Property Management

Question 1

What options are available to the landlord where the tenant is in debt?

Answer 1

1. Talk to tenant to understand whether they can’t, won’t or needs help.
2. Payment plan.
3. Rent Deposit
4. Guarantors/ AGA
5. Sub tenant
6. CRAR
7. Former tenant if its pre 1996
8. Statutory Demand
9. Fortfeiture
10. Court

Question 2

CRAR - Commercial Rent Arrears Recovery
Legislation, notices, process, exemptions

Answer 2

Legislation
-Taking Control of Goods Regulations 2013, -Tribunals, Courts and Enforcement Act 2007

Notices
- 7 days’ written notice by certified enforcement agent is permitted to take control of goods to pay off the arrears.
- authorised subtenant 14 days notice required
-12 months to seize goods
-7 days notice of sale

Requirements
-commercial premises
- pure rent (including any VAT and interest)
- debt outstanding 7+ days.
- Not insurance or service charge.
-there is an existing written lease or a written proof of tenancy at will
- tenant is still in the property
- You do not have the right to seize your tenant’s goods yourself; they can only be seized by a certified enforcement agent
-business hours only

Exemptions
- Tools of the trade up to £1,350 in value, only applies to individual not a business.
- Items not owned by the tenant

Question 3

Can you explain how you carry out a lease interrogation and what it entails?

Answer 3

• I review the lease to identify the key clauses relating to landlord and tenant obligations, repair responsibilities, insurance, service charge, rent, alienation, breaks rights and dispute resolution.
• For example, to understand the repairing obligations, I review the demise, property, service media and common parts definitions. I then review the tenant obligations, the definition of the rent-inclusive and rent-exclusive services and the service charge schedule.

Question 4

What are the critical elements in determining landlord and tenant obligations?

Answer 4

• Critical elements include the repairing covenants, insurance responsibilities, service charge provisions, statutory compliance and rights of access.
• I use this to determine whether a lease is FRI or IRI and whether any schedules of conditions or side letters modify obligations.

Question 5

What is your approach to Alternative Dispute provisions when amicable resolutions fail?

Answer 5

• I first seek an informal resolution to avoid costly, time-consuming and potentially hostile ADR.
• If ADR is required, I refer to the lease to determine which approach is specified.
• I look for the mediator/expert witness etc on RICS approved list.

Question 6

Can you discuss your familiarity with the HSE and the Health and Safety at Work Act 1974?

Answer 6

• The HSAW 1974 set out the duty of an employer to keep their staff, visitors and contractors safe at work.
• This includes ensuring statutory compliance with fire safety, legionella, asbestos and working safely procedures such as working at height. I also ensure that all safety equipment is maintained, and documents are accessible on site.
  ________________________________________

Question 7

What is the significance of the training you undertook on Legionella safety and Fire Risk safety?

Answer 7

• It equipped me to identify risk during inspections (such as scaling on taps, lack of flushing regimes and dead legs).
• I understand the importance of regular risk assessments, record-keeping and contractor competency.
  ________________________________________

Question 8

How do you approach establishing a robust planned preventative maintenance regime (PPM)?

Answer 8

• I review the lease to understand whose obligation it is.
• If it’s the landlord:
  o We have a dedicated FM provider that tenders their contracts every 3 years to secure the best value for money.
  o Their attendance and service are monitored via the CAFHM system, and I receive regular reports on my properties.
  o I have an open dialogue with my tenants so that I can identify and address issues at an early stage.
  o I have fortnightly meetings with my dedicated FM handler where I can escalate any concerns and proactively seek updates on work.

Question 9

Can you discuss your understanding of the importance of a transparent and fair service charge budget, and how it should be based on actual costs?

Answer 9

• In line with the RICS Service Charge in Commercial Properties PS service charges should be transparent and based on actual costs.
• This is important as in line with the RICS code of ethics it is important to protect your client/tenant’s money, build trust and reduce disputes.

