Propery Management - Summary Of Experience Flashcards
Tell me what you know about the RICS Guidance Note on Commercial Property Management in England & Wales, 2011
This guidance note is a guide to best practice for commercial property managers containing a lot of useful information.
It focuses on how a property manager can be efficient, effective and accountable to their client and comply with statue law.
It states that primary duty of care is to the landlord, the client and gives specific advice including property manager’s core duties on rent collection, service charges, managing properties and health & safety.
What is the RICS document on Management and what does it state?
The RICS produced a Professional Statement Real Estate Management, 2016.
This document outlines the principles that share the culture of fairness and transparency that underpin the activities by real estate managers.
It is a mandatory statement and is aimed at both commercial and residential property managers.
What are the 12 principles of the RICS Professional Statement - Real Estate Management, 2016
1) Act in an honest, fair, transparent and professional manner.
2) Carry out work with due skill, care and diligence.
3) Ensure Clients are provided with terms of business that are fair and clear.
4) Do your utmost to avoid conflicts of interests.
5) Not to discriminate
6) Communications with clients are fair,decent, clear and transparent.
7) All advertising and marketing material is honest and truthful.
8) Any client money is held separately and covered by appropriate insurance
9) Hold appropriate PII insurance.
10) Make it clear that identity of your client.
11) Give realistic assessments of prices/rents/financial costs.
12) Ensure all meetings and inspections are carried out in accordance with clients wishes, with regard for personal safety.
Are the RICS doing anything to amend this Professional Statement / Guidance Note?
Yes, the RICS is currently working on a new practical professional standard in both property management and property agency for members and firms in the UK.
What are some of the key factors that drive good landlord and tenant relationships?
Honesty and professionalism
Good and clear communication from the outset.
Good payment of monies due under the terms of the lease.
Quiet enjoyment from landlord.
What are some of the legal requirements for a multi-occupied property?
Both landlord and tenants have statutory obligations which need following and may vary depending on the terms of the lease.
Some of the legal obligations / requirements could include:
- Fire Risk Assessment
- Workplace Risk Assessment
- Fire Evacuation Plan
- Fire Drills
- Electrical Installation Certificate Reports
- Energy Performance Certificates.
- Gas Safety Certificates if applicable
Tell me what you know about Alienation?
In the first instance, it is always appropriate to read the lease before tackling any queries regarding Alienation.
Leases can have an absolute, open or restrictive (qualified) alienation clause:
- Either allowing alienation (open)
- Subject to some conditions (qualified)
- Not allowing a sub-letting or assignment (absolute)
Usual clauses state that the landlords consent is not to be reasonably withheld or delayed.
What are some of the reasons to sub-let, rather than assign the lease?
- Depends on the requirements of the lease.
- Sub-let may relate to part of the demise and not the whole.
- If the market rent is higher than the passing rent (face rent) then there is a profit rent.
- If the tenant wants to re-occupy in the future
- The new party is of a lesser covenant.
What actions are needed to be undertaken when dealing with an application for consent to assign or sub-let?
It again is prudent to read the lease beforehand.
As a surveyor, I would ask myself some of the following questions:
- Will the T give an undertaking for the surveyor’s fees & legal costs.
- Is the proposed rent the market rent and same as the passing rent?
- What is the strength of covenant of the proposed new tenant?
- Has a rent deposit been agreed?
- Is there an AGA clause?
How did you ensure temporary safety of the building (East Ham Example)?
I actually attended site myself as soon as I heard about the break in and was in attendance until the contractors turned up which was approximately 1.5 hours. I ensured the CCTV was working (which is was,) occupiers were aware.
How often do Flue Cleaning Certificates (TR19) need to be produced?
Flue Cleaning Certificates are mandatory and can be a very severe risk if not treated properly.
The advice is that if you are a busy kitchen then cleaning should be undertaken every 3 months, less busy establishments need to be cleaned every 6 months.
