Property Management Flashcards
1
Q
What can a landlord do if a tenant doesn’t pay rent?
A
- Serve a formal demand before rent becomes due
- Negotiate for the rent to pay later in the month if a one off
- Draw down on the rent deposit deed or parent guarantee company, or tenants guarantor
- Can take possession of the tenants goods (CRAR)
- Can take tenant to court
- Statutory demand
- If the tenant is bankrupt, the landlord will become a preferred creditor at liquidation
- Can surrender or forfeit the lease
2
Q
What is forfeiture?
A
- When the landlord brings a lease to an end following a breach of covenant by the tenant
- It can be exercised by peaceably re-entering the premises or commencing proceedings for possession of the demised premises
- There must be a default by the tenant
- The landlord has to serve a write claiming possession or reclaim the premises through peaceable re-entry for example changing the locks
- If the landlord wants to forfeit, they should not accept any further rent
3
Q
What is a section 146 notice under the Law of Property Act 1925?
A
- It is served by a landlord who intends to commence forfeiture proceedings following a breach
- It must be served before peaceable re-entry
- Failure to do so can leave a landlord open to counter claims for damages
- There is no statutory format of the notice, but the tenant must be informed of the covenants of the lease, the breach of these covenants, and a timeframe is required to reasonably rectify
4
Q
What is a section 17 notice under the Landlord and Tenant (Covenants) Act 1995?
A
- Where the former tenant has assigned the tenancy, and has entered into an authorised guarantee agreement (AGA) for the benefit of the new tenant, the former tenant remains bound to pay any fixed charges where the new tenant cannot.
- Upon receipt of the notice the former tenant is bound by the covenant to pay any outstanding charges
- If the deadline is missed and the notice is not served within the 6 month window the landlord loses the right to pursue the former tenant for the unpaid fixed charge
5
Q
How can you compensate a tenant for improvements at the end of the lease?
A
- The Landlord & Tenant Act 1927 contains provisions for the tenants to be compensated where improvements to the tenancy have been made during their tenancy
- In order to claim compensation, tenants must serve a notice on the landlord of their intention to carry out improvements
- The amount of compensation payable is the lesser of the net addition to the value as a whole as a direct result of the improvement or the reasonable cost of carrying out the improvement at the termination of the tenancy
6
Q
What is an AGA?
A
An authorised guarantee agreement is where the outgoing tenant who is assigning the lease will act as a guarantor for the performance of the assignee for the lease covenants which they have been released from
7
Q
What are the aims and objectives of the professional standard Service Charges in Commercial Property (2019)?
A
- Improve general standards and promote best practice, uniformity, fairness and transparency in the management and administration of services charges in commercial property
- Ensure timely issue of budgets and year-end certificates
- Reduce the causes of disputes and to provide guidance on resolution
- Provide guidance to solicitors, their clients (whether owners or occupiers) and managers of service charges in the negotiation, drafting, interpretation and operation of leases, in accordance with best practice
8
Q
What does the guidance note Commercial property management in England and Wales 2011 cover?
A
- Best practice in the management of commercial property
- How the person(s) in control of a building should manage, communicate and control income and expenditure
- Applies to all members who undertake property management for the landlord as managing agent
- Focused primarily on the management of commercial properties in England and Wales, with special mention of mixed use developments