Question 10

How do you ensure effective communication to maintain good tenant relationships and protect the assets value?

Answer 10

• Through regular site inspections and regular tenant meetings via Zoom.
• I also provide clear lines of escalation and contact details to avoid delays in an emergency.

Question 11

Can you explain your familiarity with debt management and how it plays a role in property management?

Answer 11

• Unfortunately, tenants do experience financial difficulties from time to time. Early engagement is the best way to address issues before they snowball. This could be by email, telephone or face-to-face.
• Effective debt management protects income and supports valuation.

Question 12

What steps do you take to manage lease events effectively?

Answer 12

• I have a lease event tracker which maps progress
• Early engagement with tenants.
• I have weekly check-ins with my Regional Manager to ensure all lease events are progressing and on track, and to raise any blockages and brainstorm solutions.
• Assura produces quarterly and annual reports in advance, which I use to manage my time.
• I employ the Pareto Principle (80:20) when prioritising my workload to ensure my efforts are focused on the best returns.

Question 13

What types of properties did you manage in the Northeast of England?

Answer 13

• Multi-tenanted Primary Healthcare buildings. They contained a combination of NHS backed GPs, private healthcare, dentist, opticians, pharmacies, cafes, office and retail units.

Question 14

Can you discuss how you ensured compliance with lease obligations and health and safety regulations during site inspections?

Answer 14

• I conducted regular inspections to assess statutory documentation, PPM schedules, and physical condition.
• I reviewed fire risk assessments, legionella logs, and ensured access and signage met regulatory standards.

Question 15

Can you provide an example of a property management issue you’ve dealt with?

Answer 15

• At One Life, Middlesbrough, I identified a damaged roof escape hatch.
• I advised decommissioning, arranged an urgent survey, and coordinated remedial works via our FM provider.

Question 16

How did you manage a boundary dispute at Ancaster?

Answer 16

• I reviewed title plans and lease boundaries, engaged with our solicitors and reviewed Land Registry Titles and the Council plans.
• I conducted a site visit with the neighbouring owner with the plans to understand how their plans applied in real life.
• I facilitated a resolution that respected legal boundaries and tenant concerns.
• The new plans were agreed by both parties and updated with the Land Registry.

Question 17

What was your approach to resolving the complaint about the ivy trespass at Long Lane Surgery in Leicestershire?

Answer 17

• That ivy was encroaching on their property from the medical centre, and this was damaging their property.
• I instructed an independent survey of the issue to find the root cause. This identified that the ivy originated on their property.
• I asked them to address the issue and put right the fence at their cost. I then asked the landscaper to monitor the situation and advise if the issue returned.
• I documented this evidence on the property file along with photos.

Question 18

How did you handle the easement request from Openreach at Crompton?

Answer 18

• I arranged for the solicitor to review the plans and supporting documentation to ensure they were compliant and to identify any concerns.
• I arranged a site visit to understand the work required and the potential distribution. As the car park had to be excavated, I requested temporary alternative car parking at their costs for the tenants.
• I then arranged a tenant site visit with Openreach so that they could present the case for the works, detail the disturbance and agree a timetable sufficiently in advance to minimise the impact on their business.
• I instructed them to delay works until after the roof repairs to minimise the impact on the car parking spaces.
• I then instructed the solicitors to proceed, along with a firm long-stop date to prevent the works from overrunning.

Question 19

Can you describe the pest control issue you managed at North Ormesby in Middlesbrough, and how you resolved it?

Answer 19

• The dentist reported recurring issues with pests both externally and within his site.
• I reviewed the lease to establish responsibility, which was with the Landlord to deliver via the service charge budget.
• I arranged for Pest Control to attend and conduct a survey, which identified the source of the issue. The binstore was cleaned thoroughly, and access points were concreted over and a padlock added to the store to prevent further fly tipping.
• The binstore itself was old and degrading, so I sought quotes for a more robust store and added that to the 2026 service charge budget.

