Property Management Flashcards
What are three examples of costs that should not be incorporated into a service charge
1) initial design & construction
2) Asset Management Costs (such as finding new tenants)
3) Improvement above normal maintenance that can’t be justified by cost-benefit analysis
What is the service charge benchmarking tool?
Bellrock - SCOR
What is the price per square foot for a shopping centre and office service charge in London
£5 psf & £15 psf
What would impact the cost of a service charge per square foot?
Some schemes may put on community events which drive footfall, which may be included in the SC and increase costs
What are the issues are that out with a unit not being open in a shopping centre aside from vibrancy
Who is looking after/repairing the unit if the tenant is not there
What are three ways service charge caps can increase by
1) Fixed % 2) RPI 3) CPI
What needs to be served for non-rent related forfeiture
Section 146 notice of the Law and Property Act (1925)
What case states that landlords have the ability to enter units and make repairs and recharge cost to tenants if they fail to do so?
Jervis v Harris (1996)
What is an effective FRI lease?
Where the tenant is responsible for external repairs, but these are organised by the landlord
What percentage above the base rate is interest typically added to arrears
2 to 4%
What are the four quarterly rent payments days?
25th of March
24th of June
29th of September
25th of December
What does PPM stand for?
Plant preventative maintenance
What did the re-entry clause allow?
Re-entry 14 days after rent unpaid
When can a statutory demand be used?
If the tenant does not pay after 21 days and the arrears are over £750
What does the current cap need to be multiplied by to reach the new cap?
RPI prior to the start of current SC year / RPI prior to start of previous SC year
What will a landlord insure the building up to?
The reinstatement of the building
Which case establishes the difference between a lease and a license
Street v Mountford (1985)
How is a lease different from a license?
Lease provides occupier with interest in the land
What is required before obtaining a license to alter?
An undertaking for surveyor and solicitor costs
What are the three types of dilapidations schedules?
Interim - during the course of lease
Terminal - towards end of lease
Final - at or after lease expiry
Where would you find information relating to the service charge within a lease?
In the service charge appendix
When would a license to alter be required?
For works involving structural alterations
How could you increase the EPC in a shopping centre unit?
Replace fluorescent lighting with LED lighting
Consider installing solar panels
What are examples of soft services?
Cleaning, landscaping, security