Tell me what you know about the Landlord & Tenant (Covenants) Act 1995?
- This act relates to the assignment of leases.
- Came into force on 1st January 1996
- The Act abolished privity of contract for new leases.
- It gave landlords more scope for setting conditions regarding the approval of an assignee.
- It introduced Authorised Guarantee Agreements (AGA’s) for the most recent former tenant to guarantee the lease obligations of the immediate assignee as a voluntary arrangement to be agreed.
What do you know about Licence for Alterations?
- A Licence To Alter needs to be completed before the works commence.
- Has two useful functions: to protect the parties at rent review and dilaps at the end of the lease.
- The Licence must clearly document the works agreed.
Why did you advise for the tenants to send you their flue certificates?
I advised this so we had document records and evidence that tenants had their certificates. This led us to be able to manage this more effectively by creating a schedule of when specific tenants certificates were due to expire. This led us to be able to stay on top of the situation.
Tell me what you know about dilapidations?
In the first instance, a surveyor should always read the lease.
The negotiations take place at the lease expiry to bring the property back to its condition at the start of the lease assuming there is a repairing liability.
There are THREE forms of Dilaps Schedules.
What are the THREE forms of dilaps schedules?
1) Interim Schedule - served by the landlord or tenant during the lease, with at least 3 years remaining.
2) Terminal Schedule - served normally in last 3 years of the lease.
3) Final Schedule - served at or after the lease expiry / break clause date when the tenant is out of occupation and the landlord wants to agree a claim for damages.
What is typical format of a schedule of dilaps?
- Outline repairing obligations
- State the remedy and cost of the breach
- Loss of rent, if appropriate over period to do the works.
- Fees + VAT for the claim for surveyors and lawyers.
- Negotiations conducted on a without prejudice basis until agreement reached.
- If agreement not reached, landlords surveyors may be required to prepare a Scott Schedule for the Court, setting out a summary of the landlords and tenant’s position.
What does the RICS Guidance Note on Dilapidations, 2016 aim to do?
This document aims to reduce claims between landlord and tenants. Some key points include:
- Substantial guidance on diminution valuations.
- Relates to interim and final claims in commercial property.
- Emphasises the importance of a careful and considered estimate of loss.
- Both parties are kept to the agreed timescales.
What are the reasons why a Dilaps Settlement is not agreed?
- When the lease is not on full repairing terms.
- Reinstatement is not required by the landlord.
- If a Schedule Of Condition limits the repairing liability.
- If the building is to be demolished.
- Tenant may have gone into administration.
- Agreement between L & T to roll over the claim.
Tell me what you know about Insurance in relation to Property Management?
- Insurance is usually the responsibility of the landlord to arrange and then re-charge the tenant based on a percentage in accordance with the lease.
- Covers fire, storm, flood, subsidence, loss of rent and service charge, theft, terrorism, public liability etc)
- Insurance Act 2016 is the key law.
- The RICS became a Designated Professional Body for insurance matters in February 2005.
What actions may you need to take in respect to an Empty Property?
- Notify Insurers.
- Obtain an EPC
- Clear the building of any combustible material.
- Undertake and record regular inspections.
- Seal up letterbox.
- Arrange security and decommission services.
What are the TWO fundamental principles of rent collection ?
1) Accuracy of information
2) Timing
What are the appropriate options to consider in the event you are unable to secure payment?
1) Court proceedings
2) Use of rent deposit
3) Pursue former tenants and guarantors.
4) Serve a statutory demand.
5) Commercial rent arrears recovery scheme
6) Forfeit the lease
7) Negotiate a payment plan
8) Agree another acceptable arrangement.
Explain the court proceedings in respect to rent default?
Landlord could obtain a court judgement (usually County Court) and then secure payment of arrears.
Slow process and can be more costly.
Explain the using a rent deposit in respect to rent default?
If available, the landlord could withdraw money owed from a rent deposit to settle the arrears.
