Property Management Flashcards
What were your main responsibilities at S. P. Mews?
I was instructed by my client to scope out + oversee external maintenance works to 10 properties at a residential complex
Can you provide more details about the complaint you received from the tenant at S. P. Mews?
The tenant called me to explain that the contractor was not providing adequate notice before turning up to carry out works. They also expressed dissatisfaction with the colour of the windows + doors on completed properties in the complex + was quite emotional about this. She followed up this phone call with an email
How did you coordinate with the contractor to address the tenant’s concerns at S. P. Mews?
Called them initially to inform them of the situation
Then set up an in person meeting on site with the contractor + tenant to address their concerns
The contractor was apologetic + agreed to post letters through the tenants’ doors with proposed visit times
What steps did you take to resolve the issue of the contractor not providing adequate notice before undertaking works at S. P. Mews?
Called the contactor + reminded them that they must provide at least 24 hours’ notice
Also set up an in-person meeting on site with the contractor + tenant to make it clear to the contractor + reassure the tenant
What strategies did you implement to address the tenant’s dissatisfaction with the colour of the windows and doors on completed properties at S. P. Mews?
Visited the complex to have a look at the completed works to date
Then spoke to the contractor on site to understand why the colour was different
They reassured me that the staining would fade over time to match the existing colour + that colour used was like-for-like as close as possible
I communicated this with the tenant + this was reinforced by the contractor in person
Was the tenant aggressive + how did you react to this?
The tenant was initially very aggressive on the phone. I listed to them + stayed calm
They were more understanding in person + had calmed down by then
How did you communicate the resolution strategies to your client and the affected tenant at S. P. Mews?
Kept my client informed by email after having an initial phone call with them to explain the situation
Communicated with the tenant verbally + in person + followed up any key points + agreements via email
What advice did you provide to your client concerning proper contractor management at S. P. Mews?
Advised my client of the importance of contractor management that was crucial in this instance as if the complaint escalated, this could’ve been a breach of contract
How did your intervention prevent a potential breach of contract claim at S. P. Mews?
It stopped the tenant’s complaint from escalating into a formal complaint
What could have been the potential impact if the tenant’s grievance had escalated at S. P. Mews?
The tenant could’ve escalated the complaint + made it formal
My client may have also been liable for breach of contract
This would’ve had a negative impact on their reputation
How important was your role in mitigating a potential liability for your client or preventing the tenant from vacating at S. P. Mews?
It was very important as it prevented the tenant from escalating their complaint
Why did the contractor have to give 24 hours’ notice at S. P. Mews?
This was stated in the lease + in the contract with the contractor
Are there any exceptions to this?
No
Would you advise that tenants are involved in the specification of works?
No
Views can be very subjective
How would you stop the disagreement at S. P. Mews from happening in the future?
Remind contractors of their obligations under their contract before they start work
How do you manage contractors?
Ensure they understand the works specification + agreed cost
Request weekly updates regarding works
Carry out pre-start meetings + visit works part way through
Regularly check in with them as well as tenants if property is occupied
Would you use this contractor again at S. P. Mews?
Yes - they are a reputable contractor + complete works to a good standard
Talk me through your advice at S. P. Mews
I was instructed by my client to oversee external maintenance works at a residential complex. During works, I received a complaint from a tenant, reporting that the contractor had been turning up unannounced without adequate notice. They also expressed dissatisfaction regarding the colour of windows + doors on completed properties + was adamant that the property she was renting would not look like these.
I informed my client of the situation + advised them of the importance of good contractor management to prevent the complaint from escalating. With their approval, I set up an in person meeting with the tenant + contractor, reminding the contractor of the importance of providing at least 24 hours notice + reassuring the tenant that the colours used would fade over time
How did you know that the colour of the windows + doors would fade over time?
I spoke to the contractor who is an expert in this field + they reassured me that it would
I also spoke to senior colleagues who confirmed that this was the case
Why would the colour fade over time?
Because of exposure to sunlight + UV rays
Why was your advice of value?
