Commercial Property Management Flashcards

Under the Minimum Energy Efficiency Standards (MEES) regulations, what is the minimum EPC rating required for a commercial property to be lawfully let in England and Wales?

Answer: EPC rating E — properties rated F or G cannot be let

From April 2023 it has been unlawful to continue letting commercial properties with an EPC rating below E, building on the earlier 2018 prohibition on granting new leases for sub-E rated properties.

What is a 'property asset management plan' (PAMP)?

Answer: A strategic document setting out objectives and actions to maximise the performance and value of a property asset

A PAMP is a strategic planning tool that identifies objectives, risks, capital expenditure requirements, and actions to optimise the performance, value, and income of a property or portfolio.

Under the Regulatory Reform (Fire Safety) Order 2005, who is the 'responsible person' for fire safety in a multi-tenanted commercial building?

Answer: The employer, occupier, or person with control over the premises or relevant part of it

The Regulatory Reform (Fire Safety) Order 2005 places fire safety duties on the 'responsible person,' typically the employer or occupier with control over the premises, requiring a fire risk assessment and appropriate preventive measures.

What is 'planned preventive maintenance' (PPM) in commercial property management?

Answer: Scheduled maintenance carried out at regular planned intervals to prevent breakdowns and extend asset life

PPM involves scheduling maintenance activities proactively based on manufacturer guidelines and condition surveys, reducing the risk of unplanned failures and managing building life-cycle costs more efficiently.

What is the primary purpose of the Pre-Action Protocol for Dilapidations Claims in England and Wales?

Answer: To encourage early exchange of information and negotiation between parties to promote settlement without litigation

The Dilapidations Protocol requires parties to exchange quantified schedules and formal responses at an early stage, encouraging negotiation and settlement of claims before resorting to court proceedings.

What is a 'green lease' in commercial property?

Answer: A lease incorporating mutual obligations on landlord and tenant to operate the property in an environmentally sustainable manner

A green lease includes obligations for both parties covering energy efficiency, waste reduction, environmental reporting, and sustainable operation, aligning landlord and tenant interests in reducing the property's environmental impact.

What is 'forfeiture' in the context of a commercial lease, and when can it be exercised?

Answer: The landlord's right to end the lease and re-enter the property when the tenant is in breach of a lease covenant

Forfeiture is the landlord's right to terminate a commercial lease and re-enter the premises upon a tenant's breach of covenant such as non-payment of rent, subject to the tenant's right to seek relief from forfeiture from the court.