Explain pursuing former tenants and guarantors in respect to rent default?
Check to see if there is an AGA in place or any former tenant if the lease was granted before 1 January 1996.
Section 17 of the Landlord and Tenant (Covenants) Act 1995 sets out a strict timetable for the recovery of rent arrears from an assignor within 6 months.
Explain serving a statutory demand in respect to rent default?
This is a preliminary step to pursuing bankruptcy or winding-up proceedings. This can put pressure on a tenant to pay arrears.
Advisable only when there is no dispute about the level of arrears.
The tenant has 21 days to pay the arrears.
Explain the main points of the CRAR Scheme?
- The scheme is available only to commercial property landlords where a minimum level of rent is due under a commercial lease.
- There is no minimum amount of arrears
- Purely for commercial premises.
- Can only be used for basic rent demanded plus VAT and interest payable.
What is the timeline in relation to CRAR?
- Minimum of 7 days unpaid rent
- Minimum of 7 clear days warning notice
- Enforcement agents visit.
- 2 clear days to follow
- Re-entry by enforcement agent to seize goods
- Allow 7 clear days before sale of goods.
- Fees must be specified on the entry notice.
What do you know about Forfeiture?
- Clause in the lease allows the landlord to re-enter the property and gain possession for a breach of lease.
- There must be a forfeiture clause in the lease.
- Rent must have been demanded properly.
- The lease is forfeited by the landlord re-entering the property.
Explain Section 6 of the Law of Distraint Amendment Act, 1908?
- This allows the landlord to serve a notice to ensure that any sub-tenant’s rent paid for any arrears due from the tenant can be received by the superior landlord.
- The notice informs the sub tenant that the head tenant is in arrears.
Explain Section 17 of the Landlord and Tenant (Covenants) Act 1995?
This requires the Landlord to act quickly when tenants fall into arrears.
They must serve a Section 17 Notice on any former tenant and their guarantors within 6 months of the start of the arrears.
Scottish & Newcastle plc v Raguz (2017) outcome means landlords have to serve s.17 notices in respect of an undetermined uplift.
Talk to me what you know on Restructuring Leases / Lease Engineering?
Many landlords consider lease ‘engineering’ to maintain value in their investment or retain a tenant.
Examples may include:
- Granting a longer lease in return for a lower rent or RFP.
- Arranging a Company Voluntary Arrangement (CVA) with a tenant.
- Agree to a monthly payment of rent.
- Insertion or removal of break clauses.
Seek advice from solicitor
What is a CVA?
A CVA is a Company Voluntary Arrangement and is a legally binding agreement between a company and its creditors for the company to pay off its debts and liabilities.
CVAs allow the business to continue trading whilst repaying its debt.
What is the definition of repair?
‘The meaning of repair is found in case law”
Key principles which have emerged from cases such as Ravenseft Properties v Davstone (Holdings) Ltd (1978) are:
- Liability cannot arise in the absence of repair.
- Repair is distinct from renewal - a tenant cannot be expected to hand back a wholly different premises.
- Tenants may not be responsible for inherent defects.
- Repair is not an improvement (P. Robert’s, E.G. 2007)
- An effective FRI lease is when the landlord is responsible for the repairs & re-charges via the service charge.
What are the FOUR main options open to a landlord to deal with a tenant not repairing their property?
1) Serve a repair notice
2) Forfeit the lease
3) Serve an interim Schedule of Dilapidations
4) Do the works and charge the tenant.
Explain what a Notice to Repair is?
Served under Section 146 of the Law of Property Act 1925
The notice sets out the following information:
- Details of the repairing or decorating breach which has occurred.
- The timescale allowed to remedy the breach.
- A course of action proposed if the tenant fails to remedy the breach.
Explain what you know about Forfeiture?
There must be a forfeiture clause in the lease.
A landlord wishing to forfeit the lease for disrepair will have to serve a Section 146 notice on the tenant.