Advice prevented the tenant’s complaint from escalating + prevented a potential breach of contract claim
Please describe the property 26. H Lane
4 bedroom detached house
Brick cavity walls, part rendered, pitched tiled roof
UPVC windows (apart from 1)
Single integral garage
Describe the condition of 26. H. Lane when you first inspected it
Poor condition despite meeting compliance standards
Stained carpets, walls damaged with marks + stains, wallpaper peeling, mould in bathroom, rotten garage window, rotten rear door, damaged internal doors
What works did you identify at 26. H. Lane?
Carpet replacements throughout
Replacement window in garage UPVC
Redecoration of ceilings, walls + woodwork
3 x replacement internal doors
Replacement back door UPVC
Resealing fixtures in bathroom + WC
Regrouting tiles
Clean + stain block mould
Render repairs, gutters, fascias, window cleaning
Did 26. H. Lane meet compliance regulations at the time of your inspection?
Yes
If 26. H. Lane was not compliant, what advice would you give to your client?
Would not be able to rent out property until property was compliant
What makes a property compliant?
Ensuring property meets H&S standards, including smoke detectors, fire extinguishers
Ensuring gas + electrical systems are tested regularly + that certificates are provided afterwards
Ensuring there is an EPC
Keeping property in good repair
How did you calculate + present the cost of necessary repairs + refurbishment to your client?
I obtained quotes for the works from 3 contractors
Opted for most cost-effective contractor
Presented costings + details of proposed works in a report
What is a payback calculation? Please give more details
Estimates number of years it would take to recoup costs based on the estimated rental value + void costs
Based on £7000 pa void costs + £21,600 pa, would take 0.98 years to pay back
How did you convince your client to proceed with the full refurbishment despite their initial reluctance?
Supported recommendation with payback period
Highlighted potential to achieve a higher rental income
Highlighted that previous tenants had been in occupation for 10 years
Talk me through your advice at 26. H. Lane
Advised client to proceed with a full refurb
Recommended most cost-effective contractor with good previous track record
Advised should take 3-4 weeks
Advised that costs would recoup in just under a year if achieve rent of £21,600 pa
Why was your advice at 26. H. Lane valuable?
Supported advice with payback calculation. This indicated that the works were worth the investment + as the client is not disposing the property anytime soon, it was worth spending the money
Why did you recommend a full redecoration at 26. H. Lane?
Tenants had been in occupation for 10 years - property was tired + not in an acceptable state to be let
Based on your experience, how did the refurbishment impact on the potential rental income of 26. H. Lane?
Allowed property to achieve a higher rent of £21,600 pa
How many quotes did you obtain for the refurbishment works at 26. H. Lane + why?
Three
Higher value work - thought it was necessary to obtain third quote in case of any cost discrepencies
What were the factors you considered in recommending the most cost-effective contractor at 26. H. Lane?
Cost, lead time, proposed duration, reputation, previous standard of works
When utilising pay back calculations to justify advice what’s your rule regarding cost/benefit?
Generally, if works pay back in two years then this is justifiable. But would depend on other factors like disposal timeline
What was the best way to present this to your client?
I would normally set up a meeting with client to discuss recommendations to ensure they were happy with them + then send over a detailed report
What as your reasoning behind not just putting 26. H. Lane back on the market?
Despite being compliant, it was not in an acceptable state to be relet
If your client had refuse you’re advice at 26. H. Lane how would you have responded?
Would advise my client if they don’t do works, won’t be able to let property without impacting on their reputation
What was the purpose of performing a tenant check in at the residential property in Brackley?
To ensure the property was in a good condition + that smoke alarms were in good working order
Allowed me to verify tenants’ identities, explain terms of lease + ensure they were happy
What was the purpose of reviewing the tenants’ passports during the check-in for the Brackley property?
To verify their identities to ensure they were eligible to rent in the UK
What were some of the main responsibilities you highlighted to the tenants during the property tour at the check in?
Encouraged tenants to keep property clean, tidy + promptly report any maintenance related issues
Explained importance of regularly testing smoke + carbon monoxide alarms + replacing batteries as needed
Also reminded tenant about when rent is due
What was the reason for checking the smoke + monoxide alarms during the check-in for the Brackley property?
