Property Management Flashcards
What is the primary duty of care for a property manager according to the RICS Guidance Note on Commercial Property Management?
The primary duty of care is to the landlord, the client.
What are the two fundamental principles of rent collection?
- Accuracy of information, 2. Timing
When are the usual English, Welsh and Irish quarter days for rent payment?
25th March, 24th June, 29th September and 25th December
What are Scotland’s quarter days for rent payment?
28th of February, May, August and November
What is the easiest collection method for rent?
Bank direct debit
What are the two main types of alienation discussed in the document?
Assignment and sub-letting
In an assignment, what is the relationship between the new tenant (T2) and the landlord?
The new tenant (T2) has a direct relationship (privity of contract) with the landlord.
In a sub-letting, what is the relationship between the sub-tenant (T2) and the original tenant (T1)?
The new sub-tenant (T2) has a direct relationship with the tenant (T1) and pays them the rent, who then pays rent to the landlord.
What are the three types of alienation clauses mentioned?
Absolute, open, and restrictive (qualified)
What is the usual clause regarding landlord’s consent for alienation?
Landlord’s consent is not to be unreasonably withheld or delayed.
What is a Licence for Alterations?
A document to be completed before alterations works commence, protecting parties at rent review and dilapidations at the end of the lease.
What are two useful functions of a Licence for Alterations?
To protect the parties at rent review and dilapidations at the end of the lease.
What does Section 19 of the Landlord and Tenant Act, 1927 state regarding improvements?
If a lease prohibits improvements without Landlord’s consent, Section 19 imposes a proviso that such consent cannot be unreasonably withheld.
What is the formula for dilapidations recovery?
Breach + Loss + Evidence = Recovery
What are the THREE forms of Schedules mentioned for dilapidations?
- Interim Schedule, 2. Terminal Schedule, 3. Final Schedule
What is the aim of the RICS Professional Standard: Dilapidations, 7th edition 2016?
To reduce claims between landlords and tenants.
Who is usually responsible for arranging insurance in a commercial property lease?
The landlord, who then re-charges the tenant.
What is the usual basis of measurement for building reinstatement valuations?
Gross internal areas for commercial properties, by reference to the RICS Building Cost Information Service (BCIS).
When did RICS become a Designated Professional Body for insurance matters?
February 2005.
List three actions a property manager should consider for empty buildings.
Any three of: Building insurance, Maintaining fabric, Obtaining EPC, Clearing combustible material, Regular inspections, Health and safety assessment, Informing rating authority, Arranging security, Sealing letterbox, Planned maintenance, Setting frost controls, Disposal strategy, Maintaining asbestos register, Landscaping/gardening.
What is the normal commercial lease allowance for interest on late rent payments?
2%-4% above Bank Base Rate, 7-14 days following the rent payment date.
What is the Commercial Rent Arrears Recovery Scheme (CRARS)?
A scheme that replaced the ancient law of distress for rent, available only to commercial property landlords where a minimum level of rent is due under a commercial lease.
What is the timeline for CRARS?
Minimum of 7 days unpaid rent, Minimum of 7 clear days warning notice, Enforcement agents visit, 2 clear days to follow, Re-entry by enforcement agent to seize goods, Allow 7 clear days before sale of goods.
What does Section 6 of the Law of Distraint Amendment Act, 1908 allow?
It allows the landlord to serve a notice to ensure that any sub-tenant’s rent paid for any arrears due from the tenant can be received by the superior landlord.