The Section 146 notice should state why the tenant is in breach of the repair covenant.
The tenant must be given a reasonable time to undertake the works.
Does the Landlord have a right to enter the tenants premises and carry out the works?
Each case would be dependent on what the lease says.
The leading case is Jervis v Harris (1996).
This case gives the landlord a right to pursue an effective remedy against defaulting tenants, to ensure that the premises are kept in good repair for the duration of the lease.
When should a Jervis v Harris clause be used when repairs are required?
- When a tenant is insolvent
- Where the landlord wants the lease and rent to continue.
- The landlord wants to retain control to carry out repair works.
- Where the threat of entry may compel the tenant to do the work.
Tell me what you know about the Leasehold Property (Repairs) Act 1938?
- This Act applies to leases granted for a term of 7 years or more, and has at least 3 years until the lease expiry.
- It aims to protect tenants against onerous schedules of dilapidations.
- The Act requires landlords to serve a Section 146 notice on the tenant.
When can the Court permit enforcement of the repairing covenant in line with the Leasehold Property (Repairs) Act 1938?
Only if the landlord can prove one of the FOUR following points:
1) Immediate remedy is necessary to prevent substantial diminution in the property reversion value.
2) Immediate remedy is necessary to comply with current legislation.
3) If the tenant does not occupy the whole property, immediate remedy is required in the interests of another occupier.
4) The breach is capable of immediate remedy at a small cost compared with the consequences of postponement.
What is a Planned Maintenance Programme?
Maintanence activity supervised by a property manager or building surveyor.
What THREE stages may a PMP include?
1) Cyclical Maintenance - regular activities that are carried out irrespective of the condition of the building e.g. servicing plant, health and safety maintenance and redecoration.
2) Preventative Maintenance - dependant on a condition survey prepared by a building surveyor which forecasts future repair needs and plans the timetable for undertaking work.
3) Responsive Maintenance - this is initiated by the building occupier, such as repairing a leak unblocking drains or undertaking some remedial works to the building.
What is the aim of RICS Professional Standard - Service Charges in Commercial Property, 2018?
This professional standard aims to :
- Improve general standards and promote best practice, uniformity, fairness and transparency in the management and administration of service charges in commercial property.
- Ensure timely issue of budgets and year-end certificates.
- Reduce causes of disputes and to provide guidance on resolution
NOTE - RICS plan to publish a new Professional Standard on Service Charges shortly following a consultation process.
What are the FOUR usual methods of apportionment in respect to Service Charges?
1) Floor area
2) Fixed percentages outlined in the leases.
3) Rateable value - difficult if RVs change or are appealed.
4) Weighted floor area e.g. department store.
What are the various types of insolvency ?
Administration - administrator appointed by creditors (Enterprise Act 2002) to rescue an insolvent company. (Most common ‘rescue’ option.
Receivership - Receiver appointed by Law of Property Act by creditors to realise assets to repay debts.
Company Voluntary Arrangements (CVA) - Voluntary arrangement with creditors as to how the debts will be settled.
Voluntary liquidation
Bankruptcy
What would you do if a tenant becomes insolvent?
- Inform client
- Consider taking legal action
- Read the lease - see if there is a rent deposit held or guarantor in place.
- Make early contact with the administrator / receiver.
- Check the amount of monies owed in rent, SC & insurance.
- Ensure the property is insured and inform insurers that the units is vacant.
- Submit a claim for arrears.
- Consider preparing a schedule of dilaps.
- Consider the position regarding empty rates.
- Consider reletting the premises.
What are the 4P’s (Holistic)?
People
Place
Price
Promotion
What are the different types of maintenance?
Reactive - repair emergencies e.g. leaks, storm damage
Planned - regular condition checks
Cost reduction - utilities switching e.g.
Can you can interest on rent arrears?
I need to check the lease in the first instance.
If so, the normal charge is 2-4% of the base rate after 14 days of non payment.