Requirement to test alarms to ensure they are in working order on day tenancy begins under Smoke + Carbon Monoxide Alarm (Amendment) Regs 2022
Why was it important to record the water + electricity meter readings?
To ensure the tenants’ are billed accurately from their move in date
What was the process you followed for uploading the meter readings onto the shared file?
During inspection, took note + photo of readings
Transferred notes + photos onto laptop + uploaded these to DMS
Also emailed copy to tenant
What are the contents of the documentation provided to the tenants upon returning to your office?
Right to rent guide
EPC
Gas safety certificate
Inventory
What is the format in which these documents were shared with the tenants?
Shared documents via email to ensure written audit trail
Are there any other documents you share with the tenant after a check in?
Gas, water + electricity meter readings
Signed tenancy agreement
PAT certificate
How does the EPC certificate, Gas Safety certificate, and inventory review contribute to the property management process?
EPC - ensures property meets legal requirements before property is let, helps landlords contribute to sustainability
Gas safety - ensures landlord meets legal obligations for gas safety, protects tenants from risks, e.g. gas leaks/carbon monoxide poisoning
Inventory review - provides clear evidence to resolve disputes over damages + missing items, ensures fair deductions from tenants’ deposits
Where abouts would you find the gas, electricity + water meter in a residential property?
Gas meter - located in meter box on exterior wall, utility, basement
Electricity meter - location near main entrance, utility or garage
Water meter - located outside property or utility
What is the significance of the right to rent guide provided to the tenants?
Serves to inform tenants of their rights + responsibilities while renting a property in the UK
How is tenant satisfaction confirmed before handing over the keys of the property?
Tenant signs check out form that is completed during check-out
You completed a few tenancy check in/check out reports, what’s the benefit of these?
Provide detailed record of property’s condition at start + end of tenancy
This can help prevent disputes, protect deposits + maintain property standards
Who pays for them?
The landlord
What happens if the tenant refuses to let you in?
Try resolve issue through effective communication
Serve formal letter reminding tenant of obligations under lease
If tenant continues to refuse, would seek legal advice or consider eviction proceedings
What is the process for verifying the occupant is your tenant?
Ask for identification documents, e.g. driving licence + passport
Verify rental history from previous landlords
Ensure lease agreement matches occupant’s details
How do you confirm a passport Is authentic?
Ensure passport is the original + belongs to tenant
Verify that photo matches tenant + date of birth is consistent across all documents
Verify name on the passport by referring to other documents
Check passport is not damaged or altered
How would you gain access to the property if English was not the first language of the occupant?
Would arrange for an interpreter to facilitate communication + provide written notices + documents in their preferred language
Would also be respectful + patient
On the example of the check-In at Brackley why was the EPC not supplied before they signed the tenancy?
It was issued before tenant signed the tenancy, however provided it to them again with other necessary documents
What are the right to rent checks?
Legal requirement for landlords in England to ensure tenants have legal right to live in UK
What legislation introduced right to rent checks?
Immigration Act 2014 - requires landlords to check immigration status of tenants to ensure they have a legal right to rent properties in England
What Is a gas safety certificate?
Document that confirms gas appliances have been checked by a qualified gas engineer + are safe to use
What does it cover?
Gas appliances, e.g. boilers, gas fires, gas cookers
Flues + chimneys - ensure they are clear to allow gas to escape safely
Pipework - for leaks / signs of wear + tear
Gas pressure + flow
Carbon monoxide leaks
How long Is It valid for?
12 months from date of inspection
How much does It cost?
£60-£90
Prices vary depending on location + specific enginneer
Who is responsible?
Landlords are responsible for ensuring gas safety in their rental properties
Do properties have to have smoke and carbon monoxide alarms?
Yes
Smoke Alarms - Landlords must ensure at least one smoke alarm is installed on every storey of their rental property where there is a room used as living accommodation
Carbon Monoxide Alarms - Landlords must ensure that a carbon monoxide alarm is installed in any room used as living accommodation that contains a fixed combustion appliance (excluding gas cookers)
What are the penalties if landlords do not comply with this?
