SRC - SOE Questions Flashcards
Landlord Verification - Problem?
The problem was that my client was facing persistent delays when trying to contact landlords for access to their properties for regular maintenance works due to inaccurate landlord details on their system.
Resulting in increased costs for my client (abortive costs).
Landlord Verification - Strategy and implementation.
To address this problem we review the portfolio of properties and different assigned a priority levels to each site in order to target properties for access information verification.
- Properties were facing consistent delays.
- Properties that required access frequently (2 or more visits a year)
- Properties that were owned by portfolio landlords (i.e local authorities).
We contacted the properties in order of priority to verify the access details and ensure they were up to date on my clients system.
Landlord verification: Outcome
Verified a large number of sites in accordance with the strategy therefore increasing the accuracy of the clients database and reduced number of aborted site visits and improved landlord and tenant relations while doing so.
Freehold Acquisition: Problem/ objective
(REDUCED LIABILITIES and IMPROVE SECURITY)
The client who is a tower hosting company wanted to reduce their rental liabilities, remove restrictive covenants and increase the security of their infrastructure for their customers.
Freehold Acquisition: Strategy
(ANALYSED AND IDENTIFIED)
From the sites provided from the customer I analysed them to identify sites which had a mixture of: restrictive covenants, High passing rents medium unexpired terms and target them to acquire.
(APROACHED AND NEGOTIATED)
Having targeted the sites, I approached landlords to gauged their interest, and negotiated the terms for a freehold site.
This included informing them what would happen to their rents at the end of the term and offer them a premium to buy the freehold.
Freehold acquisition: Outcome
(PURCHASED THE FREEHOLD)
I was able to successfully purchase some of the some sites removing the rental liabilities and the restrictive covenants.
Risk Management: Problem/ Objective
Client was receiving a large number of notice to quit, this was an issue since they needed to maintain the infrastructure (in that specific location) for their customers and there was a risk they would have to move (Which would result in unwanted OPEX and CAPEX).
Risk Management: Strategy + Advice
Strategy included a 3 step approach to dealing with notices:
1. Check the validity and look for ways to oppose with the tenant.
2.Ask the landlord to relocate on on their land.
3. Search the local area and find sites to acquire - Then engage and acquire the sites.
Risk Management: Outcome
The project is ongoing, but we have had success in achieving the goals:
1. resisting notices and staying in situ (Saved on CAPEX).
2. Relocated onto alternative land proposed by the landlord. (At low rents saving OPEX)
3. Acquired sites in the local area which the customers moved to. (Lower OPEX)
All of these meant that their customers were able to benefit from their infrastructure and remained customers.
Rent review project: Objective/ problem
Client is an occupier has a lot of liability on leases which are coming up for review.
Objective was to save my client money at these reviews by looking across the portfolio.
Rent Review: Strategy
Identify the clients requirements for the sites individually. Undertake rent review report to determine the market rent for each property at review. Make recommendations of the way to deal with the rent reviews.
I.e re-gearing, breaking or negotiating other terms.
Outcome and recommendations
Based on tenant requirements.
We recommended re-gearing of properties which where in great use to ensure security of tenure and reduce costs (in exchanged for removing break).
Advised there were situations to leverage under-rented capped properties which were not utilised in order to gain nil uplifts on other properties with the landlord.
Ultimately these suggestions would save the client money if they acted on our advice.
We were not instructed to undertake the rent reviews.