What is a Section 17 notice of the L&T Covenants Act 1995?
Section 17 releases a former tenant and their guarantor from liability unless the Landlord has served a s.17 notice which specifies the amounts due within 6 months of the tenant defaulting.
What is a Section 146 notice of the Law and Property Act 1925?
A notice served by the landlord who wishes to commence forfeiture proceedings against a leaseholder following a breach of lease.
What two choices are there before the lease expiry date in respect to dilapidations?
- Tenant can do the agreed works or
- Tenant can pay a sum to the landlord to undertake the works. Breach + Loss + Evidence = Recovery.
What does Section 18 of the Landlord and Tenant Act 1927 state?
States that the dilapidations claim is limited to either the cost of the works or the difference in value of the property upon possession had the covenants to repair & decorate not been undertaken.
What does Section 19 of the Landlord and Tenant Act 1927 state?
If a lease prohibits improvements being made to a property without Landlord’s consent, Section 19 of the Act imposes a proviso that such consent cannot be unreasonably withheld.
If s.19 procedures have been followed, the landlord may be obliged to pay compensation for alterations that may constitute improvements.
What is a Statutory Demand (Remedies for Rent Default)
A request for payment where a debt is undisputed.
What is a Sinking Fund ?
A fund to cover costs that occur infrequently.
What do you know about the Leasehold Property (Repairs) Act 1938?
This act applies to leases granted for a term of 7 years or more and has at least 3 years until lease expiry.
It aims to protect tenants against onerous interim schedules of dilapidations.
The Act requires landlords to serve a Section 146 notice on the tenant.
What is the key RICS guidance for property management?
Commercial property management in England and Wales 2nd Edition, Guidance Note
Real Estate Management 3rd Edition, Professional Statement
Service charges in commercial property 1st edition, Professional Standard
Property agency and management principles, Professional Standard
What are some of the statutory obligations for a property manager to be aware of?
Asbestos management
Business rates
Contamination
Equality Act 2010
EPCs and MEES
Fire safety
H&S
Legionnaires disease
Occupiers liability
PAT Testing
Planning
Waste Management
What does the Cost Of Leases Act 1958 say?
Unless agreed in writing, a party to a lease is under no obligation to pay all or part of other party’s costs i.e. each party pays their own costs.
What are the usual quarter dates?
25 Mar, 24 June, 29 Sept, 25 Dec
When invoicing for rent, what should you check for?
Timing of payments
Interest on arrears
VAT position
If service charge is reserved as rent
Circumstances where rent should not be accepted.
When might you not recommend accepting a rent payment?
To avoid waiving right to forfeit.
Where an outside the act lease has expired as it may create security of tenure.
What are the warning signs for rent arrears?
Bounced cheques
Tenant ceasing trading
Persistent late payment
Arrival of post-dated cheques
What are some remedies for rent default?
Payment plan
Statutory demand
CRAR
Use rent deposit
Pursue former tenant (s) / guarantor (s)
Forfeiture
What type of notice can be used to pursue a former tenant or guarantor?
Section 17 - Landlord & Tenant (Covenants) Act 1995
What is the timescale for a Section 17 notice to be served?
6 months
What is the limit of debt for a statutory demand to be issued?
£750
When did CRAR come into force?
April 2014
What did CRAR abolish?
Common Law of Distress (Distraint)
What sums can CRAR not be used for ?
Service Charge or Insurance.
Only rent
How long does the rent need to have been outstanding for to use CRAR?
7 days
Can an enforcement agent enter through a window?
No - only an open/unlocked door
Can forfeiture be implied?
No - it must be an express provision in a lease.
What is the effect of forfeiture?
A landlord can re-enter and gain possession for breach of lease.
What RICS guidance relates to service charges?
Service chargers in commercial property, Professional Standard - 1st edition (September 2018) - effective from 1 April 2019
What is the main change in the new Professional Statement (Service Charges)
Mandatory not just been practice.