Question 20

What was your strategy for budgeting and dealing with tax obligations in the management of the properties?

Answer 20

• I used actual cost data from our FM provider and ensured VAT aligned with the lease terms.

Question 21

What process did you follow to manage the lease assignment from Lloyds Pharmacy Ltd to Parkside Crawcrook Ltd in Ryton?

Answer 21

• Firstly, I reviewed the lease to understand the rights & restrictions under the alienation clause. In line with this, I asked for evidence of the GMS funding and the new TR1 land registry form and an undertaking for the landlord fees.
• I then instructed our solicitor to draft the licence for agreement and then updated our systems.

Question 22

How did you handle rent collection and arrears management across your portfolio?

Answer 22

• Our credit control team issue and chase outstanding invoices.
• All non-responsive tenants are escalated to the Property Manager and added to the debt log, which I review weekly with Senior Management.
• Tenants that remain non-responsive are issued a letter before action. If this still falls to issue a response, then formal action is taken (such as CRAR, lease surrender, Statutory Demand, pursuing guarantors/AGA/Sub-tenants, ADR or court).

Question 23

What was the primary complaint from the tenants at Narbeth Surgery?

Answer 23

• They disputed historic service charges and the quality of the service provision.

Question 24

What strategy did you employ to resolve the service charge dispute at Narbeth Surgery?

Answer 24

• I reviewed the lease and the service charge apportionment and schedule to ensure they aligned. I adjusted the schedules accordingly.
• I provided an updated expenditure detail report and provided an apportionment matrix that detailed all the landlord, tenant and shared area responsibilities to the tenant.
• I ensured that figures were clearly linked to actual cost data and lease obligations.
• I checked that they were happy with the new budget on the monthly Teams Call.

Question 25

How did you implement transparency in the service charge figures for the occupiers?

Answer 25

* I provided a tenancy schedule with a breakdown of actual costs v budgeted costs, along with the supporting expenditure detail report. * I provided a service matrix with a breakdown of all the responsibilities, as they were unclear about their lease obligations, as the previous landlord didn’t adhere to it exactly, which had caused confusion

Question 26

What methodology did you use for the apportionment of service charges?

Answer 26

* I employed an apportionment based on floor area and tenancy repairing obligation as set out in the lease. This aligns with the principles set out in the RICS Service Charge in Commercial Property PS.

Question 27

What actions were taken to ensure the 2024/25 budget was accepted by the tenants?

Answer 27

* I provided them with a detailed breakdown of the costs in advance of the budget. * I ensured that the costs were based on actual tender costs (where known) or a weighted average of the past three years spend, along with known planned expenditure.

Question 28

How did you achieve a reduction in electricity costs for Narbeth Surgery?

Answer 28

* I arranged for our Utility Broker to review their electricity and gas charges and provide a competitive quote. This saved them £3,000.

Question 29

What was the main concern raised by the neighbour of Highlight Park Medical Centre?

Answer 29

* The neighbour complained about seagulls roosting on the roof, which escalated to the residents’ association and local MP.________________________________________

Question 30

What steps did you take to prevent a private nuisance claim regarding the seagull issue?

Answer 30

* I made our Comms Team aware as per our company policy in the event of an MP becoming involved with a complaint. I also logged the compliant on our internal tracker and made the Compliant Handler aware. * I quickly responded to the complaint to build trust that a solution could be found and would be addressed. * I set up a call to understand what their concerns were. They advised that the local Tesco had been successful in resolving the issue in the past, which had created the issue at the surgery, as the birds moved on. * I set their expectations that even if we resolved the issue at the surgery, we could not guarantee that the issue would not just be moved to another property in the locality and they accepted this. * I then researched what solutions had been tried in the past. This highlighted that our Pest Controller had also been Tesco’s pest controller, so they were able to identify the successful solution, and this has been added to the budget. The alarm could not be installed until the nesting period expired, so this will be implemented in November, in line with the Wildlife and Countryside Act 1981.

