rics commercial property management in england and wales · that property managers should bear in...

Commercial property managementin England and Wales

RICS Practice Standards, UK

2nd edition, guidance note

Commercial property managementin England and Wales2nd edition, guidance note

This guidance note details best practice in the management ofcommercial property, with particular emphasis on how the person(s) incontrol of a building should manage, communicate and control incomeand expenditure, as well as minimise the various associated risks.

The guidance applies to all members who undertake propertymanagement for the landlord as managing agent, although the generalprinciples apply to any property manager.

The guidance note is focused primarily on the management ofcommercial properties in England and Wales, however, special mentionis made of mixed use developments. A summary of the main areas ofEnglish statute law relevant to the management of a commercialproperty is also provided.

rics.org/standards rics.org/standards

GN 89/2011

Commercial property management in England

and Wales

RICS guidance note

2nd edition (GN 89/2011)

Published by the Royal Institution of Chartered Surveyors (RICS)

Surveyor CourtWestwood Business ParkCoventry CV4 8JEUK

www.ricsbooks.com

No responsibility for loss or damage caused to any person acting or refraining from action as a result of the material included in this publication can be accepted by the authors or RICS.

Produced by the Commercial Property Professional Group of the Royal Institution of Chartered Surveyors.

ISBN 978 184219 721 9

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COMMERCIAL PROPERTY MANAGEMENT IN ENGLAND AND WALES | iii

Acknowledgments iv

RICS guidance notes 1

1 Introduction 2

2 Purpose and scope 3

3 Overview – key principles 4

3.1 Acting as agent of the landlord 4

3.2 Managing third party suppliers 4

3.3 Duty of care 4

4 The property manager’s core duties 5

4.1 Liaising and reporting with the landlord 5

4.2 Collection of monies 5

4.3 Client accounts 5

4.4 Defaulting occupiers 5

4.5 Service charge 6

4.6 Deposits 6

4.7 Managing the building 6

4.8 Management policies 7

4.9 Insurance relating to the property 7

4.10 Occupier liaison 8

4.11 Energy management 8

4.12 Building management systems 9

4.13 Health & safety and fi re safety 9

4.14 Procurement of third-party suppliers 9

4.15 Management fees 10

5 Additional responsibilities of the property manager 11

6 Landlords’ responsibilities to the property manager 12

7 Employees and employment law 13

8 Specialist issues 14

8.1 Managing a portfolio 14

8.2 Mixed use developments 14

8.3 Offshore ownership 14

8.4 Duty of care deeds 15

8.5 Insolvent landlords and LPA receivers 15

Appendix 1 Main English legislation relevant to the management of a commercial property 16

Appendix 2 Property management contract 34

Contents

iv | COMMERCIAL PROPERTY MANAGEMENT IN ENGLAND AND WALES

RICS would like to thank the following individuals for their contributions to this guidance note:

David Lowe, lead author, Partner, Wragge & Co. LLP

David Gardiner MRICS, Director, Jones Lang LaSalle

Peter Thomas FRICS, Director, BNP Paribas Real Estate

And a special thanks to the RICS Property Management Group

Acknowledgments

COMMERCIAL PROPERTY MANAGEMENT IN ENGLAND AND WALES | 1

RICS guidance notes

This is a guidance note. It provides advice to

RICS members on aspects of their work. Where

procedures are recommended for specifi c

professional tasks, these are intended to

represent ‘best practice’, i.e. procedures which

in the opinion of RICS meet a high standard of

professional competence.

Although members are not required to follow the

advice and recommendations contained in the

note, they should note the following points.

When an allegation of professional negligence is

made against a surveyor, a court or tribunal is likely

to take account of the contents of any relevant

guidance notes published by RICS in deciding

whether or not the member had acted with

reasonable competence.

In the opinion of RICS, a member conforming to

the practices recommended in this note should

have at least a partial defence to an allegation of

negligence if they have followed those practices.

However, members have the responsibility of

deciding when it is inappropriate to follow the

guidance.

Alternatively, it does not follow that members will

be found negligent if they have not followed the

practices recommended in this note. It is for each

surveyor to decide on the appropriate procedure

to follow in any professional task. However,

where members do not comply with the practice

recommended in this note, they should do so only

for a good reason. In the event of a legal dispute,

a court or tribunal may require them to explain

why they decided not to adopt the recommended

practice. Also, if members have not followed this

guidance, and their actions are questioned in

an RICS disciplinary case, they will be asked to

explain the actions they did take and this may be

taken into account by the Panel.

In addition, guidance notes are relevant to

professional competence in that each member

should be up to date and should have knowledge

of guidance notes within a reasonable time of their

coming into effect.

2 | COMMERCIAL PROPERTY MANAGEMENT IN ENGLAND AND WALES

1.1 Management is about achieving defi ned

objectives that should be agreed with the client

at the outset of each instruction, particularly the

provision of quality services which are value for

money.

1.2 This guidance note is principally concerned

with how the person(s) in control of a building

should act and, in particular, how they manage,

communicate and control income and expenditure

while minimising the various associated risks.

Managers should at all times seek to comply

with the principles set out in this guidance note.

While this guidance note refers principally to the

management of multi-let properties, the principles

can be applied to the management of all types

of commercial property. The property manager is

commonly appointed on behalf of the landlord to

assist them with services that may include:

• meeting their investment objectives, e.g. to

preserve and enhance value or to facilitate a

future redevelopment

• maintaining comprehensive tenancy records

• discharging their obligations under leases

and ensuring tenant compliance with lease

covenants

• day-to-day tenant liaison and service

satisfaction

• ensuring that they meet their statutory

obligations

• operating the property day-to-day on a

sustainable basis including procurement of

cost effective facilities management services

• undertaking the fi nancial administration of the

property, including rent collection and service

charge administration

• ensuring that adequate insurance is in place

to satisfy lease covenant and any lending

institutions and administering any claims.

1.3 It should be appreciated that, subject to

the occupiers’ rights under the lease and the

law, the landlord has to decide what actions

to take or not to take in respect of a property.

Equally, the property manager must manage.

Nevertheless, effective management needs to take

into account what occupiers think. Occupiers are

landlords’ customers and business is generated

from satisfi ed customers. While the objectives of

landlord and occupier may differ, mutual benefi ts

will be derived through an understanding of each

party’s requirements and by co-operation, resulting

in fewer unforeseen disputes for the manager.

Effective communication is critical if success is to

be achieved.

1.4 A successful property manager must be

effi cient, effective and accountable. They should

be open about their methods of management.

Consultation and communication will invite

challenge, but they are essential if standards are to

be improved.

1 Introduction


2.1 This guidance note applies to all members

who undertake property management, for the

landlord as managing agent. However, the general

principles would apply to any property manager.

2.2 The purpose of this guidance note is to

summarise best practice in property management

of commercial properties and highlight key aspects

that property managers should bear in mind in

successfully managing a property.

2.3 It is focused on the management of

commercial properties in England and Wales (and

refers to English law throughout).

2.4 Although commercial property (i.e. offi ce,

retail, industrial) is the focus, special mention is

made of mixed use development where commercial

property is typically mixed with residential property.

2.5 This guidance note deals with property

management, not asset management or facilities

management.

2.6 Appendix 1 provides a summary of the

main areas of English statute law that are relevant

to the management of a commercial property,

accurate at the time of going to press. Please visit

www.legislation.gov.uk to check current information

on English law. Appendix 1 should be a useful

resource to property managers for checking they

have the procedures in place to manage these

legal responsibilities, and understanding the

context in which they provide their services. Please

note this information is not exhaustive and is not

intended to be legal advice – in specifi c cases it is

recommended that specifi c legal advice is sought.

2.7 This guidance note only provides an

overview. Other useful RICS documents that go

into more detail on property management include:

• RICS code of practice: Service charges in

commercial property, 2nd edition (2011)

• RICS information paper: Managing mixed use

developments (2009)

• RICS information paper: Commercial

property handover procedures (2011)

• RICS guidance note: Insurance for

commercial property managers (2011)

These can all be found at www.rics.org/standards.

2 Purpose and scope


The overall objective for a property manager is to

act as an agent for the landlord to manage:

a) some or all of the responsibilities the

landlord has:

i. under the property’s lease, if any, from a

superior landlord; and

ii. under the property’s occupational

leases to occupiers and other

occupiers;

b) some or all of the landlord’s responsibilities

regarding laws in owning or operating a

property;

and support in:

i. making a fi nancial/economic success of

the property; and

ii. the successful use and operation of the

property.

3.1 Acting as agent of the landlord

3.1.1 It is an important principle that the property

manager manages the property on behalf of a

landlord. Although the landlord is delegating

the management of the property to the property

manager, the landlord still retains the primary

responsibility for the property. The landlord would

have made the necessary capital investment and

will therefore take the capital risk or reward arising

from that. This does not mean that the property

manager has no responsibility at all (see 3.3 on

duty of care), but it is important to bear in mind this

agency relationship.

3.2 Managing third party suppliers

3.2.1 The property manager will carry out some

signifi cant tasks, but many substantial aspects of

the operation of a building will be fulfi lled by other

suppliers such as various providers of facilities

management services (e.g. security, cleaning, plant

maintenance). Therefore, the property manager

ensures the property is successfully operated, not

necessarily by doing everything but by managing

others to do so.

3.3 Duty of care

3.3.1 The primary duty of care that a property

manager has is to his/her client, the landlord.

This is usually set out in the contract with the

landlord (see Appendix 2 on property management

contracts). Even in the absence of a written

contract the English courts are likely to fi nd that

a property manager has a ‘duty of care’ to the

landlord, which means that the property manager

will have legal liability if he/she is negligent – i.e.

fails to manage the property with reasonable skill

and care.

3.3.2 A property manager will not just have

responsibilities to the landlord; they will also have

signifi cant day-to-day contact with the occupiers,

among others. At the very least this creates

commercial and reputational duties to those

occupiers, and could have the potential to create

a legal duty of care to those occupiers. Therefore

a good property manager will need to ensure they

take good care of the occupiers and other relevant

stakeholders.

3.3.3 A property manager may also be asked to

agree to have a duty of care to parties providing

fi nance in connection with the properties being

managed (see section 8.4 on duty of care deeds).

3 Overview – Key Principles


The property manager has two core duties, and

the application of the following points differs

between multi-let and single-let properties:

a) the collection of rent, service charge and

other sums, owing by the occupiers to the

landlord, from the occupiers; and

b) the management of the property.

4.1 Liaising and reporting with the

landlord

4.1.1 It is critical that the property manager

seeks to develop a positive relationship with the

landlord, understands the landlord’s objectives and

approach, and establishes a format and frequency

for reporting.

4.2 Collection of monies

4.2.1 A key role is the collection and management

of sums owing by occupiers relating to rent, service

charge, insurance, and any other sums due under

the lease. It is important that a property manager

has an established process in place to arrange for

the effi cient collection of these monies. This means

that a property manager will:

(a) have a thorough understanding of the

relationship between landlord, occupier and

other occupiers in the building;

(b) obtain, wherever possible, from the landlord,

copies of all relevant documents, leases,

licences and so on;

(c) understand from those documents the

payment obligations;

(d) maintain a database of the occupiers and

other occupiers to record the fi nancial

position with each of them;

(e) put payment processes in place so that

the occupiers are clear exactly how much,

when and to whom rent, service charges,

insurance, rents and other amounts are due;

(f) make sure the payment process is clear so

that no occupier or occupier can argue that

the amount due or the time of payment is not

known;

(g) have a mechanism in place to notify of any

default in payment or a dispute over any

payment and promptly report this to the

landlord in the manner agreed about such

default;

(h) have a process in place to pursue occupiers

for defaults in payments;

(i) have arrangements in place to forward sums

collected, less deductions, e.g. service

charge, on to the landlord. The landlord will

want these sums to be forwarded as quickly

as possible; and

(j) report to the landlord on the reconciliation of

the amount actually paid to the landlord and

the amount collected.