What should service charges be?
Not for profit, not for loss
Can the RICS Service Charge Professional Standard override the terms of a lease?
No - but it can be used to interpret a lease.
What information must be provided to tenants if a service charge is operated?
Service charge budgets, including appropriate explanatory commentary (annually)
Service charge apportionment matrix (annually)
Approved set of service charge accounts (annually)
If a service charge dispute exists, what sums can a tenant withhold?
Only service charge sums in dispute
What is an accrual?
Expenses incurred in a period for which no invoice has been received at the period end.
What is a balancing charge?
Difference between an individual tenants apportionment of expenditure and on-account service charges demanded for an accounting period.
What is an on-account service charge?
An estimated charge raised in advance and anticipation of the final service charge liability, calculated from the service charge budget.
What does PPM stand for ?
Planned Preventative Maintenance
What is PPM?
Maintenance performed purposely and regularly to keep the fabric, facilities, plant and equipment of a building in satisfactory operating condition.
How often is a PPM usually prepared?
5-10 years in advance but reviewed and updated regularly
What is the purpose of a reserve fund?
To meet anticipated future costs of maintenance and upkeep in order to avoid fluctuations in the amount of service charge payable each year.
What is the purpose of a sinking fund?
To periodically set aside money for the replacement of a wasting asset.
What does SICC stand for?
Standard Industry Cost Classifications
Why might an occupier decide to sublet rather than assign a lease?
Requirement of the lease
Relates to part not whole of the demise
If there is a profit rent
If the tenant might want to re-occupy in future.
What duty does the Landlord & Tenant 1988 impose on a landlord?
To deal with consents diligently and within a reasonable time
When did the Landlord & Tenant (Covenants) Act 1995 come into force?
1 January 1996
What did the Landlord & Tenant (Covenants) Act 1995 abolish?
Privity of contract
What is the position in an ‘old’ pre 1 January 1996 lease?
Original tenant remains liable until expiry
What should you request if considering a tenant’s application to alter?
Full plans and specification (in line with the terms of the lease)
Undertaking for surveyors and legal costs
Finance bond held by the landlord (if appropriate)
Whether planning permission or Building Regulations approval is required.
Compliance with legislation e.g Equality Act 2010 & CDM 2015
Risk Assessment & Method Statement (RAMS)
What does a breach of repairing covenant require?
Both disrepair and an obligation to repair
What is the effect of a Section 146 Law of Property Act 1925 notice?
Served on the tenant during the lease to remedy a specific repairing or decorating breach
What is the impact of a Jarvis v Harris clause?
Express right for a landlord to enter, carry out repairs and recover the cost from the tenant as debt, not damages.
What is the impact of the Leasehold (Property) Repairs Act 1938?
Protects tenants by limiting a landlord’s right to claim damages or forfeiture for disrepair during a tenancy
What does the 1938 Act apply to?
Leases over 7 years with more than 3 years to run
What is a Schedule of Condition?
Limits a tenants repairing liability in respect of agreed items of disrepair during a lease
What is the basis of a typical full insuring clause?
Landlord insurers, tenant reimburses
What is an insured risk?
Risks that a landlord is obligated to insure against.
What happens if a property is damaged by an uninsured risk?
Tenant responsible for remedying damage under repairing obligations, unless this is limited under the lease.
Tenant continues to pay rent, despite the building being damaged and being potentially uninhabitable.
What are typical examples of uninsured risks?
Flooding
Subsidence
Terrorism
Heave
How have you advised on the preparation and presentation of reports relating to property management?
Property Management Reporting
- Prior to reporting, I would conduct a thorough inspection of the property, taking photographs and noting any defects advising the client throughout. I would ensure that my report is throughly detailed including identifying issues, advising on remedial action and whether it is prudent to seek further professional advice. With regard to presenting reports, I would advise my client of a reporting template to ensure they are happy with what will be included. If so, I would conduct the report, discuss this with my supervisor/director and issue the report to the client.