Landlords can face fines up to £5000 for non-compliance
Can you provide a brief background about your client + the property H. Hill?
Client - non-for-profit organisation developing a national infrastructure scheme
Property - detached 4 bedroom bungalow. Brick cavity wall construction, pitched tiled roof. UPVC windows. Modern construction. EPC C rating
What process did you follow to conduct the rent review at H. Hill?
Inspected the property, found comparable evidence of similar properties in the near vicinity + made adjustments based on hierarchy of comparable evidence to arrive at opinion of market rent
How did you apply the hierarchy of comparable evidence for the rent review?
Placed most emphasis on direct comparable evidence that were new lettings + the most recent
Can you elaborate on the steps you took to inspect the property H. Hill?
Arranged access with the tenant beforehand + conducted due diligence
During inspection, firstly inspected surrounding area, external area then internal area
How did you conduct the comparable analysis at H. Hill?
Identified similar properties within 10 mile radius
Made adjustments based on hierarchy of evidence
Documented comparables in an excel spreadsheet
Then arrived at opinion of Market Rent
What factors did you consider in identifying an increase in Market Rent at H. Hill?
Reviewed lease agreement - tenant had been in property longer than 12 months + established that I had to give 2 months’ notice to the tenant when serving the notice
Checked lease - upwards only rent clause. Rent could either stay the same or increase
Carried out comparable research to identify the Market Rent
Considered condition of property - in good condition + disregarded tenants’ improvements
What advised rental figure did you recommend to your client at H. Hill?
£2,100 pcm / £25,200 pa (Approx. 5% increase)
Can you explain what was included in the rent review notice issued to the tenant at H. Hill?
Proposed rent + date it will come into effect
Steps to take if do not agree on rent
What would happen if the tenant disagreed to the rent?
Must serve a counternotice on the landlord calling upon landlord to negotiate regarding amount of rent paid. Must do this before starting date of proposed rent
What would have been the subsequent steps if a counter-notice was served by the tenant?
Negotiations would have been opened regarding proposed rent
What would happen if you cannot come to an agreement during negotiations?
The matter would be referred to expert for determination
How did you ensure that the new rent was implemented as scheduled?
Obtained approval from my client regarding level of rent
Checked notice had been received by tenant + they were happy with proposed rent outlined
Do landlords need to give tenants’ warning before issuing a rent review notice?q
If AST transitions into a periodic tenancy or if AST is 2 years and landlord wants to review rent after year 1, need to give at least one months’ notice before issuing the rent review notice
As per section 13 of Housing Act 1988
What does the Housing Act 1988 say about rent reviews?
Must provide one months’ notice before increasing rent (section 13)
Notice must be in writing + specify new rent + date from which it will be payable
Rent can only be increased once every 12 months
Did you give the tenant warning before issuing the rent review notice?
Provided one months’ notice before issuing rent review notice
Why did you do this / was there any legislation behind your reasoning?
To ensure tenant had sufficient time to prepare + decide whether they want to continue the tenancy
With standard ASTs, it is a requirement for one month under Housing Act 1988 however as this was a CTA, there is not any specific legislation. Rather, depends on what is specified in the tenancy agreement which is one month
What were the risks to the landlord at the H Hill rent review?
Tenant could have not agreed to the proposed rent
If negotiations failed, would have to go through expert determination or the tenant could’ve decided to vacate
This would leave my client with a vacant property + no income
Why was it an annual review?
This is what is stated within the lease + is preferred by my client
Was a new tenancy signed?
In this case - yes it was
How long are the tenancies for In this this example?
A year
Tell me about a challenge you have faced and how you overcome it
What is the role of a property manager?
