Property Management Flashcards
How did you make sure the Service Charge budget was correct?
I checked it against the previous 3 years and benchmarked my SC against an industry database.
Checked againts industry use index.
Sinking fund
Upgrading an asset, Money set aside for a wasting asset.
Reserve fund
Fund formed to meet anticipated future costs and major repairs.
What is CRAR
Commercial rental arrears recovery
What are the 3 steps of CRAR
- Serve notice of enforcement procedures.
- Instructing of enforcement agents
- Recovery of rental arrears
Is there a Service charge provision for rental arrears recovery?
Service Charge Arrears Recovery
What can landlord use to repair something under tenants obligation
- Do the works themself and reclaim back.
- Service notice to repaid S.146
- Interim schedule of dilaps
- Forfeiture, must be in lease and s.146 must have been served.
What is the case law related to repairing obligation?
Jervis vs harris.
What guidance by RICS is there for Service Charges?
Service charges in commercial property 2018 (April 2019)
What principles must a property manager act in accordance with relating to Service Charges?
All expenditure must be in accordance with the terms of the lease
Owners and managers must seek to recover no more than 100% of the actual costs
Must ensure service charge budgets are issued annually
Must ensure service charge accounts are issued annually
Must ensure service charge apportionment matrix is issued annually
SC monies must be held in a discrete account.
Interest on SC’s must be credited to SC accounts
When acting on behalf of landlord practitioners must advise clients that following dispute resolution, incorrect SC’s that have been raised must be adjusted.
How can you apportion service charge
Sq ft
Rateable value
fixed percentage
weighted floor area
What remedies are there for rent default?
Court proceedings
rent deposit
pursue former tenants/guarantors
serve statutory demand
CRAR
forfeit the lease
negotiate payment plan
another mutually acceptable arrangement.
Are you aware of any case law that relates to assignment?
Dong bang minerva vs Davina
Define dilapidation?
Condition of a property being in a state of disrepair and deterioration
What are the Landlords remedies for breach of repairs?
- Do the works and charge the tenant.
- Serve a notice to repair. (S.146)
- Interim schedule of dilaps
- Forfeiture
How do you carry out an assignment
What does the L+T act cover.
Tenant undertake improvements or alterations without prior consent.
What is a hypothetical term?
Assumed duration of the lease to determine the new market rent, which may differ from the actual term.
When did asbestos stop being used?
1999
What would you advise your client to do if a property was constructed in the early 2000’s
Instruct an asbestos survey.
What is a risk assessment?
An examination of potential hazards in workplace that can cause harm to people.
What is subsidence?
Downward movement of the foundations of a building
What is an inherent defect
A defect in the design or material which has always been present
What are the 3 common causes of defect?
Water
movement
defective or deterioration of building materials
What’s the difference between standing orders and direct debits
Direct debit - easiest rent collection method is by bank direct debit where any amount of money can be taken from the account.
Standing order - only a previous agreed amount of money can be taken.
What does formal CPD include
Includes all forms of structured learning that has clear objectives and outcomes
What are the benefits of becoming an RICS member
Status - Provides clients with confidence
Recognition - Promotion of professional excellence
Market advantage
Knowledge
Network
What is a notice to repair served under.
Section 146 of the Law and Property Act 1925
When looking at buildings how would you assess any defects?
Start looking at roof and work down.
- Take photographs on site
- Try to establish cause of damage
- Inform client of investigations
- Recommend advice
How do you base your fees for management work?
Set fixed fee based on time spent managing properties
How do you base your fees for management work?
Set fixed fee based on time spent managing the properties.
What are some of the Tenants usual obligations in a lease?
payment of rent
payment of service charge
keep internal or whole in good repair
do not sublet or assign without permission
Adhere to lease terms
Only use for specified lease
Only do maintenance and alterations allowed by lease and/or landlord
What are some of the landlords usual obligations in a lease?
Insurance
Quiet enjoyment
Certain repairs and maintenance
Health and safety
Energy performance
Provide SC budgets, apportionments and breakdowns of the works
Did you have consideration for any GDPR when dealing with the parking issue at Walmley?
ANPR has CCTV, which I considered.
I had to conduct a Data Protection Impact Assessment.
Why would you have to conduct a Data Protection Impact Assessment?
A DPIA is required as the ANPR system is monitoring a publicly accessible place on a large scale and tracking peoples behaviour (in this case parking behaviours)
How do you conduct a DPIA?
- As outline in Article a DPIA must contain:
A systematic description of the envisaged processing operations and the purposes of the processing. - An assessment of the necessity and proportionality of the operations in relation to the purposes.
- An assessment of the risks to the rights and freedoms of data subjects
What Case Law relates to a Landlord imposing a S/C?
O May vs City of London