4.3 Client accounts

4.3.1 A key advantage of a property manager who

is professionally qualifi ed is the ability to use client

account arrangements, which the landlord can

have confi dence in as being subject to regulatory

review. Where the property manager is a member

of the Royal Institution of Chartered Surveyors

(RICS) they will be required to comply with the

RICS members’ accounts regulations (Rule 8, RICS

Rules of Conduct for Firms, version 4 (August

2010) is particularly relevant in this instance). RICS

Regulation has also issued a help sheet, Clients’

money: general advice for fi rms, that sets out

guidance in its requirements for the handling of

client money.

4.4 Defaulting occupiers

4.4.1 It is recommended that the property

manager agrees with the landlord how defaulting

occupiers should be dealt with; in particular, when

the landlord wants to be alerted to a default. As

a recommended minimum, property managers

should inform the landlord as soon as the property

manager feels it is sensible to instruct debt

collection agencies, to take legal proceedings to

recover monies owed, or take steps to repossess

the property under the lease terms.

4 The property manager’s core duties


4.4.2 It is important for the property managers,

if they do instruct a solicitor and/or a debt collection

agency on behalf of the landlord, to ensure it is

made clear to the debt collection agency/solicitor

that the property manager is acting on behalf of the

landlord and that all liabilities and costs arising from

the instruction will be for the landlord’s account.

4.5 Service charge

4.5.1 Calculating the service charge

apportionment and corresponding budget is a key

duty of the property manager and needs to be

handled with care. Occupiers will be anxious to

ensure that the service charge budget is appropriate

in its amount and allocation. Landlords will want

to ensure their obligations under the occupational

leases are fulfi lled and the property is properly

maintained. Service charges can be the cause of

signifi cant friction between occupiers and landlords,

which means the property manager will need to

take particular care to communicate in a clear and

transparent manner.

4.5.2 The property manager should keep monies

collected as part of the service charge in a separate

service charge account with transparent records

for all income and expenditure. The 2nd edition

of RICS code of practice, Service charges in

commercial property (2011) goes into more detail

on this.

4.6 Deposits

4.6.1 The property manager will need to review

the occupational leases and associated rent

deposit deeds to understand what deposits are

held and on what terms. It is recommended that the

property manager establishes a separate, interest-

bearing account to hold occupiers’ deposits and

manages the funds and any accrued interest in

accordance with the relevant legal documentation.

4.7 Managing the building

4.7.1 The landlord will have responsibilities to

ensure that the building is managed to its superior

landlord (if any), to its occupiers, licencees and

occupiers under the relevant lease or similar

document, and responsibilities in law. It is the

property manager’s responsibility to ensure that the

landlord understands their responsibilities, and that

these are appropriately delegated to the property

manager.

4.7.2 The property manager should ensure the

effective operation of the property. This means

ensuring the property is effi ciently managed;

anticipating and monitoring potential problems;

maintaining regular contact with occupiers; and

seeking to comply with the service charge budget.

4.7.3 In addition, it is essential that the property

manager has copies of all of the leases and

related documents relating to the relationship of

the superior landlord (if any), and with each and

every occupier, licencee and other occupier. It

is essential that the property manager reviews

and understands these documents and identifi es

any missing documents. If the property manager

identifi es any gaps or missing documents these

should be promptly notifi ed to the landlord. Please

note the landlords obligations under section 6.1.

4.7.4 The property manager should consider

maintaining an electronic database of all the key

documents, dates etc.

4.7.5 Handover from the previous property

manager (and handing over to the next property

manager) is an important process. The RICS

information paper, Commercial property service

charge handover procedures (2011) provides useful

information.

4.7.6 It is important that the property manager

has a good understanding of the landlord’s

legal responsibilities. Appendix 1 lists the key

statutory responsibilities in England at the time

of publication. It is the property manager’s

responsibility to keep abreast of developments and

advise the landlord of signifi cant changes.

4.7.7 It is important that property managers not

only ensure that they assist their landlord to fulfi l all

of their legal obligations, but also maintains records

to demonstrate that the property manager has

done so.

4.7.8 It is recommended that property managers

have clear policies setting out how they are dealing

with the review of documents related to the

building, compliance with all laws and so on.


4.8 Management policies

4.8.1 It is recommended that policy documents

are kept by the property manager detailing the

following:

(a) calculation and management of the service

charge account;

(b) collection of rent, service charge and other

monies;

(c) repair and maintenance of the building;

(d) operation of the building;

(e) appointing and managing contractors;

(f) health and safety compliance;

(g) insurance;

(h) liaising with occupiers – generally, and also

specifi cally in relation to consents such as

consent to assign, consent to alter and so

on; and

(i) management of procurement.

4.9 Insurance relating to the property

4.9.1 The landlord is normally required under its

occupational leases to obtain insurance against

damage to the property, including loss of rent, and

public liability insurance, and the lease will usually

allow the landlord to charge the occupiers for the

insurance premium.

4.9.2 The advising on, brokering or arranging of

insurance policies is subject to various fi nancial

services regulatory requirements. This is a complex

area. For example, introducing the landlord to

an insurer or handling claims may or may not

be subject to regulation, depending on the

circumstances. If a property manager has agreed

to do more than simply collect insurance premiums

for occupiers in relation to an existing policy then

the property manager should check whether he/she

is therefore subject to fi nancial services regulations

and if so, what level of compliance is required and

how this will be achieved. Please refer to RICS

guidance note, Insurance for commercial property

managers, 1st edition (2011).

4.9.3 It is important for the property manager

to understand the insurance arrangements and

the property manager’s role in these insurance

arrangements as:

• a failure to have appropriate insurance in

place could create a huge potential claim if

there was a catastrophic loss. Making sure

insurance is in place is a simple step to

manage a huge risk;

• the property manager needs to understand

what is to be charged to and collected from

occupiers to pay for the insurance;

• the property manager needs to be able to

identify when it may be appropriate to make

an insurance claim.

4.9.4 It is sensible for the property manager to

hold appropriate public liability insurance. If a

person is injured while in the managed property

then they will consider making a claim against all

of the people involved – the landlord, the relevant

occupier, the relevant service provider (e.g. cleaning

contractor or security contractor) and the property

manager. This risk is especially high for buildings

open to the public with high footfalls, such as

shopping centres. Traditionally the landlord and

property manager hold separate public liability

insurance, recognising that their interests are

different. It is recommended that property managers

ensure that they factor in to their charges the costs

of securing public liability insurance (especially

where a high footfall public building is being

managed). If a property manager wishes to hold

no/minimal public liability insurance and rely on the

landlords insurance, then it is important that this

is expressly agreed in detail with the landlord to

ensure the property manager is not exposed. This

complex area is covered in the RICS guidance note.

4.9.5 The property manager will also need to

consider which insurances they are required to hold

by law; such as employers liability insurance and

motor insurance (if relevant), and those that are

sensible to hold.

4.9.6 The RICS guidance note, Insurance for

commercial property managers, 1st edition, (2011)

explains in detail the insurance covers required by

commercial property owners.


4.10 Occupier liaison

4.10.1 Seeking to create a good relationship

with occupiers is essential to good property

management. Therefore the property manager

should:

• ensure the occupiers know who the property

manager is and how to contact them;

• seek regular contact with each occupier;

• establish a regular occupiers forum;

• provide emergency contact details for out

of hours incidents e.g. a helpdesk facility

operated by a specialist third party or in

house operation;

• properly respond to occupier queries; and

• comply with the communication and

consultation provisions set out in RICS code

of practice, Service charges in commercial

property (2011).

4.10.2 Part of the property manager’s role is

to manage applications by occupiers under the

occupational leases, such as licences to assign,

alter and underlet. The property manager should

have a system in place to ensure these are dealt

with properly and effi ciently, reviewing them

and making recommendations to the landlord.

The property manager should bear in mind that

although these applications may seem routine,

to the occupiers they are often important and

therefore need to be managed accordingly. The

property manager needs also to ensure that it

acts in accordance with statutory requirements

under the Landlord & Tenant Acts (please refer to

Appendix 1).

A particular consideration is the issue of time

limits when responding to a tenant’s application.

In circumstances where a landlord is under an

obligation (direct or implied) to act reasonably,

the courts have determined that decisions must

be made within strict timeframes. Failure to issue

a decision within a reasonable timeframe could

expose the property manager (as agent for the

landlord) to a potential claim for damages should

the tenant subsequently lose an opportunity to

assign or sub let.

Therefore tenant applications must be reviewed

and handled expeditiously if there are direct or

implied obligations to act reasonably, and clients

will need to be advised of the time constraints

when matters are referred to them for decision by

the property manager.

The property manager may recommend to their

client that legal advice should be taken if the tenant

is not supplying suffi cient information required to

make a decision or the landlord wishes to refuse

consent.

4.11 Energy management

4.11.1 Energy management is increasingly

important with rising energy costs and growing

responsibilities around CO2 emissions and

energy conservation. The property manager

should be aware of any new regulations relating

to environmental performance of buildings. The

property manager also needs to ensure that energy

procurement, energy conservation and regulatory

competence is given a high profi le.

At the outset of an instruction the property

manager should determine whether or not

their client is obliged to provide annual Carbon

Reduction Commitment (CRC) returns and, if

so, ensure there are clear responsibilities for the

information required by the client, the timing of

the information and the format of the information,

e.g. electricity supply meter readings.

It should be noted that where a landlord is

responsible for the electricity supply for a multi-

let property, and there are sub-meters recording

consumption by the occupiers, the sub metered

supplies will still be recorded against the owner’s

consumption profi le.

In this event the property manager will also need

to consider the need to implement a recharging of

electricity consumption to the occupiers. The 2nd

edition of RICS code of practice, Service charges

in commercial property (2011) indicates that

‘reasonable administrative charges’ are appropriate

for a property manager operating a mechanism of

recharging utility costs.


4.12 Building management systems

4.12.1 Many buildings now have a building

management system – in effect, an IT system to

operate the building. It is the property manager’s

responsibility to ensure the system is operating

properly and is maintained regularly, not least

because the system will be a key part of ensuring

compliance with the regulatory obligations applying

to the building.

4.13 Health & safety and fi re safety

4.13.1 A key role for the property manager is

overseeing health & safety and fi re safety in the

property, ensuring it is managed to comply with

all legal obligations. Keeping the building safe

and ensuring compliance with relevant legislation

will require the establishment of systems and

procedures to ensure statutory inspections are in

place and systems monitored. Appendix 1 sets out

the key legal rights which property managers need

to be mindful of.

4.14 Procurement of third party

suppliers

4.14.1 Many of the services required for the good

operation of a building e.g. security, cleaning and

plant maintenance will be provided by third parties.

To source these services the property manager will

normally enter into arrangements with third party

suppliers as agent for the landlord. This means

that the contracts (if properly created) are actually

between the landlord and supplier. This has the

effect that:

• the supplier is liable to the landlord for

the performance of the services, which

is important as the landlord is, in turn,

responsible to its occupiers;

• if the property manager changes, the third

party contracts will not be affected;

• ultimately the landlord is responsible for

paying the suppliers so if, for example, the

landlord becomes insolvent owing money to

the suppliers, the property manager is not

liable to the supplier.

