Property Management Flashcards
Difference Assignment and sub-let (and what is impact on investment value); why are both used?
- assignment: new tenant has direct relationship w LL
- sub-let - new tenant has direct relationship w main tenant
Lease can be absolute, open or relative
why sub-let?
- requirement of lease
- for part of demise not whole
- MR > passing rent
- tenant wants to re-occupy in future
- new party is lesser covenant strength
What actions should be taken when dealing with app forconsent to assign of sublet?
read kease
- check MR
- what will be effect on inv value?
- has rent deposit been agreed?
- obtain the client approval to proceed
if consent, licence will be required
What are LL rememdies for illegal alientation?
forfeiture, damages or injunction
what is L&T
landlord and tenant Act - gives protection to tenants in situ - can opt out
Can you make profit from a service charge?
no you should only seek to recover the amount spent and no more
What are 3 examples of some of the service charge principles?
- All expenditure that the owner and manager seek to recover must be in accordance with the terms of the lease.
- Subject to section 4.2.7, owners and managers must seek to recover no more than 100% of the proper and actual costs of the provision or supply of the services.
- Owners and managers must ensure that service charge budgets, including appropriate explanatory commentary, are issued annually to all tenants.
- Owners and managers must ensure that an approved set of service charge accounts showing a true and accurate record of the actual expenditure constituting the service charge are provided annually to all tenants.
- Owners and managers must ensure that a service charge apportionment matrix for their property is provided annually to all tenants.
- Service charge monies (including reserve and sinking funds) must be held in one or more discrete (or virtual) bank accounts.
- Interest earned on service charge accounts – or where separate accounts per property are not operated, a proper and reasonable amount of interest calculated on normal commercial rates – must be credited to the service charge account after appropriate deductions have been made.
- Where acting on behalf of a tenant, practitioners must advise their clients that if a dispute exists any service charge payment withheld by the tenant should reflect only the actual sums in dispute.
- When acting on behalf of a landlord, practitioners must advise their clients that following resolution of a dispute, any service charge that has been raised incorrectly should be adjusted to reflect the error without undue delay.
Did you get a building surveyor out to look at the works once the alterations had been completed?
No due to the scale of the works which were minimal if it were large scale works I would have but in this case I asked our engineer to inspect
You are asked to prepare a property management plan for a new client with a portfolio of mixed-use commercial properties. What key elements would you include in your plan, and how would you tailor it to meet the client’s needs?
One of your managed properties is facing compliance issues with fire safety regulations. How would you manage this situation, and what steps would you take to ensure compliance?
A client is considering outsourcing the management of their commercial portfolio. How would you advise them on the pros and cons of outsourcing versus keeping property management in-house?
You are managing a commercial property with an upcoming lease renewal. The tenant is requesting a significant reduction in rent. How would you manage the negotiation, and what advice would you provide your client?
A client is concerned that their property’s service charge budget is too high, leading to tenant complaints. How would you review and manage the budget to address this concern?
You have been instructed to manage a retail property where the tenant has reported several maintenance issues. How would you handle the situation while ensuring minimal disruption to the tenant’s business?
client owns a multi-let office building, and one tenant has fallen into arrears. How would you approach this situation, and what advice would you give your client?
- Court proceedings
- Use of rent deposit
- Pursue former tenants and guarantors
- Servce statutory demand
- Commercial rent arrears recovery scheme
- Agree another mutually acceptable arrangement
- Forfeiture,
- PP
Note that it’s a holistic view, have duty to tenants as they pay service charge
How have you provided strategic advice on maintenance or capital improvements to enhance the value of a commercial property?
Have you ever had to resolve a service charge dispute? How did you handle it, and what was the outcome?
Can you describe how you advised a client on the recovery of service charges in a multi-tenant commercial property?
How have you provided advice to a client about managing their portfolio in response to changing market conditions?
Can you provide an example where you helped a client with lease negotiations or renewals? What key factors did you consider in your advice?
Have you advised clients on managing vacant properties? What were your recommendations to ensure security and minimize costs?
- building insurance and notifying insurers
- obtaining EPC
- H&S and fire risk assessment of building
- arrange security patrol, water flushing
- maintaining fabric of building
Can you describe a time when you provided strategic property management advice to a client? How did your advice add value to their portfolio?
What process do you follow for inspecting properties to ensure compliance with legal and contractual obligations?
we have internal inspection checklist with included checks such as H&S, water flushing, cleaning, checking emergency lights and fire alarms etc.
How would you approach a situation where a tenant is in breach of their lease obligations?
- understand what the breach is
- review the lease to see if they are indeed in breach
- determine severity
- put recommendation to client
- issue warnings/ letters/ arrange meeting as appropriate with tenants
Can you provide an example where you had to manage a property with multiple tenancies? How did you handle service charges, rent collection, and maintenance issues?