Accounting Reports
- Alongside my company’s internal accounts team, we would ensure all banks are reconciled and report on expenditure, monies received, monies demand, any arrears and whether any arrears have been carried forward from the previous quarter. If a tenant is in arrears then we would advise within our report on the reasonable next steps to take to recover the arrears.
How have you carried out all relevant statutory requirements or other responsibilities, in case of larger portfolios of property ?
With regard to common parts where we are responsible for managing, I would undertake enquiries with specialist contractors to provide quotations on undertaking the specific statue requirements such as fire risk assessments, workplace risk assessments, electrical certificates, gas safety certificates where applicable, flu cleaning legionella risk assessments and DDA surveys. Once I received instructions from my client to proceed I would I would instruct contractors to carry out the work and provide a detailed report on any recommendations or requirements following from the report.
I have undertaken this task for a large portfolio of Office property, where the tenants full repairing and insuring leases meaning that the tenants were responsible for that statutory requirements under the terms of the lease. I wrote a formal letter to all the tenants requesting statutory documentation and listed what was required , I gave them a deadline of three weeks to provide this information otherwise we would look to carry out the work ourselves and recover the costs from the tenant as outlined under the terms of the lease.
How have you provided strategic advice on property management matters and recommendations on the options available for the property?
I provided advice to a client where an office tenant was in substantial arrears, I had previously advised that we should open a dialogue with the tenant to discuss a payment plan to reduce the arrears over a six month period, the tenant did not agree to our proposal and therefore I advised my client to enforce CRAR. Given the rent was over seven days old, I advise my client that we should engage a bailiff to provide a notice of enforcement, giving seven days notice of that enforcement.
How have you dealt with disputes?
My company took over the management of a property in East Ham, and one of the office. Tenants had a service charge dispute regarding the previous service charge year. My client did not want to instruct solicitors to deal with this, so instructed myself to enter into a dialogue with the tenant and I alongside my companies in house accounts department, dealt with a dispute by undertaking reconciliations of the previous year service charge expenditure and reviewing alongside the tenant what they had paid ensuring that the closing balance was £0.00.
How have you provided advice as to alternative dispute resolution options in the event of a breakdown of negotiations?
I haven’t undertaken this in practice, but if I was to advise my client as to alternative dispute resolution options in the event of a breakdown in negotiations, I would first review the lease to establish the method of alternative dispute resolution. Depending on what the lease stated, I would advise my client accordingly, whilst also advising them to seek legal advice.
What necessary actions have you taken to protect your client’s position?
With regard to an insurance renewal, I noticed that on the original quotation provided by insurance brokers that the loss of rent for an indemnity period of 36 months was below the total rent that would be received with a fully let building. I therefore took the necessary action to increase this amount to the amount that would be received with a fully let building to protect my clients position for potential loss of rent claim.
Flue Cleaning - if scaffolding hadn’t been present in the lightwell, how would you dealt with the flue cleaning?
I would have advised my client for a flue cleaning professional to attend site to carry out a survey and provide necessary recommendations on how to address the issue.
I would have then evaluated these options and presented my thoughts to the client.
What modifications were required to the scaffolding to able access to flues?
We needed to add two additional towers on the east side of the building to ensure that it became easier for contractors to access the flues. As the original scaffolding provided a hazard if the flues on the east side of the building were to be accessed.
What were the risks of the flues not been cleaned?
Build up of fat which could lead to a fire.
Navigation Street - What was included within the service charge?
Management Fees
Accounting Fees
Cleaning of common areas
Window Cleaning
Materials and Toiletries
Lift Safety Maintenance
Pest Control
Waste Management
Electricity for common areas
Staff Costs - Site Management
How did you establish year expenditure?
When preparing the new service charge budget, I would request the service charge transaction lists well advance to review. From these lists, I was able to determine how much expenditure was spent in the specific areas under the budget allowed me to make a decision on whether to increase or decrease a specific area of the budget.