4.14.2 It is recommended that the property

manager has an appropriate procedure for

selecting third party supplies to ensure that they

are capable, reputable and good value for money.

That procedure should identify when (e.g. annual

contract value trigger) a more formal competitive

tender should be used. Where the services

procured are substantial, consideration should be

given to using a procurement specialist.

4.14.3 The property manager should:

• ensure they have a comprehensive, signed

contract in place with all third party service

providers;

• ensure the contracts clearly state that the

property manager is entering the contract as

agent for the landlord;

• ensure the contracted scope of services is

clear;

• ensure that the contracts with the service

provider comply with any requirements

the landlords has included in its property

management contract (e.g. length of

contract);

• ideally, ensure that all contracts with service

providers can be terminated on one months

notice on sale of the property (see RICS

information paper Commercial property

service charge handover procedures (2011);

• consider including in the services contract a

performance management regime or service

levels;

• consider maintaining an electronic database

of suppliers and contracts.


4.15 Management fees

4.15.1 It is important that details of the property

manager’s fee, such as the amount, when and

how it is payable and the invoicing and reporting

processes are made clear to the landlord. RICS

guidance in relation to management fees is set out

in the RICS code of practice, Service charges in

commercial property (2011), which requires that:

‘…fees are set on a fi xed price basis rather

than being calculated as a percentage

of expenditure. Percentage is no longer

appropriate and is considered to be a

disincentive to the delivery of value for

money. The management fee should be

a fi xed fee subject to annual review or

indexation.

It is recognised that many leases refer to the

management fee as a percentage of the total

service charge or contain a percentage cap.

This guide cannot override the terms agreed

between the parties and recorded in the

lease.’

4.15.2 For the complete text of this clause please

refer to section 1.3 of the RICS code of practice:

Service charges in commercial property (2011). It

is worth noting here that the Code expressly states

that the cost of collecting rent should be excluded

from the service charge management fee.

4.15.3 It is also worth considering the following

when setting and administering the fee:

• Whichever means of fee calculation is

applied it is essential that how it is calculated

is clear.

• Consideration may be given to the impact

of voids in a property upon any formula for

calculating the fee.

• Where the term of the property management

is a signifi cant period, usually more than a

year, then consideration needs to be given to

how the fee will be adjusted or reviewed.

• It should be made clear whether the fee is

payable in advance or in arrears, monthly or

quarterly.

• Consideration should be given to the

reporting a landlord requires and invoicing

processes.

• The mechanics for payment will need to be

established. The property manager will want

to have express authority to deduct (to the

extent appropriate) payment from the service

charge account, and require the landlord to

fund the account if the service charge is not

adequate (e.g. vacant building, high level of

voids).

4.15.4 The property manager will not be able to

manage a property if the service charge account is

insuffi ciently funded. If the building is fully occupied

and occupiers are paying their service charges then

the service charge account should normally be

suffi ciently funded. However, property managers

should ensure a landlord continues to fund the

service charge account for any shortfall – such as

in relation to voids.


5 Additional responsibilities of the property manager

5.1 As well as the core duties, property managers

often become involved in other property issues, for

example:

• acquisition and sale support and advice

• rent reviews

• rating reviews

• letting agency, and

• dilapidations advice.

5.2 Property managers should ensure that

any additional services (and their related fees)

are properly documented. Property managers

should be aware of the industry code for leasing

business premises – available from

www.leasingbusinesspremises.co.uk


6 Landlords’ responsibilities to the property manager

6.1 A key responsibility of the landlord to

the property manager is to provide information

regarding the property and the relationships with

occupiers. A property manager cannot effectively,

effi ciently and successfully manage a property

without that information. The property manager

should make the landlord aware that if the landlord

cannot provide all necessary information then the

property manager’s service will be impaired and

additional costs may be incurred. Where there is a

change in property manager the outgoing property

manager will provide the information to the

incoming property manager. The incoming property

manager needs to check the information received.

RICS’ information paper, Commercial property

service charge handover procedures (2011) goes

into more detail on handover from one managing

agent to another.


7.1 The property manager will usually employ

one or more people whose duties will include

managing certain aspects of the property.

If a property is large or especially complex (e.g.

a shopping centre or multi-let offi ce) then it is

likely there will be a number of employees who

will focus on the management of the property or,

where applicable, a particular landlord’s portfolio

of properties. In addition, the various suppliers of

services to the property (e.g. security, cleaning and

so on) will also employ individuals who will spend

a signifi cant amount of their time working in or in

relation to that property.

7.2 This means that the employees of the

property manager and the service suppliers

to the property are likely to have the benefi t

of the Transfer of Undertakings (Protection of

Employment) Regulations 2006 (TUPE). TUPE

has the effect, in certain situations, of moving

employees automatically from old supplier to new

supplier. If mishandled it can present a signifi cant

liability to property managers. It is also often not

properly understood by landlords. Therefore it is

essential for property managers to understand

TUPE to ensure they understand and avoid the

risks and are able to explain them to landlords.

For further information please refer to RICS

information paper, TUPE – Information for property

managers (2009), which sets out the issues in more

detail.

7 Employees and employment law


8.1 Managing a portfolio

Where a landlord has a portfolio of properties and

a property manager is appointed to manage all, or

part, of them, it is possible to do that with a single

contract. When drawing up this contract it is worth

considering the following:

• how properties are added and removed (and

consequential impact on fees);

• TUPE – it is more likely the property manager

will have dedicated staff (not just on site but

also back offi ce) and therefore TUPE is an

increased risk;

• whether or not the types of service are the

ame across all properties.

8.2 Mixed use developments

8.2.1 Mixed use developments are those with a

mix of commercial and residential occupiers. There

are considerable differences between the nature of

managing a commercial occupier and a residential

occupier. The nature of managing residential

occupiers will vary further depending on whether

occupiers’ leases are assured shorthold tenancies

or long leases.

8.2.2 There is, in addition, signifi cant legal

protection for residential occupiers (see, for

example, the Landlord and Tenant Acts 1985 and

1987, the Commonhold and Leasehold Reform

Act 2002 and the Leasehold Reform, Housing and

Urban Development Act 1993). This means, for

example:

• residential leaseholders who pay service

charge can challenge any item of the service

charge before the Leasehold Valuation

Tribunal; and

• long-term contracts (i.e. more than 12

months) with service providers must be

the subject of consultation with residential

leaseholders.

8.2.3 The property manager must be clear on

the statutory requirements for administering

service charges in residential properties (or where

residential use forms part of a larger mixed use

property and contributes to a building or estate

service charge). The requirements must be adhered

to completely unless qualifying exceptions apply.

See the RICS information paper, Managing mixed

use developments (2009) for more information.

8.3 Offshore ownership

8.3.1 It is not unusual for properties to be owned

offshore, e.g. by a Jersey registered company, to

mitigate tax exposure. This raises three potential

issues, which the property manager needs to be

aware of and give due consideration to:

• Due diligence/Client ID. The property

manager will need to identify the client

and the benefi cial owners of the properties

being managed and fulfi l money laundering

requirements. This will be more diffi cult with

an offshore company, but equally that is why

this cannot be ignored. For further guidance,

please see the Money laundering guidance,

November 2010, co-authored by the National

Federation of Property Professionals,

Royal Institution of Chartered Surveyors,

Association of Relocation Professionals, and

the Association of Residential Managing

Agents.

• Non-resident landlord scheme. This is a tax

scheme operated by HMRC requiring UK

‘letting agents’ to deduct tax from rent they

collect for non-resident landlords, unless

the agent receives notifi cation from HMRC

that it can transfer rents to the non-resident

landlord without deduction of tax. The agent

will need to register with HMRC and account

to HMRC quarterly in respect of any tax

due to HMRC. The agent is also required to

complete annual returns to HMRC in respect

of income received for all non-resident

landlords.

8 Specialist issues


• It is often a requirement that the property

manager pays over VAT to HMRC as advised

by the client’s adviser. In these situations

the property manager will need a standing

approval from their client to take instructions

from their client’s adviser in respect of

amounts to be remitted to HMRC.

8.4 Duty of care deeds

8.4.1 A duty of care deed is a document between

a property manager and the landlord’s funder.

The purpose is to create a direct legal relationship

between property manager and funder, particularly

as to payment of rent, but also more generally.

They create additional risk for the property

manager. RICS’ information paper, Duty of care

deeds and commercial property (2009), explains

duty of care deeds in more detail and how property

managers should deal with them.

8.5 Insolvent landlords and LPA

receivers

8.5.1 If a landlord becomes insolvent then an

administrator, liquidator or Law of Property Act

receiver is likely to be appointed. Each of these

have different powers and approaches:

• An administrator will be looking to operate

the landlord’s business as a going concern

with a view to selling the business and

maximising the return to creditors. Therefore

to an administrator the property manager

is important to collect rent and manage the

building pending the sale of the business.

• A liquidator will be looking to liquidate the

landlord’s business – i.e. break up and sell

the individual assets. Usually an administrator

is appointed fi rst and the administrator often

concludes the best approach for the creditors

is to liquidate and then the administrator will

become a liquidator. Again to a liquidator the

property manager is useful to continue to

manage a building pending its disposal.

• A Law of Property Act receiver (LPA receiver)

is appointed by someone who has a fi xed

charge or mortgage over the property where

the owner has failed to make payments. The

LPA receiver is appointed as an agent to the

borrower, but the courts recognise that the

LPA receiver will take heed of the lender’s

interests. The exact scope of the LPA

receiver’s powers will depend on the detail

of the mortgage/charge agreement. An LPA

receiver is likely to wish to sell the property if

that is the best approach for the lender, but

where the better approach is to delay selling

then the LPA receiver may be prepared to

operate the building. The property manager

will therefore be useful to the LPA receiver in

these circumstances.

8.5.2 The property manager should:

• monitor the fi nancial health of the client

so that he/she can be aware of a potential

insolvency;

• ensure the contract with the landlord allows

the property manager to terminate on the

landlord’s insolvency, which means that if

the landlord becomes insolvent the property

manager at least has a choice; and

• contact the administrator/liquidator/

LPA receiver immediately if a landlord

becomes insolvent to request a copy of

their appointment; identify if the property

manager’s services are required; and obtain

confi rmation that the property manager will

be paid, preferably in advance rather than

in arrears. Given the onerous legal duties

that arise from owning a property then the

property manager’s services are likely to be

needed at least in the short-term, but the

property manager will require commitment on

fees before proceeding.


This schedule sets out the principle relevant

English legislation that applies to the operation of

commercial property.

The information is not exhaustive. In particular,

it focuses on legislation specifi c to property

management or arising in relation to a property.

It does not include the variety of laws that any

company will need to comply with.

A short summary is included for each item. This

is only intended to be a very brief summary for

reference and is not legal advice. Specifi c legal

advice should be sought to understand the impact

of legislation.

This is a list of English legislation only; outside of

England other legislation may apply

Appendix 1 Main English legislation relevant to the management of a commercial property


Nu

mb

er

Na

me

of

leg

isla

tio

nB

rie

f su

mm

ary

of

leg

isla

tio

nK

ey p

oin

ts/k

ey s

ec

tio

ns/s

ch

ed

ule

s

HE

ALT

H &

SA

FE

TY

1C

orp

ora

te M

ansla

ug

hte

r and

Co

rpo

rate

Ho

mic

ide A

ct

20

07

Th

is A

ct

cre

ate

s a

new

off

en

ce

in E

ng

lan

d a

nd

Wale

s o

r

No

rth

ern

Ire

lan

d,

wh

ich

en

ab

les

a c

orp

ora

tio

n t

o b

e g

uilt

y o

f

man

sla

ug

hte

r an

d h

om

icid

e.