Ensure timely rent payments + manage rent arrears
Ensure property’s are complaint
Ensure repairs + maintenance are undertaken to keep property in good condition
Manage tenant process
Tell me about the h&s obligations / fire safety obligations of a property manager
Must provide smoke alarms on each floor
Must ensure furniture has label to show it meets fire safety standards
Must check alarms are working on first day of tenancy
Must carry out repairs to faulty gas appliances, pipework or electric wiring
HMOs have additional responsibilities (must make sure there are clear fire escape routes displayed on each floor)
Tell me about your responsibilities for occupied properties
- I have had experience in managing reactive + planned maintenance works to occupied properties
- I have dealt with numerous tenants, whether that be coordinating works, carrying out regular inspections + organising check ins/outs
- During inspections, ensure that properties are habitable
- Had experience with organising compliance to resi properties
- I have undertaken numerous rent reviews + inspected properties beforehand
- Also had experience in carrying out viewings + assessing perspective tenants
Tell me about your responsibilities for vacant properties
Property managers must:
- Obtain EPC, consider MEES
- Inspect it regularly
- Isolate power supplies
- Landscaping/gardening
- Maintain fabric of building
- Maintain asbestos register
- Arrange security measures
- Tell insurers building is empty
Why is effective occupier liaison important?
Ensures clear communication between property managers + tenants - can reduce misunderstandings + create positive relationship
Can improve tenant retention by making them feel valued
Facilitates smoother property management processes, e.g. aids in resolving issues raised by tenants
What key legislation are you aware of?
Gas Safety (Installations + Use) Regs 1998
Homes (Fitness for Human Habitation) Act 2018
Tenant Fees Act 2019
Electrical Safety Standards in the Private Rented Sector (England) Regulations 2020
Smoke + Carbon Monoxide Alarm (Amendment) Regulations 2022
Tell me about the Gas Safety (Installations + Use) Regs 1998
Landlords must ensure gas appliances, fittings + flues are checked for safety at least once every 12 months
Must be carried out by a qualified engineer registered with Gas Safety Register
Must keep record of safety check for 2 years + issue copy to tenant within 28 days of check being completed + any new tenants before move in
How do you comply with the Gas Safety (Installations + Use) Regs 1998?
I am aware that a gas safety check must be carried out annually by a qualified Gas Safe engineer
When I have completed check ins, I have arranged for a gas safety check to be conducted + have issued a copy of the certificate to the tenants
Tell me about the Homes (Fitness for Human Habitation) Act 2018
Requires all landlords (private + social) to ensure property (including common parts) is fit for human habitation at the start of the tenancy + throughout
If property is found to be unfit, tenants have right to take legal action against landlord
What is considered by the courts if a tenant takes legal action?
Factors:
Damp
Bad condition
Not enough natural light
Unsafe
No hot or cold water
Issues with drainage
Inadequate ventilation
Overcrowding
Are there any exceptions under the Homes (Fitness for Human Habitation) Act 2018?
CTAs
Temporary accommodation
When issue is caused by tenant behaviour
Acts of god, e.g. storms + floods
How do you comply with the Homes (Fitness for Human Habitation) Act 2018?
Ensure properties I have inspected are fit for habitation
Whenever I organise repairs to properties, ensure that 24 hours’ notice is given + repairs are undertaken in reasonable hours
Tell me about the Tenant Fees Act 2019
Bans most lettings fees + tenancy deposits paid by tenants
Aim - reduce costs that tenants can face at outset + throughout tenancy
Applies to ASTs, student accommodation, HMOs, HAs
Does not apply to long leases, shared ownership leases
What can landlords/letting agents charge to tenants in accordance with the Tenant Fees Act 2019?
Rent
Refundable tenancy deposits capped at no more than 5 weeks’ rent where total annual rent is less than £50,000 + 6 weeks’ rent where total annual rent is £50,000+
Refundable holding deposit capped at no more than 1 weeks’ rent
Payments associated with early termination requested by tenant
Payments regarding TV licence, utilities
Default fee for late payment or rent or lost key
How do you comply with the Tenant Fees Act 2019?
Ensure landlord (client) does not charge tenant for application fees, referencing fees, inventory fees + renewal fees
Tell me about the Electrical Safety Standards in the Private Rented Sector (England) Regulations 2020
Requires landlords to have fixed electrical installations in properties inspected + tested by qualified person at least every 5 years
Must provide copy of report to tenants within 28 days + before they move in
If report identifies any issues, landlords have 28 days to complete work
Does NOT apply to electrical appliances
What would happen if a landlord didn’t comply with the Electrical Safety Standards in the Private Rented Sector (England) Regulations 2020?