What planned works were being proposed for the upcoming year?
I had advised and planned for a new section of flat roof to be replaced given historic leaks. I had received advice from a building surveyor on this before advising my client. My advice included all necessary timescales and costs involved.
How did you establish the costs of those works.
I initially requested for two building surveyors to attend, survey, provide recommendations and costs. Once these were received, I reviewed the two surveys and advised my client on who I thought was most cost effective and professional to undertake the work.
East Ham - why did you advise a PPMP should be put in place?
Given my clients, head lease expires in 2031 we were pre-empting a claim for dilapidations, and therefore I thought a PPMP carried out by a building surveyor would be in my clients best interest to phase the work over a period of time (5 years) to ensure that my client isn’t hit with a large claim at the end of the head lease.
What did you advise should be included within the PPMP?
I, first of all reviewed the head lease to review what my client was responsible for with regards to repairing and maintaining under the terms of the lease. I consulted with a building surveyor and requested whether he wasn’t in agreement with what I was advising to be included which was external windows, common parts corridor, rear balcony and the roof.
Tell me about a contract you have set up with an external service provider.
I have recently set up a lift maintenance contract with a specialist goods and services lift maintenance company to include 6 services of 4 x goods and services lifts per annum and to include a minimum response time to the building in the event of an entrapment or emergency breakdown. Response time to be 1.5 hours to site from call out.
Tell me about a reactive/proactive management plan you have set up & any guidance you used?
I have had a PPMP carried out at a commercial mixed use property and I referred to the Planned Preventative Maintenance of Commercial and Residential Property Global Guidance Note (Feb 2022) effective May 2022
Tell me about a challenge you have faced and how you overcame it?
When requesting tenants for the flue cleaning certificates lot of tenants did not provide the information I was requesting by therefore engaged a flue cleaning company to attend the premises and undertake the flue cleaning themselves and recover the costs from the tenants as per the terms of the lease.e
Scrutton Street - What H&S compliance were you responsible for?
I was responsible for H&S compliance in the communal areas of the property which included;
Fire Risk Assessment of Common Parts
Legionella Risk Assessment
DDA Compliance
Pest Control
Gas Safety Certificate
What level of insurance was required for the property?
Property Owners Insurance
Terrorism Insurance
Loss of Rent Cover
How do you manage the relationship with the occupiers?
When a new tent comes into the building, I ensure I always meet with their representative face-to-face and hand over a tenant guidance pack containing information on the building and my contact details. I ensure that they have my contact details and if they have any questions can contact me at any time.
Throughout the tenancy, when I inspect the property, I will make a conscious effort to go and see occupiers, even if it is brief, so they can put a face to a name And inform me of any problems they may have. I find this builds very strong working relationships.
East Ham - what damage had been done to the property?
The front door to the offices which was accessed via street level had been broken into, smashed glass and the lock at been broken. I had to act quickly ensuring the safety of the property and the common areas was addressed and I achieved this by getting company to site within 1.5 hours to remove the existing door and provide a secure replacement with a much stronger locking mechanism.
How did you ensure the site was secured after inspecting the damage? (EAST HAM BROKEN DOOR)
I stayed on site until the contractor turned up to replace the broken door and oversaw the replacement works to confirm to all occupiers and my client (with photographs) that the works had been completed and the property was secure.
What did you need to do to proceed with the insurance claim?
Insurers required photographs of the damage, when the damage occurred and when it was first noticed.
From here they required the invoice of the works given this was an emergency to the safety of the building, insurers did not require two cost estimates and were happy for me to commence with the works.
All documents and evidence were submitted to insurance brokers.
What was the outcome after informing the police and requesting CCTV?
CCTV was never provided, but the police ensured me that they had evidence to suspect who damaged the property and attempted to break into the property and wrote to me to state they had opened an investigation. This type of damage has not happened since.