An

org

an

isatio

n is g

uilt

y o

f th

is o

ffen

ce if

it c

au

ses a

pers

on

’s

death

du

e t

o a

gro

ss b

reach

of

the o

rgan

isatio

n’s

rele

van

t

du

ty o

f care

to

th

e d

eceased

.

An

org

an

isatio

n is o

nly

gu

ilty o

f an

off

en

ce if

the d

eath

was

cau

sed

by t

he w

ay in

wh

ich

its

activitie

s a

re m

an

ag

ed

or

org

anis

ed

by s

en

ior

man

ag

em

en

t.

2O

ccup

iers

Lia

bili

ty A

ct

195

7T

his

Act

imp

oses a

du

ty o

f care

on

pers

on

s o

ccu

pyin

g o

r in

co

ntr

ol o

f

an

y p

rem

ises in

rela

tio

n t

o v

isito

rs.

Th

e o

ccu

pie

r h

as a

du

ty t

o e

nsu

re t

hat

an

y v

isito

r is

reaso

nab

ly s

afe

wh

ilst

on

th

e p

rop

ert

y.

Th

e o

ccu

pie

r’s d

uty

of

care

is r

ela

tive t

o t

he v

isito

r (e

.g.

the

occup

ier

mu

st

be p

rep

are

d f

or

ch

ildre

n t

o b

e less c

are

ful

than

ad

ults).

Th

e o

ccu

pie

r w

ill n

ot

be r

ele

ased

fro

m lia

bili

ty b

y m

ere

ly

pu

ttin

g u

p a

warn

ing

sig

n,

un

less t

he w

arn

ing

sig

n w

as

su

ffi c

ien

tly c

lear

to e

nab

le t

he v

isito

r to

be r

easo

nab

ly s

afe

.

If in

jury

has b

een

cau

sed

to

a v

isito

r d

ue t

o f

au

lty w

ork

carr

ied

ou

t b

y a

th

ird

part

y (e.g

. su

bco

ntr

acto

r),

the o

ccu

pie

r

will

on

ly b

e r

ele

ased

fro

m a

ny lia

bili

ty if

he/s

he h

as t

aken

reaso

nab

le s

tep

s t

o s

atisfy

him

/hers

elf t

hat

the c

on

tracto

r

was c

om

pete

nt

an

d t

hat

the w

ork

had

been

do

ne p

rop

erly.


Nu

mb

er

Na

me

of

leg

isla

tio

nB

rie

f su

mm

ary

of

leg

isla

tio

nK

ey p

oin

ts/k

ey s

ec

tio

ns/s

ch

ed

ule

s

3O

ccup

iers

Lia

bili

ty A

ct

198

4T

his

Act

co

nfe

rs a

du

ty o

n t

he

occu

pie

r o

f a p

rem

ises t

o a

ny

pers

on

s o

ther

than

vis

ito

rs.

Th

e o

ccu

pie

r o

wes a

du

ty t

o a

ny p

ers

on

wh

o is n

ot

his

vis

ito

r

in t

he s

am

e w

ay a

s h

e o

wes a

du

ty t

o h

is v

isito

r if:

(a)

he is a

ware

of

an

y d

an

ger

or

hazard

on

th

e p

rem

ises o

r

has r

easo

nab

le g

rou

nd

s t

o b

elie

ve t

hat

on

e e

xis

ts;

(b)

he is a

ware

or

has r

easo

nab

le g

rou

nd

s t

o b

elie

ve t

hat

an

y

pers

on

is o

r m

ay b

e a

t risk f

rom

an

y d

an

ger

(th

is a

pp

lies

wh

eth

er

or

no

t th

e p

ers

on

is law

fully

or

un

law

fully

on

th

e

pre

mis

es); a

nd

(c)

the o

ccu

pie

r sh

ou

ld b

e e

xp

ecte

d t

o o

ffer

reaso

nab

le

pro

tectio

n a

gain

st

that

dan

ger

(i.e

. fe

ncin

g o

ff a

dan

gero

us a

rea o

r p

utt

ing

up

warn

ing

sig

ns).

Pla

cin

g a

sig

n t

hat

sim

ply

says ‘

Dan

ger’

will

no

t b

e s

uffi c

ien

t.

Th

e s

ign

sh

ou

ld s

tate

th

e n

atu

re o

f th

e d

an

ger

an

d s

om

e s

ort

of

pre

ven

tative m

easu

re s

ho

uld

be p

ut

in p

lace d

ete

rrin

g t

he

vis

ito

r fr

om

en

terin

g t

he p

rem

ises o

r p

reven

tin

g t

he v

isito

r

fro

m b

ein

g h

arm

ed

.

4H

ealth &

Safe

ty a

t W

ork

etc

. A

ct

1974

Th

is A

ct

co

nfe

rs a

du

ty o

n

em

plo

yers

to

en

su

re,

so

far

as is

reaso

nab

ly p

racticab

le,

the h

ealth

,

safe

ty a

nd

welfare

at

wo

rk o

f all

their e

mp

loyees.

Th

e e

mp

loyer

mu

st

pro

vid

e in

form

atio

n,

instr

uctio

n,

train

ing

an

d s

up

erv

isio

n t

o a

ll em

plo

yees t

o e

nsu

re t

heir s

afe

ty a

t

wo

rk.

He/s

he m

ust

als

o e

nsu

re t

hat

the p

rem

ises a

re m

ain

tain

ed

in

a c

ond

itio

n t

hat

is s

afe

an

d w

ith

ou

t risks t

o a

ny h

ealth

of

his

em

plo

yees.

Th

e e

mp

loyer

mu

st

pro

vid

e a

nd

main

tain

ad

eq

uate

facili

ties

for

the n

eed

s o

f h

is/h

er

em

plo

yees.

Th

is in

form

atio

n m

ust

be r

eco

rded

, an

d a

ll h

ealth

an

d s

afe

ty

measu

res (i.e.

fi re

ala

rms) m

ust

be t

este

d.

Th

e s

am

e d

uties a

pp

ly t

o p

eo

ple

no

t d

irectly e

mp

loyed

by

the e

mp

loyer, b

ut

do

ing

wo

rk o

n h

is/h

er

beh

alf.


Nu

mb

er

Na

me

of

leg

isla

tio

nB

rie

f su

mm

ary

of

leg

isla

tio

nK

ey p

oin

ts/k

ey s

ec

tio

ns/s

ch

ed

ule

s

5M

anag

em

ent

of

Health &

Safe

ty a

t

Wo

rk R

eg

ula

tio

ns 1

999

(SI 1999/3

242)

Th

ese R

eg

ula

tio

ns c

on

fer

furt

her

ob

ligatio

ns o

n t

he e

mp

loyer

to

pro

vid

e f

or

em

plo

yees’

ad

eq

uate

health

an

d s

afe

ty.

Th

is in

clu

des

makin

g a

ssessm

en

t ch

ecks o

n

risks t

o e

mp

loyees’

health

. T

his

du

ty e

xte

nd

s,

for

exam

ple

, to

carr

y

ou

t p

ort

ab

le a

pp

lian

ce t

estin

g (P

AT

testin

g).

Th

e e

mp

loyer

mu

st

make a

su

itab

le a

nd

su

ffi c

ien

t

assessm

en

t o

f all

the r

isks t

o t

he h

ealth

an

d s

afe

ty o

f h

is/

her

em

plo

yees (an

d n

on

-em

plo

yees c

arr

yin

g o

ut

wo

rk o

n t

he

em

plo

yer’s in

str

uctio

n).

If t

he e

mp

loyer

em

plo

ys m

ore

th

an

fi v

e e

mp

loyees,

the

fi n

din

gs o

f an

y r

isk a

ssessm

en

t (a

nd

ho

w t

he fi n

din

gs m

igh

t

aff

ect

an

y g

rou

ps o

f h

is/h

er

em

plo

yees id

en

tifi ed

as b

ein

g

esp

ecia

lly a

t risk (i.e.

an

y d

isab

led

em

plo

yees)) m

ust

be

reco

rded

.

Th

e e

mp

loyer

mu

st

ap

po

int

on

e o

r m

ore

co

mp

ete

nt

pers

on

to a

ssis

t w

ith

co

mp

lyin

g w

ith

sta

tuto

ry p

rovis

ion

s f

or

health

an

d s

afe

ty (i.e.

a h

ealth

an

d s

afe

ty o

ffi c

er)

.

Th

e e

mp

loyer

will

pro

vid

e a

ll em

plo

yees w

ith

co

mp

reh

en

sib

le

an

d r

ele

van

t in

form

atio

n o

n r

isks t

o t

heir h

ealth

an

d a

ny

pre

ven

tative m

easu

res (i.e.

the h

ealth

an

d s

afe

ty r

isk

assessm

en

t/p

olic

y).

6T

he P

rovis

ion a

nd

Use o

f W

ork

Eq

uip

ment

Reg

ula

tio

ns 1

99

8

(PU

WE

R)

Th

ese R

eg

ula

tio

ns a

pp

ly t

o w

ork

eq

uip

men

t u

sed

by e

mp

loyees a

t

wo

rk,

an

d e

nsu

re t

hat

em

plo

yers

are

resp

on

sib

le f

or

the e

qu

ipm

en

t

used

by e

mp

loyees a

t w

ork

.

Every

em

plo

yer

sh

all

en

su

re t

hat

wo

rk e

qu

ipm

en

t is

main

tain

ed

in

an

effi c

ien

t sta

te,

in e

ffi c

ien

t w

ork

ing

ord

er

an

d

in g

oo

d r

ep

air.

(R

eg

ula

tio

n 5

(1) M

ain

ten

an

ce (P

UW

ER

, 1

99

8))

Th

e R

eg

ula

tio

ns o

nly

ap

ply

to

wo

rk e

qu

ipm

en

t u

sed

by

wo

rkers

at

wo

rk.

Th

is in

clu

des a

ll w

ork

eq

uip

men

t (fi x

ed

,

tran

sp

ort

ab

le o

r p

ort

ab

le) co

nn

ecte

d t

o a

so

urc

e o

f ele

ctr

ical

en

erg

y. P

UW

ER

do

es n

ot

ap

ply

to

fi x

ed

in

sta

llatio

ns in

a

bu

ildin

g.

Th

e e

lectr

ical safe

ty o

f th

ese in

sta

llatio

ns is d

ealt

with

by t

he E

lectr

icity a

t W

ork

Reg

ula

tio

ns.


Nu

mb

er

Na

me

of

leg

isla

tio

nB

rie

f su

mm

ary

of

leg

isla

tio

nK

ey p

oin

ts/k

ey s

ec

tio

ns/s

ch

ed

ule

s

7C

ontr

ol o

f S

ub

sta

nces H

aza

rdo

us

to H

ealth R

eg

ula

tio

ns 2

002

(as a

mend

ed

)

Th

ese R

eg

ula

tio

ns p

lace a

gen

era

l

du

ty o

n a

n e

mp

loyer, p

roh

ibitin

g

the u

se o

f cert

ain

su

bsta

nces a

nd

to c

arr

y o

ut

risk a

ssessm

en

ts o

r

pre

ven

tative m

easu

res t

o e

nsu

re

that

em

plo

yees a

re n

ot

exp

osed

to

hazard

ou

s s

ub

sta

nces.

Em

plo

yers

mu

st

no

t carr

y o

ut

wo

rk t

hat

may e

xp

ose

em

plo

yees t

o h

azard

ou

s s

ub

sta

nces u

nle

ss a

su

itab

le a

nd

su

ffi c

ien

t risk a

ssessm

en

t h

as b

een

mad

e.

