Property Management - Insurance / Empty Buildings And RC 1 Flashcards
What is usually the responsibility of the landlord regarding insurance?
It is usually the responsibility of the landlord to arrange and re-charge the tenant.
What does building insurance cover?
Cover for reinstatement of the building for a range of insurance perils such as fire, storm, flood, subsidence, loss of rent & service charge, theft, terrorism, public liability, etc., plus VAT and fees, site clearance/fencing/demolition, and inflation and loss of rent cover.
What is the usual basis of measurement for building reinstatement valuations?
The usual basis of measurement is to use gross internal areas for commercial properties, by reference to the RICS Building Cost Information Service (BCIS).
What is the key law introduced by the Insurance Act 2016?
The Insurance Act 2016 introduced more accountability for insurers, responsibilities to policyholders to provide all relevant information, and an aim to reduce claims.
When did RICS become a Designated Professional Body for insurance matters?
RICS became a Designated Professional Body for insurance matters in February 2005.
What is Insurance Premium Tax (IPT)?
Insurance Premium Tax (IPT) is levied on premiums.
What should property managers consider for empty buildings?
Property managers should inform insurers that the building is empty and note their requirements, maintain the fabric of the building, obtain an EPC, clear combustible material, conduct regular inspections, and more.
What are the two fundamental principles of rent collection?
The two fundamental principles are accuracy of information and timing.
When is rent usually paid?
Rent is usually paid quarterly in advance on the usual English, Welsh, and Irish quarter days: 25th March, 24th June, 29th September, and 25th December.
What should be checked regarding lease terms for rent collection?
Check terms of the lease for timing of payments and interest on arrears, usually at an agreed percentage over Bank base rate.
What is the easiest collection method for rent?
The easiest collection method is by bank direct debit.
What must client accounting procedures comply with?
Client accounting procedures must comply with current RICS regulations.
What should be avoided to prevent waiving rights of forfeiture?
Check the system in place to avoid circumstances when rent should not be collected.
What is important to know about accepting rent from a tenant whose lease has expired?
Be careful about accepting rent from a tenant whose lease has expired, as this may create a new protected tenancy.
What is the difference between standing orders and direct debits?
A standing order arrangement can only take out a previously agreed amount of money, whereas a direct debit can take any amount from the account.