Question 31

What solution did you find to be effective in addressing the seagull problem?

Answer 31

* It is a RIBS sonic alarm that deters seagulls but is inaudible to humans.

Question 32

What were the potential limitations of the chosen solution for the seagull problem, and how did you communicate these to stakeholders?

Answer 32

* The main limitation was that it would just move the issue to another part of the area. I ensured that the representative was made aware of this limitation in writing, and it was accepted before we progressed. * The delay in fitting it due to the nesting season restrictions under the Wildlife and Countryside Act 1981.

Question 33

What is the RICS service charge guide

Answer 33

Service Charge in Commercial Property PS 2025

Question 34

How do you determine the Service charge apportionment

Answer 34

1. Review the lease and deeds 2. On floor area

Question 35

When is a service charge reconciliation carried out?

Answer 35

Within 4 months

Question 36

What should a service charge budget include and when is it issued?

Answer 36

A SC must be issued 1 month before it commences. It is signed by the sc manager and independently audited, use actual costs, actual fees, and clearly show the apportionments, based on floor area.

Question 37

How often should PPM costs be reviewed

Answer 37

3 years min

Question 38

Name some ADR

Answer 38

Informal Mediation Adjudication Expert determination Arbitration

Question 39

What is mediation

Answer 39

An informal ADR where an independent person guides two parties to a non binding decision

Question 40

What is expert determination

Answer 40

An informal ADR where a subject matter expert uses own judgement and the evidence to provide a binding decision

Question 41

What is Arbitration

Answer 41

A formal legal process where an Arbitrator reviews the evidence and provides a binding decision.

Question 42

What is an adjudicator

Answer 42

An informal ADR where a subject matter expert evaluates the evidence and provides a temporary decision to help construction move forward.

Question 43

Name the 9 considerations in managing a service charge budget

Answer 43

1. Check the lease. All costs must align with the lease. 2.Issue annual budget 1 month in advance with commentary. 3. Include apportionment schedule 4. Cost must be best value and reviewed every 3 years and benchmarked. 5. Charge nomore than 100% of actual costs. No profit. Management fees must be fixed cost. 6. Keep sinking fund separate in discrete labelled account. 7. Tenants cannot hold properly demanded costs unless due to computational errors. 8. Reconciliation must be issued within 4 months, approved and true & accurate reflection of costs. 9. Complaint policy must include ADR

Question 44

What are the 18 items that should be detailed in the Heads of Terms.

Answer 44

1. State Subject to contract 2. Premises details 3. Rights 4. Duration 5. Rent 6. Rent Review 7. Service Charge 8. Insurance 9. Vat 10. Use 11. Repairing obligations 12. LTA 1954 position 13. Breaks 14. Incentives 15. Guarantors/ deposit 16. Alienation 17. Alterations 18. Plans

Question 45

What was the device used to scare seagulls in Highlane, Barry?

Answer 45

Renokil Intelligent Bird Scaring sonic device. It is solar powered, detects the species within 250m and varies the calls to prevent familiarity.

Question 46

What can a service charge management fee include?

Answer 46

1. The fee for managing and supervising the services for a site. 2. The cost of site specific management staff. 3. Only include actual overheads and costs.

Question 47

Can you apply a management fee as a percentage

Answer 47

Not normally. It should be based on actual cost. However the lease may specify a percentage fee.

Question 48

What is notional rent?

Answer 48

Notional rent is the assumed market rental value of a property (or part of it), even though no rent is actually being paid.

Question 49

When is a landlord a Heat supplier and what are their obligations

Answer 49

Where the landlord supplies energy to tenants from a centralised heat system. Install tenant meters. Supply a bill based on actual costs once a year.

Question 50

What are the 3 key principles of the RICS service charge

Answer 50

1. Charge no more than 100% of costs 2. Issue budgets 1 month prior to start of budget year 3. Issue an approved reconciliation with 4 months of year end 31