Em

plo

yers

mu

st

als

o t

ake s

tep

s t

o m

inim

ise t

he e

xp

osu

re o

f its e

mp

loyees t

o

su

ch

ris

k.

Ris

k a

ssessm

en

ts m

ust

be r

evie

wed

reg

ula

rly.

If

an

y r

isk

assessm

en

t sh

ow

s t

hat

em

plo

yees a

re a

t risk,

the e

mp

loyer

mu

st

pre

ven

t th

e r

isk o

f exp

osu

re o

r, if

no

t p

ossib

le,

co

ntr

ol

the r

isk t

o t

he f

ulle

st

exte

nt

po

ssib

le.

Every

em

plo

yer

mu

st

als

o e

nsu

re t

hat

pers

on

al p

rote

ctive

eq

uip

men

t, in

clu

din

g p

rote

ctive c

loth

ing

, is

pro

perly s

tore

d,

ch

ecked

at

su

itab

le in

terv

als

, an

d if

dis

co

vere

d t

o b

e

defe

ctive,

rep

aired

or

rep

laced

befo

re f

urt

her

use.

It is t

he

em

plo

yer’s r

esp

on

sib

ility

to

ch

eck t

hat

this

eq

uip

men

t is

eith

er

mad

e s

afe

or

co

rrectly d

estr

oyed

.

Wh

ere

th

e r

isk a

ssessm

en

t in

dic

ate

s t

hat

em

plo

yees a

re

at

risk,

the e

mp

loyer

has a

du

ty t

o a

deq

uate

ly m

on

ito

r its

em

plo

yees t

hro

ug

h a

su

itab

le m

on

ito

rin

g p

roced

ure

. R

eco

rds

mu

st

be k

ep

t o

f th

e m

on

ito

rin

g p

roced

ure

.

8W

ate

r S

up

ply

(W

ate

r F

itting

s)

Reg

ula

tio

ns 1

999

Th

ese R

eg

ula

tio

ns s

eek t

o r

eg

ula

te

an

yo

ne w

ho

in

sta

lls,

alters

,

co

nn

ects

or

dis

co

nn

ects

etc

. w

ate

r

fi tt

ing

s.

Th

e p

urp

ose o

f th

ese R

eg

ula

tio

ns

is t

o p

reven

t w

aste

, m

isu

se

or

co

nta

min

atio

n o

f w

ate

r, f

or

exam

ple

, to

pre

ven

t le

gio

nella

(Leg

ion

naire’s

dis

ease).

Wate

r fi tt

ing

s m

ust

no

t b

e in

sta

lled

, co

nn

ecte

d,

arr

an

ged

or

used

in

su

ch

a m

an

ner

that

they c

au

se w

aste

, m

isu

se,

un

du

e

co

nsu

mp

tio

n o

r co

nta

min

atio

n o

f w

ate

r.

Every

wate

r fi tt

ing

mu

st

be o

f an

ap

pro

priate

qu

alit

y a

nd

sta

nd

ard

. (T

he s

pecifi c

req

uirem

en

ts a

re s

et

ou

t in

Sch

ed

ule

2 o

f th

ese R

eg

ula

tio

ns).

Wh

ere

a w

ate

r fi tt

ing

is in

sta

lled

, altere

d,

co

nn

ecte

d o

r

dis

co

nn

ecte

d b

y a

n a

pp

roved

co

ntr

acto

r, t

he c

on

tracto

r

mu

st

pro

vid

e a

sig

ned

cert

ifi c

ate

sta

tin

g t

hat

the w

ate

r fi tt

ing

co

mp

lies w

ith

th

e r

eq

uirem

en

ts o

f th

ese R

eg

ula

tio

ns t

o t

he

pers

on

wh

o c

om

mis

sio

ned

th

e w

ork

.


Nu

mb

er

Na

me

of

leg

isla

tio

nB

rie

f su

mm

ary

of

leg

isla

tio

nK

ey p

oin

ts/k

ey s

ec

tio

ns/s

ch

ed

ule

s

9E

lectr

icity a

t W

ork

Reg

ula

tio

ns

1989 (E

AW

R) (S

I 1989/6

35)

Th

ese R

eg

ula

tio

ns im

po

se a

du

ty

on

every

em

plo

yer

an

d e

mp

loyee,

an

d s

elf-e

mp

loyed

pers

on

to

en

su

re s

afe

ty in

th

e w

ork

pla

ce in

rela

tio

n t

o e

lectr

icity.

Th

ese R

eg

ula

tio

ns a

lso

im

po

se a

du

ty o

n e

mp

loyers

to

carr

y o

ut

PAT

testin

g o

n a

ll ele

ctr

ical syste

ms a

nd

eq

uip

men

t.

Th

e e

mp

loyer

mu

st

en

su

re t

hat

all

syste

ms a

re m

ain

tain

ed

so

as t

o p

reven

t d

an

ger, a

nd

th

at

an

y e

qu

ipm

en

t p

rovid

ed

to

pro

tect

pers

on

s w

ork

ing

on

or

near

ele

ctr

ical eq

uip

men

t sh

all

be s

uitab

le a

nd

pro

perly m

ain

tain

ed

.

10

The D

efe

ctive P

rem

ises A

ct

19

72

Th

is A

ct

imp

oses a

du

ty o

n

the lan

dlo

rd t

o p

reven

t in

jury

to p

ers

on

s o

n t

he p

rem

ises b

y

en

su

rin

g t

he p

rem

ises a

re p

rop

erly

main

tain

ed

.

If t

he t

en

an

cy p

laces a

n o

blig

atio

n o

n t

he lan

dlo

rd t

o

main

tain

an

d r

ep

air t

he p

rem

ises t

he lan

dlo

rd o

wes a

gen

era

l

du

ty o

f care

to

an

yb

od

y w

ho

mig

ht

be a

t risk f

rom

pers

on

al

inju

ry o

r d

am

ag

e t

o t

heir p

rop

ert

y c

au

sed

by a

ny d

efe

ct

in

the g

en

era

l sta

te o

r re

pair o

f th

e p

rem

ises.

Th

e lan

dlo

rd o

wes t

his

du

ty if

he/s

he k

no

ws o

f an

y d

efe

ct

that

need

s t

o b

e r

ep

aired

/rem

ed

ied

, o

r if h

e/s

he o

ug

ht

to

have k

no

wn

of

su

ch

defe

ct.

11

Co

ntr

ol o

f A

sb

esto

s R

eg

ula

tio

ns

2006 (S

I 2006/2

739)

Th

ese R

eg

ula

tio

ns p

lace a

n

ob

ligatio

n o

n t

he d

uty

ho

lder

to a

ssess w

heth

er

or

no

t an

y

asb

esto

s is p

resen

t o

n t

he

pre

mis

es.

Th

ese R

eg

ula

tio

ns w

ill g

en

era

lly n

ot

ap

ply

wh

ere

exp

osu

re o

f

em

plo

yees t

o a

sb

esto

s is g

en

era

lly lo

w.

Th

e d

uty

ho

lder

(every

pers

on

wh

o h

as,

by v

irtu

e o

f a c

on

tract

or

ten

an

cy,

an

ob

ligatio

n t

o m

ain

tain

or

rep

air a

pre

mis

es)

mu

st

carr

y o

ut

a s

uitab

le a

nd

su

ffi c

ien

t assessm

en

t to

ascert

ain

wh

eth

er

or

no

t asb

esto

s is o

n t

he p

rem

ises.

Th

e a

ssessm

en

t m

ust

be r

eco

rded

an

d r

evie

wed

if

the

du

tyh

old

er

has a

ny r

easo

n t

o s

usp

ect

that

the a

ssessm

en

t is

no

lo

ng

er

valid

.

If t

he d

uty

ho

lder

is e

mp

loyin

g p

ers

on

s t

o c

arr

y o

ut

wo

rk

at

the p

rem

ises,

a s

uitab

le a

nd

su

ffi c

ien

t assessm

en

t o

f

the r

isk t

o t

he h

ealth

of

an

y e

mp

loyee m

ust

be m

ad

e.

Th

is

assessm

en

t sh

ou

ld a

lso

be r

eco

rded

an

d r

evie

wed

as a

bo

ve.


Nu

mb

er

Na

me

of

leg

isla

tio

nB

rie

f su

mm

ary

of

leg

isla

tio

nK

ey p

oin

ts/k

ey s

ec

tio

ns/s

ch

ed

ule

s

12

Reg

ula

tory

Refo

rm (F

ire S

afe

ty)

Ord

er

2005 (S

I 2005/1

549)

Th

ese R

eg

ula

tio

ns im

po

se a

resp

on

sib

ility

on

em

plo

yers

to

cre

ate

a s

afe

wo

rkin

g e

nviro

nm

en

t

to its

em

plo

yees in

rela

tio

n t

o fi r

e

safe

ty.

Th

e r

esp

on

sib

le p

ers

on

(em

plo

yer

or

pers

on

in

co

ntr

ol o

f a

pre

mis

es) m

ust

take s

uch

gen

era

l fi re

pre

cau

tio

ns t

o e

nsu

re

the s

afe

ty o

f h

is/h

er

em

plo

yees a

nd

oth

er

occu

pan

ts o

f th

e

pre

mis

es.

Th

e r

esp

on

sib

le p

ers

on

mu

st

make a

su

itab

le a

nd

su

ffi c

ien

t

assessm

en

t o

f an

y r

isks t

o h

is/h

er

em

plo

yees/o

ccu

pan

ts

wh

o m

igh

t b

e e

xp

osed

to

an

y p

ote

ntial fi re

ris

ks.

Th

e r

esp

on

sib

le p

ers

on

mu

st

reco

rd t

he r

isk a

ssessm

en

t

if h

e/s

he e

mp

loys fi v

e o

r m

ore

peo

ple

, th

ere

is a

lic

en

ce in

forc

e in

rela

tio

n t

o t

he p

rem

ises,

or

there

is a

n a

ltera

tio

n

no

tice r

eq

uirin

g t

he a

ssessm

en

t to

be c

arr

ied

ou

t.

Th

e r

ele

van

t p

ers

on

mu

st

en

su

re t

hat

the p

rem

ises a

re

eq

uip

ped

with

fi r

e fi g

htin

g e

qu

ipm

en

t an

d fi r

e d

ete

cto

rs a

nd

ala

rms,

that

there

are

ad

eq

uate

fi r

e e

scap

es a

nd

he/s

he m

ust

no

min

ate

a c

om

pete

nt

pers

on

to

im

ple

men

t safe

ty m

easu

res.

13

Pre

ssure

Syste

ms a

nd

Safe

ty

Reg

ula

tio

ns 2

000 (P

SS

R)

(SI 2000/1

28)

Th

ese R

eg

ula

tio

ns im

po

se a

du

ty o

f care

on

an

y p

ers

on

wh

o

desig

ns,

man

ufa

ctu

res,

imp

ort

s o

r

su

pp

lies a

ny p

ressu

re s

yste

m o

r

an

y a

rtic

le w

hic

h is in

ten

ded

to

be

a c

om

po

nen

t p

art

of

an

y p

ressu

re

syste

m.

Th

e u

ser

sh

all

no

t o

pera

te t

he p

ressu

re s

yste

m o

r allo

w it

to

be o

pera

ted

un

less h

e/s

he h

as e

sta

blis

hed

th

e s

afe

op

era

tin

g

limits o

f th

at

syste

m.