Could face financial penalties of up to £30,000
Local authorities have right to issue remedial notices if landlords fail to comply. Can also arrange for work to be carried out + recover costs from landlord
How do you comply with the Electrical Safety Standards in the Private Rented Sector (England) Regulations 2020?
Aware that electrical installations must be inspected + tested every 5 years by qualified person
When carrying out check ins, arrange for checks to be completed + send copy of certificate to tenant before they move in
Tell me about the Smoke + Carbon Monoxide Alarm (Amendment) Regulations 2022
Landlords must ensure that there is at least one smoke alarm on each floor of homes where there is living accommodation
Must ensure that there is a carbon monoxide alarm in any room where there is a fixed combustion appliance (excl gas cookers)
Must ensure alarms are in good working order on day tenancy begins
What was the amendment in 2022 to the Smoke and Carbon Monoxide Alarm Regulations 2015?
Extended requirements to social housing as well as private rented properties
What are the penalties for non-compliance with the Smoke and Carbon Monoxide Alarm (Amendment) Regulations 2022?
Local authorities can impose fines of up to £5,000
How do you comply with the Smoke + Carbon Monoxide Alarm (Amendment) Regulations 2022?
When carrying out check ins, I ensure that all smoke alarms are in good working order on the day the tenancy begins (press test button on devices)
Check that there is a smoke alarm on each floor where there is living accommodation
Also check that there is a carbon monoxide alarm in any room where there is a fixed combustion appliance (excl gas cookers)
What RICS guidance are you aware of in relation to property management?
Professional Standard Property agency + management
1st edn, effective from 1 Jan 2025
Please tell me about the new RICS property manage guidance
Covers resi, commercial + mixed-use real estate, incl. sales, lettings, management, auctioneering
Standard emphasises transparency, integrity + professionalism. Requires members to act honestly, maintain professional competence, provide diligent service, treat others with respect + act in public interest. In line with Rules of Conduct
What is the purpose of a rent review?
To adjust the rent to reflect current market conditions
What are rent arrears?
Amount of rent that a tenant owes but has not yet paid (overdue rent)
What methods are available to collect rent arrears?
- Payment plans (agree in writing)
- Serve section 8 notice + allow tenant the specified period to pay arrears
- Eviction (last resort) -
Tell me about the rent arrears process in your firm
Rents are due on 1st day of every month
If don’t receive it, send letter to tenant after 7 days
If nothing, send second letter after 14 days
If nothing, send letter after 21 days
Would propose a 6-12 month payment plan if struggling to pay rent, however if uncooperative + do not pay, will send a final letter via tracked postage
Inform client of situation + ask what they want to do. May need to serve a notice to quit
What is a notice to quit?
Formal letter sent to tenant, requesting them to vacate the property
1st step in eviction process
What happens if a tenant does not vacate after serving a notice to quit?
Can apply to court for a possession order - requires tenant to leave property
If tenant still refuses, can request a warrant of possession. Involves court-appointed bailiffs who will enforce eviction
What is an AST?
Assured Shorthold Tenancy
Offers less security for tenants, lasts for a fixed term
After fixed term, landlords can regain possession with minimum 2 months’ notice without needing to provide a reason
What are the 2 types?
Joint AST
Individual AST
What is an assured tenancy?
Provides long term security to tenants (can remain in property as long as adhere to tenancy terms)
Landlords can only regain possession under specific circumstances, e.g. rent arrears or property damage
How do these differ?
AST provides less security - landlords can regain possession after fixed term ends with section 21 notice
AT offers greater security - tenants can stay unless landlords can prove grounds for possession under Housing Act 1988
AST - landlords can evict tenants without providing specific reason after fixed term as long as give reasonable notice
AT - landlords must provide valid reason for eviction, e.g. rent arrears or property damage
What would you expect to find in a tenancy agreement?
Term
Rent
Parties involved
Renewal terms
Details of deposit, including conditions for its return
Responsibilities regarding repairs, maintenance + utility payments
Rules, e.g. pet policies, smoking
Conditions for tenancy termination, including notice periods
Signatures
What is a Rent Act 1977 tenancy?
