary?

A

Every 5 years or at a change of tenancy

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14
Q

You mention following a storm you were renovating a property and suggested improvements to the EPC what were these suggestions? Why did you make these suggestions?

A

Internal wall insulation as this was highlighting as a recommendation in the EPC certificate. This was recommended as contractors were already exposing the inner walls carrying out repair works.

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15
Q

You mention taking a property back in hand what were the pros and cons of a PRT?

A

Pros:
Can vet the tenants before offering them a tenancy
Potential long term rental income due to an open ended tenancy
Cons:
Increased costs of getting property let (renovations and EPC and EICR)
Potential for tenants to leave so not as secure of long term income

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15
Q

You mention taking a property back in hand what were the pros and cons of a holiday let?

A

Pros:
Potential higher income that you would receive from a PRT
More control = can set when you wish guests to be in the property or not
Cons:
Need to obtain a short term let licence governed by the local council
Increased management and costs of change over with guests and cleaning

16
Q

You mention taking a property back in hand what were the pros and cons of selling the property?

A

Pros:
Income received from the property can be used elsewhere on the estate
No longer have the management obligations of the property
Cons:
Lose control of who has the property if they chose to sell on

17
Q

Lead in residential properties are governed by which new legislation?

A

Repairing Standard require landlords to ensure that from 1 March 2024 the water supply in their private rented properties is free of lead.

18
Q

You mentioned a property with lead in it how was this identified?

A

This was identified during council water testing.

19
Q

What is process of switching a property to a mains supply?

A

Application to Scottish Water

20
Q

Do you have another example of where you met level 3 in property management?

A

Drumin Smiddy- contractor had provided sub standard decoration works and the process to rectify this

21
Q

How are responsibilities split between a landlord and a tenant in a regulated tenancy, an SAT and a PRT?

A

All tenanted properties in Scotland are now required to achieve both the tolerable and repairing standard and it is the landlords responsibility to ensure this. However, tenants responsibilities include reporting maintenance issues in a timely manner and allowing access for maintenance.

22
Q

What are the EICR requirements for agricultural tenancies?

A

For any new leases, the landlord is required to have an EICR done on both the buildings and the house. The tenant then has the responsibility of having that updated every 3 years for the buildings and every 5 years for the house.

23
Q

Are you aware of any changes to compliance of residential dwellings within agricultural tenancies?

A

By February 2022, landlords were required to install smoke detectors, heat detectors and carbon monoxide detectors in residential dwellings under agricultural tenancies in Scotland.

24
Q

A property will comply with the repairing standards if it is…

A

it meets the tolerable standard

it is wind and watertight and reasonably fit for human habitation

it is structurally and externally in a reasonable state of repair and in good working order

it has a fixed heating system that is plumbed in or hardwired

the installations for the supply of water, gas, electricity (including residual current devices), and any other type of fuel, for sanitation, heating and hot water are in a reasonable state of repair and in good working order

it is free of lead pipes from the boundary stopcock to the kitchen tap

any fittings, fixtures or appliances supplied by the landlord as part of the tenancy are in good working order

any furniture provided by the landlord can be used safely for the purpose for which it was designed

there is satisfactory provision for and convenient access to spaces for food storage and food preparation

common parts can be safely accessed and used

common doors are secure and fitted with satisfactory emergency exit locks

25
Q

You were involved in renovating a property following Storm Arwen, what kind of works were required here? Was this within your skill set?

A

Flood damage, stripping the floor back to the floor boards on the entire ground floor
New kitchen
New bathroom
I liaised with the estate team who have specific skill sets surrounding joinery and construction
I also discussed with an architect and building surveyor which created a design plan for the works to be carried out and could be passed on to external contractors needed
I also verified these plans with our internal building surveyor along with the contractor quotes to see if these were of good value

26
Q

Can you talk me through the CDM regulations and how you fulfilled these with this renovation?

A

CDM regulations 2015 place specific responsibilities on duty holders, including designers and contractors, and make them accountable for the consideration and management of health and safety in construction work
Upon instruction of contractors our firm has a CDM letter which can be filled out and sent to the contractors
Within this letter it includes a clear description of the works agreed, details of local emergency services

27
Q

You also advised they could use this opportunity to install insulation, can you tell me about any proposed changes to legislation which may make this compulsory?

A

The Scottish Government’s proposed minimum EPC requirement for private residential lets

28
Q

You advised an estate on whether to let or sell their gate lodge and the pros and cons of each, can you please tell me what advice you provided on the pros and cons of holiday letting?

A

The advice I provided was to redecorate the property and re-let the property unfurnished under a PRT
Holiday let pros:
Higher rate of income as rate per night is far higher than a PRT
The client can stipulate times when they wish to have guests
Holiday let cons:
The property would require to be furnished (extra expenditure added to the redecoration works)
Would need to a short term licence which is governed by the local council
Increased management of the property (change overs between stays)

29
Q

You re-let a property after getting it back in a state of disrepair – did you withhold the existing tenants deposit?

A

Yes it was agreed between both the landlord and tenant that a 50% reduction would be made

30
Q

You carried out the end of tenancy inspection, can you list the things you would look to check here?

A

Meter readings
General cleanliness of the property
Noting any works which would need to be required before re- letting
Any items which the tenants are still required to be removed
Check for any damage to the property

31
Q

You arranged for a private water supply test to be done for lead pipes, how often should private water supplies be tested for residential letting?

A

Annually which was carried by the local council (Moray Council)

32
Q

The gate lodge that became vacant was it a listed building and how did this influence any of your renovation works?

A

Yes, the property was a C listed property.
Some windows required replacing and improved to double glazing which I needed to apply to the local planning authority for planning permission to replace these windows. We managed to achieve planning permission by replacing like for like with wooden sash windows and in the same colour (white).

33
Q

Who is responsible for the designation of listed buildings in Scotland?

A

Historic Environments Scotland (HES)

34
Q

What legislation is in place to manage listed buildings?

A

Planning (Listed Buildings and Conservation Areas) (Scotland) Act 1997

35
Q

You mention that one of the options you have for the gate house was to turn it into a holiday let. Can you talk me through any additional costs that might incur in terms of business rates?

A

For short term letting you need a licence
Might have to pay non domestic rates
Local assessor will advise if your property is liable for business rates dependent on the period of which the property is available for let

36
Q

Which properties are exempt from requiring an EPC?

A

stand-alone buildings (other than dwellings) with a useful floor area of less than 50m²
temporary buildings with a planned use of two years or less
buildings with a low energy demand, i.e. non-residential agricultural buildings and workshops
buildings sold for the purpose of demolition