Th

e u

ser

is a

lso

resp

on

sib

le f

or

en

su

rin

g t

hat

the p

ressu

re

syste

m is p

rop

erly e

xam

ined

an

d m

ain

tain

ed

. A

ll m

ain

ten

an

ce

ch

ecks s

ho

uld

be r

eco

rded

, an

d t

he u

ser

mu

st

keep

a r

eco

rd

of

the last

rep

ort

mad

e,

or

an

y o

ther

rep

ort

still

rele

van

t to

th

e

co

nd

itio

n o

f th

e p

ressu

re s

yste

m.


Nu

mb

er

Na

me

of

leg

isla

tio

nB

rie

f su

mm

ary

of

leg

isla

tio

nK

ey p

oin

ts/k

ey s

ec

tio

ns/s

ch

ed

ule

s

14

Gas S

afe

ty (In

sta

llatio

n a

nd

Use)

Reg

ula

tio

ns 1

998 (S

I 1998

/24

51

)

Th

ese R

eg

ula

tio

ns im

po

se a

du

ty

on

an

em

plo

yer

or

self-e

mp

loyed

pers

on

to

take r

easo

nab

le s

tep

s t

o

en

su

re t

hat

the p

ers

on

un

dert

akin

g

wo

rk r

ele

van

t to

gas s

afe

ty is

ap

pro

ved

un

der

the H

ealth

an

d

Safe

ty E

xecu

tive (H

SE

).

Th

e r

esp

on

sib

le p

ers

on

fo

r an

y p

rem

ises m

ust

no

t u

se a

gas

ap

plia

nce,

or

perm

it a

gas a

pp

lian

ce t

o b

e u

sed

, if a

t an

y

tim

e h

e/s

he k

no

ws o

r h

as r

easo

n t

o s

usp

ect

that

it m

igh

t b

e

dan

gero

us.

If a

n e

mp

loyer

req

uires a

ny w

ork

in

rela

tio

n t

o a

gas fi t

tin

g

to b

e c

arr

ied

ou

t, h

e/s

he m

ust

en

su

re t

hat

the p

ers

on

un

dert

akin

g t

hat

wo

rk is,

or

is e

mp

loyed

by,

a m

em

ber

of

a

cla

ss o

f p

ers

on

s a

pp

roved

by t

he H

SE

.

Th

e e

mp

loyer

mu

st

en

su

re t

hat

an

y g

as a

pp

lian

ce,

insta

llatio

n p

ipe w

ork

or

fl u

e in

sta

lled

at

the p

rem

ises is

main

tain

ed

in

a s

afe

co

nd

itio

n.

A lan

dlo

rd m

ust

–

(a)

en

su

re t

hat

each

ap

plia

nce a

nd

fl u

e is c

hecked

fo

r

safe

ty w

ith

in 1

2 m

on

ths o

f in

sta

llatio

n,

an

d t

hen

reg

ula

rly

ch

ecked

at

12

mo

nth

in

terv

als

;

(b)

en

su

re t

hat

a r

eco

rd in

resp

ect

of

an

y a

pp

lian

ce o

r fl u

e s

o

ch

ecked

is m

ad

e a

nd

reta

ined

fo

r a p

erio

d o

f tw

o y

ears

fro

m t

he d

ate

of

that

ch

eck.


Nu

mb

er

Na

me

of

leg

isla

tio

nB

rie

f su

mm

ary

of

leg

isla

tio

nK

ey p

oin

ts/k

ey s

ec

tio

ns/s

ch

ed

ule

s

15

Co

nstr

uctio

n (D

esig

n a

nd

Manag

em

ent)

Reg

ula

tio

ns 2

00

7

(CD

M)

Th

ese R

eg

ula

tio

ns im

po

se a

du

ty

on

co

nstr

uctio

n m

an

ag

ers

to

man

ag

e a

nd

co

-ord

inate

pro

jects

in

a c

om

pete

nt

man

ner.

Th

e c

lien

t m

ust

no

t –

(a)

ap

po

int

or

en

gag

e a

CD

M c

o-o

rdin

ato

r, d

esig

ner,

prin

cip

al co

ntr

acto

r o

r co

ntr

acto

r u

nle

ss h

e/s

he h

as

taken

reaso

nab

le s

tep

s t

o e

nsu

re t

hat

the p

ers

on

to

be

ap

po

inte

d o

r en

gag

ed

is c

om

pete

nt;

(b)

accep

t su

ch

an

ap

po

intm

en

t o

r en

gag

em

en

t u

nle

ss h

e/

sh

e is c

om

pete

nt;

(c)

arr

an

ge f

or, o

r in

str

uct,

a w

ork

er

to c

arr

y o

ut

or

man

ag

e

desig

n o

r co

nstr

uctio

n w

ork

un

less t

he w

ork

er

is

co

mp

ete

nt,

un

der

the s

up

erv

isio

n o

f a c

om

pete

nt

pers

on

.

Every

clie

nt

sh

all

en

su

re t

hat

the a

rran

gem

en

ts m

ad

e f

or

by p

ers

on

s m

an

ag

ing

th

e p

roje

ct

(in

clu

din

g h

im/h

ers

elf) are

su

itab

le t

o e

nsu

re t

hat

the c

on

str

uctio

n w

ork

can

be c

arr

ied

ou

t w

ith

ou

t risk t

o t

he h

ealth

an

d s

afe

ty o

f an

y p

ers

on

.

Every

pla

ce o

f w

ork

sh

all

be m

ad

e a

nd

kep

t safe

fo

r an

y

pers

on

at

wo

rk t

here

.

NB

. ‘c

lien

t’ m

ean

s a

pers

on

wh

o in

th

e c

ou

rse o

r fu

rth

era

nce

of

a b

usin

ess –

(a)

seeks o

r accep

ts t

he s

erv

ices o

f an

oth

er

wh

ich

may b

e

used

in

th

e c

arr

yin

g o

ut

of

a p

roje

ct

for

him

/her;

or

(b)

carr

ies o

ut

a p

roje

ct

him

/hers

elf;


Nu

mb

er

Na

me

of

leg

isla

tio

nB

rie

f su

mm

ary

of

leg

isla

tio

nK

ey p

oin

ts/k

ey s

ec

tio

ns/s

ch

ed

ule

s

16

The L

ifting

Op

era

tio

ns a

nd

Liftin

g

Eq

uip

ment

Reg

ula

tio

ns 1

99

8

Th

ese R

eg

ula

tio

ns e

nsu

re t

hat

all

liftin

g e

qu

ipm

en

t an

d a

ctivitie

s a

re

op

era

ted

an

d c

arr

ied

ou

t safe

ly

with

in t

he w

ork

pla

ce.

Every

em

plo

yer

mu

st

en

su

re t

hat

liftin

g e

qu

ipm

en

t is

of

ad

eq

uate

str

en

gth

. E

very

em

plo

yer

mu

st

als

o e

nsu

re t

hat

liftin

g e

qu

ipm

en

t m

ust

be d

esig

ned

to

pre

ven

t a p

ers

on

usin

g

it b

ein

g c

rush

ed

, tr

ap

ped

or

str

uck,

or

gen

era

lly e

xp

osed

to

dan

ger.

Mach

inery

an

d a

ccesso

ries f

or

liftin

g lo

ad

s s

ho

uld

be c

learly

mark

ed

to

in

dic

ate

th

eir s

afe

wo

rkin

g lo

ad

s.

All

liftin

g o

pera

tio

ns in

vo

lvin

g liftin

g e

qu

ipm

en

t m

ust

be

pro

perly p

lan

ned

, ap

pro

priate

ly s

up

erv

ised

an

d c

arr

ied

ou

t in

a s

afe

man

ner.

LA

ND

LO

RD

AN

D T

EN

AN

T

17

The L

and

lord

and

Tenant

Act

19

88

Th

is A

ct

imp

oses s

tatu

tory

du

ties

on

lan

dlo

rds in

co

nn

ectio

n w

ith

co

ven

an

ts t

o a

ssig

n,

un

derlet,

ch

arg

e o

r p

art

with

th

e p

ossessio

n

of

the p

rem

ises w

ith

ou

t co

nsen

t.

Th

is A

ct

ap

plie

s w

here

a t

en

an

cy in

clu

des a

co

ven

an

t th

at

an

occu

pie

r can

no

t assig

n,

un

derlet

etc

. th

e p

rem

ises

with

ou

t th

e c

on

sen

t o

f th

e lan

dlo

rd (su

ch

co

nsen

t n

ot

to b

e

un

reaso

nab

ly w

ith

held

).

If a

n o

ccu

pie

r serv

es a

writt

en

ap

plic

atio

n o

n t

he lan

dlo

rd t

o

assig

n,

un

derlet

etc

. th

e lan

dlo

rd m

ust

with

in a

reaso

nab

le

tim

e e

ith

er:

–

giv

e c

on

sen

t; o

r

–

if it

is r

easo

nab

le n

ot

to g

ive c

on

sen

t, s

erv

e o

n t

he

occu

pie

r w

ritt

en

no

tice o

f h

is/h

er

decis

ion

eith

er

co

mp

lete

ly w

ith

ho

ldin

g h

is/h

er

co

nsen

t, o

r g

ivin

g h

is/h

er

co

nsen

t su

bje

ct

to c

ert

ain

co

nd

itio

ns.


Nu

mb

er

Na

me

of

leg

isla

tio

nB

rie

f su

mm

ary

of

leg

isla

tio

nK

ey p

oin

ts/k

ey s

ec

tio

ns/s

ch

ed

ule

s

18

The L

and

lord

and

Tenant

Act

19

54

Th

is A

ct

pro

vid

es s

ecu

rity

of

ten

ure

for

occu

pyin

g o

ccu

pie

rs u

nd

er

cert

ain

leases,

inclu

din

g leases f

or

occu

pyin

g p

rop

ert

y f

or

bu

sin

ess,

pro

fessio

nal o

r cert

ain

oth

er

pu

rpo

ses.

Te

rmin

ati

on

of

ten

an

cy b

y t

he

la

nd

lord

Th

e lan

dlo

rd m

ay t

erm

inate

a t

en

an

cy if

he/s

he g

ives n

otice

to t

he o

ccu

pie

r, p

rovid

ing

th

e n

otice is g

iven

no

t m

ore

th

an

12

mo

nth

s a

nd

no

t le

ss t

han

6 m

on

ths b

efo

re t

he d

ate

of

term

inatio

n o

f th

e t

en

an

cy.

Th

e L

an

dlo

rd m

ust

sta

te o

ne o

r m

ore

of

the s

tatu

tory

gro

und

s f

or

op

po

sin

g t

he t

en

an

cy in

th

e n

otice.

Oc

cu

pie

r’s r

eq

ue

st

for

a n

ew

te

na

nc

y

An

occu

pie

r can

req

uest

a n

ew

ten

an

cy w

here

th

e c

urr

en

t

ten

an

cy is f

or

a t

erm

gre

ate

r th

an

on

e y

ear. (T

his

in

clu

des a

rolli

ng

co

ntr

act

ten

an

cy t

hat

has laste

d f

or

over

a y

ear)

.

An

occu

pie

r is

no

t ab

le t

o m

ake t

his

req

uest

if t

he lan

dlo

rd

has a

lread

y g

iven

no

tice t

o t

erm

inate

th

e c

urr

en

t te

nan

cy.

If t

he lan

dlo

rd h

as f

aile

d t

o g

ive n

otice,

then

he/s

he m

ay

op

po

se t

he a

pp

licatio

n f

or

a n

ew

ten

an

cy w

ith

in t

wo

mo

nth

s

of

the o

ccu

pie

r m

akin

g t

he r

eq

uest,

sta

tin

g t

heir g

rou

nd

s f

or

op

po

sitio

n.