Protected tenancy - provides long term security of tenure for tenants whose agreements started before Jan 1989
Allows tenant to apply for a fait rent for property to be registered. Once registered, this is the only rent that can be charged
Prevents landlords from evicting tenant unless obtained possession order from court
Gives rights to tenant’s spouse, partner or family member to take over tenancy if tenant dies
Tell me about tenancy deposits
Landlord must put deposit in government-approved tenancy scheme
Landlord/agent must put deposit in scheme within 30 days of receiving it
At end of tenancy, landlord must return deposit within 10 days of both agreeing amount tenant gets back
If in dispute, deposit will be protected in scheme until issue sorted
What Schemes can you use?
Deposit Protection Service
MyDeposits
Tenancy Deposit Scheme
(government approved scheme)
What scheme does your firm typically use?
Tenancy Deposit Scheme
Why must deposits be kept safely?
Legal requirement under Housing Act 2004 (landlords must protect with gov-approved tenancy deposit scheme within 30 days of receiving it)
Safeguards tenants’ money
Ensures tenant maintains property in order to get deposit back
TDP schemes provide a fair process to resolve disputes for deposit deductions
Who holds the deposit and how is interest dealt with?
Deposits must be held in a government-approved tenancy deposit protection scheme
Interest depends on deposit scheme:
DPS - if deposit is held for more than 182 days, interest is payable to tenant. Calculated daily + paid at end of tenancy
MyDeposits + TDS - schemes do not pay interest on deposits
When is the deposit returned and under what circumstances?
If tenant has met terms of tenancy agreement, e.g. paying rent on time + adhering to property rules
If tenant has returned property in good condition, accounting for normal wear + tear
How would you assess the property’s condition before returning a tenants’ deposit?
Would inspect the property + take a view as to whether condition is indicative of normal wear + tear typically expected
Are tenants entitled to quiet and peaceable enjoyment of a property?
Yes - right is known as the covenant of quiet enjoyment. Implied term in all tenancy agreements
What is a S21 notice?
Used to evict tenants to end an AST without providing a reason (NOT an assured tenancy)
Can be used after fixed term ends or during a periodic tenancy
Must give at least 2 months’ notice
Introduced by Housing Act 1988
What changes were made to Section 21 under the Deregulation Act 2015?
Landlords cannot serve Section 21 notice within first 4 months of tenancy
Landlords cannot evict tenants in response to complaints about property condition
Landlords must provide tenants with EPC, gas safety certificate + how to rent guide before serving section 21 notice
What is a S8 notice?
Allows landlords to evict tenants who have breached terms of tenancy agreement (AST + assured tenancy), e.g. rent arrears, damage to property
Notice period 2 weeks - 2 months
Landlord must provide evidence to support grounds for eviction
What is the Right to Manage?
Grants leaseholders of flats the right to take over management of their block (even without agreement of landlord)
Leaseholder qualifies if lease was granted for term exceeding 21 years
Must be exercised via a Right to Manage Company
What is PAT testing?
Routine inspection of electrical appliances to ensure they are safe to use
How can you terminate a residential tenancy?
Depends on type of tenancy + circumstance
Section 21 - for no-fault evictions. Serve at end of fixed term or during periodic tenancy with 2 months notice. For ASTs
Section 8 - for evictions due to tenant breaches. Notice period depends on grounds for eviction (typically 14 days)
What is the tenant does not leave after this notice is served?
Can apply to court for a possession order
If tenant does not leave after possession order, apply for warrant for possession - allows bailiffs to evict tenant
What rights does a landlord have if the right to manage is exercised?
Landlord can serve a counter notice, either admitting claim or stating that RTM company is not entitled to exercise right to manage
Right to be a member of RTM company + vote on decisions
Landlord still owns building, even though management responsibilities are transferred to RTM company
Tell me more about Section 8 notices
Used by landlords to evict tenants who have breached terms of tenancy agreement for reasons:
- Rent arrears
- Damage to property
- Nuisance
- Other breaches of agreement
Typically, must give tenants 14 days notice
Muse use a Form 3 notice or letter with same info to serve Section 8 notice
If tenant does not leave after notice period, landlord can apply to court for possession order
What are the grounds for repossession under Section 8?
