A One-Day Briefing

Introduction to
Property Management,
Management Charges
and Service Charges

 

Chairman
Philip Freedman CBE, Senior Property Partner, Mishcon de Reya

Speakers
Roger Cohen, Head of Real Estate Disputes, Berwin Leighton Paisner
Raymond Donnelly, Technical Director, Alfred McAlpine Plc
Carl D. Faulds, Licensed Insolvency Practitioner, Portland Business & Financial Solutions
David Gilder, Director, Investment Asset Management & Landlord and Tenant, LSM Partners
Richard Nield, Managing Director, GL Hearn Management Ltd

Matters to be covered include:

THE PRACTICALITIES OF PROPERTY MANAGEMENT
• What modern software systems can and can’t do
• Programmed maintenance
• Managing the landlord and tenant relationship

COMMERCIAL RENT REVIEWS AND LEASE RENEWALS
• Rent reviews
- Market practice in rent reviews
- Trigger notices – trips and traps
- Third party determination
- Negotiating "without prejudice"
- Negotiating "subject to contract"
- Calderbank offers
- Third parties - conflicts, terms, appointments
- Submissions, evidence and confidentiality
- Challenging the award/determination
• Lease termination and renewals
- Identifying protected tenants
- s.40 notices
- s.25 notices
- s.26 requests
- Time limits

SERVICE CHARGES
• What are service charges?
• Why have service charges?
• What to look out for
• Commercial property
- Charging procedures
- Scope of charges
- Management charges
- Reasonableness tests
- Apportionments
- Exclusions and capped charges
- Dispute procedures
- Sale of building
• Residential property
- Statutory framework
- Correct forms of service charge demand
- Consultation on expenditure
- Service charge certificates and accounts
- Dealing with tenant's audits and Right to Manage claims
• Mixed use property
- Issues of complexity, uncertainty and disagreement in service charges
- Costs common to residential and commercial parts
- Issues relating to residential headleases
• Reserve and sinking funds
- Types of fund
- Legal issues
- Taxation of accrued interest

LANDLORD'S RIGHTS AND OBLIGATIONS
• Lease obligations
- Repair or improvement
- Renewal of plant and equipment
• Handling requests for consent to:
- Assign
- Sublet
- Alter
- Change use
• Problems with mixed use
- Quiet enjoyment and partial refurbishment
- Nuisance and annoyance
- Tenant's Right to Manage
• Contentious aspects of –
- Lease renewals
- Rent reviews
- 1954 Act terminations
• Forfeiture for tenant default
- Arrears of rent
- Other breaches
- Avoiding waiver
• Statutory obligations
- Landlord’s and Tenant’s responsibilities
- Managing compliance in property
- Health and safety
- Asbestos
- Disability discrimination
- Water hygiene and Legionella
- Fire precautions and escape
- Managing information and demonstrating compliance

TENANT INSOLVENCY
• Warning signs of impending problems
• Impact of formal insolvency procedures on landlord remedies
• Effect of liquidator disclaiming a lease
• Rescue procedures - 'Stick or bust?'
• ‘But it's not in the lease!’ - some practical points