Nu

mb

er

Na

me

of

leg

isla

tio

nB

rie

f su

mm

ary

of

leg

isla

tio

nK

ey p

oin

ts/k

ey s

ec

tio

ns/s

ch

ed

ule

s

19

Land

lord

and

Tenant

(Co

ven

an

ts)

Act

1995

Th

is A

ct

imp

oses n

ew

ru

les o

n

ten

an

cie

s d

ate

d o

n o

r aft

er

1 J

an

uary

19

96

, co

ncern

ing

th

e

rela

tio

nsh

ip b

etw

een

lan

dlo

rds a

nd

occu

pie

rs.

Wh

en a

ny o

ccu

pie

r assig

ns a

ten

an

cy,

th

e ‘

new

’ o

ccu

pie

r

beco

mes b

ou

nd

by a

ny o

ccu

pie

r co

ven

an

ts (su

bje

ct

to

excep

tio

ns), a

nd

beco

mes e

ntitled

to

th

e b

en

efi t

of

the

lan

dlo

rd c

oven

an

ts (su

bje

ct

to e

xcep

tio

ns).

Wh

ere

th

e lan

dlo

rd a

ssig

ns a

ten

an

cy,

th

e ‘

new

’ la

nd

lord

beco

mes b

ou

nd

by t

he lan

dlo

rd c

oven

an

ts (su

bje

ct

to

excep

tio

ns), a

nd

beco

mes e

ntitled

to

th

e b

en

efi t

of

the

occup

ier

co

ven

an

ts (su

bje

ct

to e

xcep

tio

ns).

Th

e ‘o

rig

inal’ lan

dlo

rd a

nd

/or

occu

pie

r w

ill t

hen

be r

ele

ased

fro

m t

heir o

blig

atio

ns u

nd

er

the t

en

an

cy.

If a

ny c

oven

an

t o

f th

e t

en

an

cy c

on

fers

an

y r

igh

ts in

favo

ur

or

ag

ain

st

a m

an

ag

em

en

t co

mp

an

y, t

hen

it

sh

all

be t

reate

d a

s if

it w

as a

n o

ccu

pie

r co

ven

an

t exerc

isab

le b

y t

he lan

dlo

rd;

an

d/

or

a lan

dlo

rd c

oven

an

t exerc

isab

le b

y t

he o

ccu

pie

r.

20

The R

eg

ula

tory

Refo

rm (B

usin

ess

Tenancie

s) (E

ng

land

and

Wale

s)

Ord

er

2003 (S

I 2003/3

096)

Th

ese R

eg

ula

tio

ns r

efo

rm

leg

isla

tio

n in

rela

tio

n t

o b

usin

ess

ten

an

cie

s,

su

ch

as t

he L

an

dlo

rd

an

d T

en

an

t’s A

ct

19

54

.

Th

e lan

dlo

rd is e

ntitled

to

req

uest

the f

ollo

win

g in

form

atio

n

fro

m t

he o

ccu

pie

r:

(a)

wh

eth

er

the o

ccu

pie

r o

ccu

pie

s t

he p

rem

ises f

or

bu

sin

ess;

an

d

(b)

wh

eth

er

there

are

an

y s

ub

-ten

an

cie

s a

ffectin

g t

he

ten

an

cy.

21

Fin

ancia

l S

erv

ices a

nd

Mark

ets

Act

2000 (R

eg

ula

ted

Activitie

s) O

rder

2001 (S

I 2001/5

44)

and

(am

end

ed

by)

Fin

ancia

l S

erv

ices a

nd

Mark

ets

Act

2000 (R

eg

ula

ted

Activitie

s) O

rder

(No

2) 2003 (S

I 2003/1

476)

Th

ese R

eg

ula

tio

ns a

im t

o p

rote

ct

the g

en

era

l p

ub

lic w

hen

pu

rch

asin

g

insu

ran

ce b

y e

nsu

rin

g t

hat

all

pers

on

s w

ho

un

dert

ake in

su

ran

ce

med

iatio

n a

re r

eg

iste

red

an

d m

eet

str

ict

pro

fessio

nal re

qu

irem

en

ts.

If a

ny p

ers

on

is in

vo

lved

in

ad

vis

ing

, arr

an

gin

g,

ad

min

iste

rin

g

or

perf

orm

ing

in

su

ran

ce c

on

tracts

on

beh

alf o

f th

e lan

dlo

rd

(or

any o

ther

third

part

y), t

hey a

re c

on

du

ctin

g in

su

ran

ce

med

iatio

n a

ctivitie

s,

wh

ich

are

reg

ula

ted

activitie

s u

nd

er

these R

eg

ula

tio

ns.

No

on

e c

an

carr

y o

ut

a r

eg

ula

ted

activity u

nle

ss a

uth

orised

by t

he F

inan

cia

l S

erv

ices A

uth

ority

.


Nu

mb

er

Na

me

of

leg

isla

tio

nB

rie

f su

mm

ary

of

leg

isla

tio

nK

ey p

oin

ts/k

ey s

ec

tio

ns/s

ch

ed

ule

s

22

The C

RC

Energ

y E

ffi c

iency

Schem

e –

(C

RC

Energ

y E

ffi c

ien

cy

Ord

er

2010 –

SI 2010/7

68)

Th

e C

RC

En

erg

y E

ffi c

ien

cy

Sch

em

e is a

UK

man

dato

ry c

ap

an

d t

rad

e s

ch

em

e d

esig

ned

to

cu

t C

O2 e

mis

sio

ns a

nd

in

cre

ase

en

erg

y e

ffi c

ien

cy.

It

aff

ects

larg

e

co

mm

erc

ial an

d p

ub

lic s

ecto

r

org

an

isatio

ns in

clu

din

g lo

cal

au

tho

rities,

cen

tral g

overn

men

t

dep

art

men

ts,

ho

tel ch

ain

s,

ow

ners

of

larg

e o

ffi c

e a

nd

in

du

str

ial

pre

mis

es,

sh

op

pin

g c

en

tres,

etc

.

An

y o

rgan

isatio

n t

hat

meets

th

e q

ualifi

catio

n c

rite

ria

mu

st

part

icip

ate

in

th

is s

ch

em

e.

Part

icip

an

ts m

ust

rep

ort

em

issio

ns a

nd

pu

rch

ase ‘

allo

wan

ces’

to c

over

tho

se

em

issio

ns.

On

e ‘

allo

wan

ce’

mu

st

be p

aid

per

ton

ne o

f C

O2

em

issio

ns e

mitte

d.

Bo

th p

rop

ert

y m

an

ag

ers

an

d lan

dlo

rds s

ho

uld

be a

ware

th

at

the s

ch

em

e is a

imed

at

em

issio

ns o

f o

rgan

isatio

ns,

an

d n

ot

ind

ivid

ual p

rop

ert

ies.

An

org

an

isatio

n is v

iew

ed

wid

ely

– a

gro

up

of

co

mp

an

ies is c

on

sid

ere

d t

o b

e o

ne o

rgan

isatio

n.

Th

e p

ers

on

resp

on

sib

le f

or

payin

g t

he ‘

allo

wan

ces’

will

vary

dep

en

din

g o

n t

he c

ircu

msta

nces.

Gen

era

lly s

peakin

g,

the p

ers

on

resp

on

sib

le w

ill b

e t

he p

ers

on

wh

o h

as a

direct

ag

reem

en

t w

ith

th

e e

nerg

y s

up

plie

r an

d w

ho

receiv

es t

he

ben

efi t

of

the e

nerg

y s

up

plie

d.

Th

e b

ill p

ayer

will

no

rmally

eith

er

be t

he lan

dlo

rd o

r o

ccu

pie

r d

ep

en

din

g o

n n

otice o

f

co

ntr

act.

It m

ay b

e t

he c

ase t

hat

an

occu

pie

r o

nly

occu

pie

s p

art

of

a

pre

mis

es a

nd

th

at

the lan

dlo

rd (su

pp

ort

ed

by t

he p

rop

ert

y

man

ag

er)

is r

esp

on

sib

le f

or

payin

g t

he b

ills f

or

the c

om

mo

n

part

s o

f an

y b

uild

ing

. C

are

ful co

nsid

era

tio

n s

ho

uld

be g

iven

to w

ho

is r

esp

on

sib

le f

or

payin

g t

he ‘

allo

wan

ces’

an

d h

ow

these p

aym

en

ts s

ho

uld

be m

an

ag

ed

.


Nu

mb

er

Na

me

of

leg

isla

tio

nB

rie

f su

mm

ary

of

leg

isla

tio

nK

ey p

oin

ts/k

ey s

ec

tio

ns/s

ch

ed

ule

s

23

Energ

y P

erf

orm

ance o

f B

uild

ing

s

(Cert

ifi c

ate

s a

nd

Insp

ectio

ns)

(Eng

land

and

Wale

s) R

eg

ula

tio

ns

2007

Th

ese R

eg

ula

tio

ns im

po

se a

du

ty o

n t

he lan

dlo

rd t

o p

resen

t

a p

rosp

ective o

ccu

pie

r (o

r

pro

sp

ective b

uyer)

with

an

En

erg

y

Perf

orm

an

ce C

ert

ifi c

ate

wh

en

ren

tin

g (o

r selli

ng

) a p

rop

ert

y.

En

erg

y P

erf

orm

an

ce

Ce

rtifi

ca

tes

Th

e r

ele

van

t p

ers

on

mu

st

make a

vaila

ble

fre

e o

f ch

arg

e a

valid

en

erg

y p

erf

orm

an

ce c

ert

ifi c

ate

to

an

y p

rosp

ective b

uyer

or

occu

pie

r at

the e

arlie

st

op

po

rtu

nity.

Th

e e

nerg

y p

erf

orm

an

ce c

ert

ifi c

ate

mu

st

be a

cco

mp

an

ied

by

a r

eco

mm

en

datio

n r

ep

ort

.

A r

eco

mm

en

datio

n r

ep

ort

is a

rep

ort

co

nta

inin

g

reco

mm

en

datio

ns f

or

the im

pro

vem

en

t o

f th

e e

nerg

y

perf

orm

an

ce o

f th

e b

uild

ing

, an

d is issu

ed

by t

he e

nerg

y

assesso

r w

ho

issu

ed

th

e e

nerg

y p

erf

orm

an

ce c

ert

ifi c

ate

.

Insp

ec

tio

ns o

f a

ir-c

on

dit

ion

ing

syste

ms

It is t

he r

ele

van

t p

ers

on

’s d

uty

to

en

su

re t

hat

the

air-c

on

ditio

nin

g s

yste

m is in

sp

ecte

d b

y a

n e

nerg

y a

ssesso

r

at

reg

ula

r in

terv

als

at

least

every

fi v

e y

ears

.

Th

e r

ele

van

t p

ers

on

mu

st

keep

th

e m

ost

recen

t in

sp

ectio

n

rep

ort

mad

e b

y a

n e

nerg

y a

ssesso

r.

Th

e ‘

rele

van

t p

ers

on

’ is

eith

er

the s

elle

r, lan

dlo

rd o

r (fo

r th

e

pu

rpo

ses o

f air-c

on

ditio

nin

g s

yste

ms) p

ers

on

in

co

ntr

ol o

f th

e

rele

van

t p

art

of

the p

rem

ises.


