Summary Of Experience Property Management Flashcards
Level 1
how do you maintain a positive landlord and tenant relationship?
- regular property inspections
- quarterly tenant meetings
- issuing all budget and reconciliation in a adequate time frame
- providing good, quality service in relation to works
Level 1
What are the 9 SC principles?
- All expenditure should be recovered in line with lease terms
- No more than 100% of Costs should be recovered
- Issue service charge budgets with commentary annually
- Issue expenditure report annually
- Issue service charge matrix annually
- Service charge monies must be held in a discrete bank account
- Interest earned on service charge must be credited
- Service charge dispute must only reflect actual sum in dispute
- Any service charge raised incorrectly must be fixed without delay
Level 2
Talk me through the process of offering a payment plan to the tenant and why did you do this?
- Firstly request accounts for the last three years and if it was clear losses have taken place I would advise my client to offer a payment plan
- if they were not experiencing losses and they were were deliberately not paying rent we would progress with 7 day letters / CRAR
- payment plan was completed with a side letter drawn up by solicitors once agreed with client this is to protect my clients position if the lease was assigned for example
Level 2
Can you talk me through the process of the service charge process at Threadneedle Street?
- Have a detailed call with RFM to make sure all service costs are accurate for this year and making sure we are getting the best value for money.
- Make sure the schedules are laid out correctly and all tenants are accurately paying a fair amount.
- Provided a CIF to client providing commentary of budget compared to previous year.
- Once approved, send out new demands and RICS budget template to tenants along with commentary
Level 3
Talk me through the process of subletting in Crawley?
- Read lease (alienation clause stated the under lease not be granted with rent less than the market rent)
- Request undertaking
- Request 3 years of accounts of sub tenant and review covenant strength
- Speaking to agents they stated the market rent should be £18psf
- I provided my client my recommendation and obtained consent and this is drawn up as a license to sublet.
- I reviewed the sub lease when available.
Level 3
What were the pros and cons of the sub let for your client and what was your recommendation?
Pro : won’t adversely effect the investment value of property as the head tenant is still on hook for lease terms different if assignment
Pro : great for tenant wanting short term change
Con : provides less control over their property as a third party is now in the mix
Level 3
Birchin lane LTA?
Level 3
The property in Clapham financial difficulty which led to a surrender?
- Despite payment plan this tenant was hugely struggling
- Requested company accounts to make sure losses had taken place which they had
- Client was a large institutional fund so had a more friendly stance
- Tenant provided a neighbouring occupier looking to take the lease.
- In this case a surrender was accepted as we had an occupier lined up. Otherwise market conditions would be vital before agreement.
- All covenant checks were completed and the lease was agreed.
What are the documents related to property management?
- Commercial property management 2nd edition 2011
- service charge in commercial property 1st edition 2018 (mandatory)
- asbestos RICS professional standard 2022
- code of measuring practice 2018
- dilapidations 2023
What is a statutory demand?
Preliminary procedure to a winding up proceedings
- £750 for company
- £5,000 for individual
21 days to respond.
Three options when it comes to insolvency?
- Administration (restructuring and potentially saving the company)
- Receivership (receiver is appointed to sell off assets to pay debts)
- CVA (assess the company’s affairs, develop a plan to either save the company or liquidate its assets, and provide recommendations to creditors.)
what are the average Rent per square foot?
offices london - £60-200 rent psf
industrial - £3 - £20 rent psf
retail - £50 - £1500 rent psf
Can you name some remedies for non-payment of rent?
- Payment plan
- AGA/Guarantor
- Draw down rent deposit
- CRAR
- Statutory demand
- Forfeiture
What is the legislation governing service charge budgets by the RICS and what does it set out?
- RICS Professional Statement – Service Charges in Commercial Property 2018
- Promote best practice, uniformity, fairness and transparency in the management and administration of services charged in commercial property.
What are the 3 types of break notices?
- fixed
- rolling
- conditional
