Property Management - Level 1 Flashcards
What is the RICS Professional Statement: Real Estate Management, 2016?
It outlines the principles that share the culture of fairness and transparency that underpin the activities by real estate managers. It is mandatory.
Some of the Principles:
1 - Act in a honest, fair and transparent manner
2 - Carry out work with due skill, care and diligence and ensure competency
3 - Ensure clients are provided with terms of business that are clear, with CHP
4 - Do everything to avoid conflicts of interest and if there are, manage them properly
5 - Not to discriminate unfairly in any dealings
6 - All communications with clients are fair, decent, clear and timely
7 - All advertising and marketing material is honest and truthful
8 - Client money held separately and covered by appropriate insurance
9 - Hold appropriate PII cover
What are the different types of advice given for a different variety of aspects of property management?
Ethics - my duty of care as a property manager, dealing with conflicts of interest and corporate social responsibility
Managing real estate - collection of rent, repairs, insurance and service charges
Safety and security - confidentiality, data protection, H&S and personal safety
What is the RICS Guidance Note on Commercial Property Management?
Guide to best practice for commercial property management, focusing on how PMs can be efficient, and effective to their client. Gives guidance on the PM’s duties of rent collection, service charges and managing buildings.
How would you find the alienation clause?
Reading the lease
What are alterations?
Alterations are carried out by a tenant during the lease. They are usually approved in writing by the landlord prior to undertaking works.
What is a licence for alterations?
Documents agreed works to be carried out by the tenant. It is to be completed before works commence.
How would you deal with a licence for alteration application?
- Read the lease - see if the tenant requires Landlord approval for works
- Ask for plans/specification
- Obtain an undertaking for the surveyor’s and legal costs
- Check compliance with Equality Act and if there is a risk assessment and method statement
- Check long-term impact on the property- and provide recommendation to the client.
- Liaise with solicitors and the landlord to complete the application
- Inspect property once works have completed
What is the Landlord and Tenant Act 1927?
Section 19 - States that landlord consent cannot be unreasonably held. Compensation payable if not followed.
What are dilapidations?
These are negotiations at the end of the lease to bring the property back to its condition before the tenant occupied the space.
What would you do if a tenant is vacating the property?
- Read the lease for the reinstatement obligations for both parties
- Check for licenses for alterations
- Liaise with building surveyors to prepare schedule
- Liaise solicitors to serve Section 146 (Law of Property Act 1925) with schedule
What are the different options for dilapidations?
- Tenant can do works
- Tenant can pay sum to the landlord to undergo the works
What are the different types of schedules for dilapidations?
- Interim - during the lease with at least 3 years remaining
- Terminal - Last 3 years of the lease
- Final - Expiry of the lease
What is the RICS Professional Standard for Dilapidations?
RICS Professional Standard: 7th edn, 2016
What are the reasons why dilapidation settlements are not agreed?
- Tenant has gone into administration
- Reinstatement not required by the landlord
- If a schedule of condition limits the repairing liability
When a building is void, what should you do as a property manager?
- Tell insurers
- Maintain the fabric of the building
- Obtain an EPC
- Undertake regular inspections
- Undertake a H&S and fire risk assessment
- Inform council for payment of empty rates
- Seal letter box