Mandatory grounds (court must order possession if landlord proves ground):
1. Owner occupier
2. Repossession by landlord’s mortgage lender
3. Holiday let
4. Student let
5. Property required for minister of religion
6. Property required for redevelopment
7. Death of tenant
7A. Antisocial behaviour
7B. Tenant does not have right to rent
8. Serious rent arrears
Discretionary grounds (court can decide whether to grant possession):
9. Suitable alternative accommodation
10. Rent arrears
11. Persistent delay in paying rent
12. Breach of tenancy conditions
13. Deterioration in condition of property
14. Nuisance or illegal use of property
14A. Domestic violence
14ZA: Offence during a riot
15. Deterioration of furniture
16. Employee of landlord
17. Tenancy obtained by false statement
What should you do once the property is vacated?
Return tenants’ deposit within 10 days
Clean property
Inspect it + carry out necessary works in order to get it back on the market
Tell me about Crown Tenancy Agreements
Properties owned by Crown Estate or other government bodies
Tenancies are excluded from standard regulations that apply to private residential tenancies
Protected under Protection from Eviction Act 1977 - landlords must give at least 28 days before an order for possession can be granted
Do not have right to challenge unfair rent increases or right to remain in property after fixed term ends
Tenants’ have less security of tenure - can be evicted in 28 days (whereas private tenants have more extended notice periods + additional protections against eviction)
Not covered by Housing Act 1988
Why do CTAs offer less security of tenure?
Greater flexibility for government in case need properties
Focus is on serving needs of government rather than providing long term housing solutions
Are you aware of any new legislation?
The Right to Rent Bill
What is the aim of the Right to Rent Bill?
To provide greater security + stability for tenants (applies to resi tenancies)
Covers ASTs + fixed-term tenancies (will be replaced with periodic tenancies)
What are some key changes under the Right to Rent Bill?
Scrapping of Section 21 no-fault eviction + replacing with Section 8 - landlords will only be able to regain possession using prescribed grounds only
Scrapping of fixed term tenancies - all tenancies will be periodic from the start
Rent increases will be limited to once a year + must be done through a formal 13 notice
How will the Right to Rent Bill affect property managers?
Property managers will have to rely on Section 8 grounds for regaining possession. Will need specific reasons for eviction, e.g. rent arrears or property sale
Rent increases will be limited once a year + must be formally notified through a Section 13 notice
Property managers must ensure practices do not discriminate against tenants receiving benefits or those with children
Property managers must consider any pet requests, e.g. by negotiating insurance or requesting for additional deposits to cover potential damages
How will the Right to Rent Bill affect your work?
Won’t really affect majority of work as tenancies I have dealt with are Crown Tenancy Agreements which are exempt
How do you terminate CTAs?
Landlord can terminate at fixed term with 2 months’ written notice
Tenant can terminate at fixed term with 1 months’ written notice
Tenant can surrender with landlord’s consent
If after fixed term + periodic, landlord or tenant can serve notice at any time (same notice period)
If breach of agreement, can evict tenant with 28 days notice
What is the difference between a license + a lease?
License = permits use of property without exclusive possession. Offers more flexibility + used for ST agreements
Lease = grants exclusive possession of property for a fixed term
Tell me about service charges
Fees that leaseholders pay to cover cost of maintaining communal areas of resi property
Charges are associated with leasehold properties, where leaseholder owns property but not land it sits on
Calculated based on estimated costs of maintaining property for upcoming year. Leaseholders are provided with a budget at beginning of year + any surplus or deficit is adjusted in following years charges
Must be transparent, issue service charge invoice promptly + ensure it is clear + detailed
Is there any RICS guidance relating to service charges?
RICS Code of Practice Service Charge Residential Management Code, 3rd edn
How can you end a commercial lease?
Landlord would serve a section 25.2
Tenant would serve a section 27
What is the LTA 1957 Act?
Covers business tenancies + security of tenure