Nu

mb

er

Na

me

of

leg

isla

tio

nB

rie

f su

mm

ary

of

leg

isla

tio

nK

ey p

oin

ts/k

ey s

ec

tio

ns/s

ch

ed

ule

s

24

Private

Security

Ind

ustr

y A

ct

20

01

Th

is A

ct

esta

blis

hed

th

e S

ecu

rity

Ind

ustr

y A

uth

ority

, w

hic

h r

eg

ula

tes,

revie

ws a

nd

mo

nito

rs t

he p

rivate

secu

rity

in

du

str

y. P

art

icip

an

ts o

f

this

in

du

str

y m

ust

have a

lic

en

ce t

o

carr

y o

ut

cert

ain

sp

ecifi e

d s

ecu

rity

activitie

s.

Th

e c

urr

en

t d

esig

nate

d s

ecto

rs o

r activitie

s t

hat

mu

st

be

co

vere

d b

y a

lic

en

ce a

re a

s f

ollo

ws:

•

secu

rity

gu

ard

ing

– u

nd

er

co

ntr

act

•

do

or

su

perv

iso

rs –

un

der

co

ntr

act

an

d in

-ho

use

•

veh

icle

im

mo

bili

sin

g –

un

der

co

ntr

act

an

d in

-ho

use

•

private

in

vestig

atio

n –

un

der

co

ntr

act

•

secu

rity

co

nsu

ltan

ts –

un

der

co

ntr

act

•

keyh

old

ers

– u

nd

er

co

ntr

act.

Th

e f

ollo

win

g c

ate

go

ries o

f p

eo

ple

will

need

lic

en

ces:

•

secu

rity

co

ntr

acto

rs,

directo

rs o

f secu

rity

co

mp

an

ies a

nd

part

ners

in

secu

rity

fi r

ms

•

em

plo

yees o

f secu

rity

co

ntr

acto

rs,

secu

rity

co

mp

an

ies

an

d s

ecu

rity

fi r

ms

•

ag

en

cy w

ork

ers

perf

orm

ing

th

e d

esig

nate

d d

uties

•

pers

on

s w

ho

man

ag

e o

r su

perv

ise s

ecu

rity

op

era

tives

su

pp

lied

un

der

co

ntr

act

by a

secu

rity

co

ntr

acto

r (b

ut

no

t

in-h

ou

se s

up

erv

iso

rs o

f co

ntr

acto

rs)

•

ag

en

cy-s

up

plie

d m

an

ag

ers

or

su

perv

iso

rs o

f secu

rity

op

era

tives s

up

plie

d u

nd

er

co

ntr

act

•

directo

rs o

f secu

rity

co

mp

an

ies a

nd

part

ners

in

secu

rity

fi rm

s w

ho

do

no

t th

em

selv

es c

arr

y o

ut

the d

esig

nate

d

activitie

s

•

in-h

ou

se d

oo

r su

perv

iso

rs a

nd

veh

icle

im

mo

bili

sers

an

d

their e

mp

loyers

, m

an

ag

ers

an

d s

up

erv

iso

rs

•

oth

ers

wh

o im

mo

bili

se v

eh

icle

s o

n p

rivate

lan

d a

gain

st

a

rele

ase f

ee.


Nu

mb

er

Na

me

of

leg

isla

tio

nB

rie

f su

mm

ary

of

leg

isla

tio

nK

ey p

oin

ts/k

ey s

ec

tio

ns/s

ch

ed

ule

s

25

Tra

nsfe

r o

f U

nd

ert

akin

gs

(Pro

tectio

n o

f E

mp

loym

ent)

Reg

ula

tio

ns 2

006 (S

I 2006

/24

6)

(TU

PE

)

Th

ese R

eg

ula

tio

ns w

ere

pu

t in

pla

ce t

o p

rote

ct

em

plo

yees d

urin

g

the t

ran

sfe

r o

f an

y b

usin

ess,

inclu

din

g a

serv

ice p

rovis

ion

ch

an

ge.

Th

ese R

eg

ula

tio

ns a

pp

ly t

o a

serv

ice p

rovis

ion

ch

an

ge.

Th

is

inclu

des a

pro

pert

y m

an

ag

er

pro

vid

ing

serv

ices o

n b

eh

alf o

f

the lan

dlo

rd.

In s

um

mary

th

ese R

eg

ula

tio

ns m

igh

t p

ote

ntially

ap

ply

on

ap

po

intm

en

t o

f th

e p

rop

ert

y m

an

ag

er

or

term

inatio

n

of

an

ap

po

intm

en

t if t

here

are

an

y e

mp

loyees s

pen

din

g

a s

ign

ifi c

an

t am

ou

nt

of

tim

e d

ed

icate

d t

o t

he a

cco

un

t

or

pro

pert

y. If

there

is s

uch

a p

ers

on

th

en

th

ey m

igh

t b

e

tran

sfe

rred

to

or

fro

m t

he p

rop

ert

y m

an

ag

er.

Un

less a

n e

mp

loyee o

bje

cts

to

bein

g e

mp

loyed

by t

he n

ew

em

plo

yer, t

he c

on

tract

of

em

plo

ym

en

t o

f th

at

pers

on

will

no

t

be t

erm

inate

d.

An

y e

mp

loym

en

t co

ntr

act

wo

uld

tra

nsfe

r to

th

e n

ew

em

plo

yer, a

s t

ho

ug

h it

was o

rig

inally

mad

e b

etw

een

th

e

em

plo

yee a

nd

th

e n

ew

em

plo

yer.

Up

on

th

e t

ran

sfe

r, a

ll th

e r

igh

ts o

f th

e o

ld e

mp

loyer

in r

ela

tio

n

to t

he e

mp

loym

en

t co

ntr

act

will

tra

nsfe

r to

th

e n

ew

em

plo

yer.

Th

e n

ew

em

plo

yer

will

als

o b

e r

esp

on

sib

le f

or

an

y A

ct

or

om

issio

n t

hat

the o

ld e

mp

loyer

co

mm

itte

d b

efo

re t

he t

ran

sfe

r

(bu

t it is c

om

mo

n t

o r

eallo

cate

lia

bili

ty in

co

ntr

act)

.

An

y c

on

tract

of

em

plo

ym

en

t th

at

is t

ran

sfe

rred

can

no

t b

e

varied

un

less t

he s

ole

reaso

n f

or

the v

ariatio

n is:

(i)

the t

ran

sfe

r itself,

or

(ii)

a r

easo

n c

on

necte

d w

ith

th

e t

ran

sfe

r th

at

is n

ot

eco

no

mic

, te

ch

nic

al o

r an

org

an

isatio

nal re

aso

n e

nta

ilin

g

ch

an

ges in

th

e w

ork

forc

e.


Nu

mb

er

Na

me

of

leg

isla

tio

nB

rie

f su

mm

ary

of

leg

isla

tio

nK

ey p

oin

ts/k

ey s

ec

tio

ns/s

ch

ed

ule

s

26

Data

Pro

tectio

n A

ct

1998

Th

is A

ct

reg

ula

tes t

he p

rocessin

g

of

info

rmatio

n r

ela

tin

g t

o

ind

ivid

uals

, in

clu

din

g t

he o

bta

inin

g,

ho

ldin

g,

use o

r d

isclo

su

re o

f su

ch

info

rmatio

n (d

ata

co

ntr

olle

rs).

Pers

on

al d

ata

mu

st

no

t b

e p

rocessed

by a

data

co

ntr

olle

r

un

less a

n e

ntr

y is m

ad

e o

n t

he r

eg

iste

r, w

hic

h is m

ain

tain

ed

by t

he in

form

atio

n c

om

mis

sio

ner.

Th

e c

om

mis

sio

ner

is a

pp

oin

ted

to

en

su

re t

hat

data

co

ntr

olle

rs c

om

ply

with

th

e p

rovis

ion

s o

f th

is A

ct.

An

y d

ata

co

ntr

olle

r w

ho

wis

hes t

o b

e a

dd

ed

to

th

e r

eg

iste

r

sh

all

giv

e a

no

tifi catio

n t

o t

he in

form

atio

n c

om

mis

sio

ner. A

no

tifi catio

n m

ust

sp

ecify a

gen

era

l d

escrip

tio

n o

f m

easu

res

he/s

he w

ill t

ake t

o e

nsu

re c

om

plia

nce w

ith

data

pro

tectio

n

prin

cip

les.

Th

e n

otifi catio

n m

ust

be a

cco

mp

an

ied

by a

fee.

Su

bje

ct

to c

ert

ain

excep

tio

ns,

the d

ata

co

ntr

olle

r m

ust,

with

in

21

days o

f re

ceiv

ing

a w

ritt

en

req

uest

fro

m a

ny d

ata

su

bje

ct,

make t

he r

ele

van

t p

art

icu

lars

availa

ble

to

th

at

pers

on

in

writing

fre

e o

f ch

arg

e.


Nu

mb

er

Na

me

of

leg

isla

tio

nB

rie

f su

mm

ary

of

leg

isla

tio

nK

ey p

oin

ts/k

ey s

ec

tio

ns/s

ch

ed

ule

s

27

Dis

ab

ility

Dis

crim

inatio

n A

ct

19

95

and

Dis

ab

ility

Dis

crim

inatio

n A

ct

20

05

Th

ese A

cts

im

po

se a

du

ty o

n

pers

on

s o

ccu

pyin

g a

pre

mis

es n

ot

to d

iscrim

inate

ag

ain

st

dis

ab

led

pers

on

s.

It is u

nla

wfu

l fo

r a p

ers

on

man

ag

ing

an

y p

rem

ises t

o

dis

crim

inate

ag

ain

st

a d

isab

led

pers

on

occu

pyin

g t

ho

se

pre

mis

es:

(a)

in t

he w

ay h

e/s

he p

erm

its t

he d

isab

led

pers

on

to

make

use o

f an

y b

en

efi ts

or

facili

ties;

(b)

by r

efu

sin

g o

r d

elib

era

tely

om

ittin

g t

o p

erm

it t

he d

isab

led

pers

on

to

make u

se o

f an

y b

en

efi ts

or

facili

ties;

or

(c)

by e

vic

tin

g t

he d

isab

led

pers

on

, o

r su

bje

ctin

g h

im/h

er

to

an

y o

ther

detr

imen

t.

It is a

lso

un

law

ful fo

r a p

ers

on

with

po

wer

to d

isp

ose o

f an

y

pre

mis

es t

o d

iscrim

inate

ag

ain

st

a d

isab

led

pers

on

:–

(a)

in t

he t

erm

s o

n w

hic

h h

e/s

he o

ffers

to

dis

po

se o

f th

ose

pre

mis

es t

o t

he d

isab

led

pers

on

;

(b)

by r

efu

sin

g t

o d

isp

ose o

f th

ose p

rem

ises t

o t

he d

isab

led

pers

on

; o

r

(c)

in h

is/h

er

treatm

en

t o

f th

e d

isab

led

pers

on

in

rela

tio

n t

o

an

y lis

t o

f p

ers

on

s in

need

of

pre

mis

es o

f th

at

descrip

tio

n.

28

The E

qualit

y A

ct

2010

Th

is A

ct

req

uires e

mp

loyers

(an

d

oth

ers

) to

have r

eg

ard

gen

era

lly

to r

ed

ucin

g s

ocio

-eco

no

mic

ineq

ualit

ies,

dis

crim

inatio

n a

nd

vic

tim

isatio

n a

nd

to

in

cre

ase

eq

ualit

y o

f o

pp

ort

un

ity.

Th

e A

ct

itself c

on

tain

s v

ery

deta

iled

in

form

atio

n a

nd

sp

ecifi c

ad

vic

e s

ho

uld

be s

ou

gh

t to

en

su

re

co

mp

lian

ce w

ith

it.

Th

e A

ct

co

vers

eq

ualit

y issu

es o

ver

man

y a

reas –

no

t ju

st

the

em

plo

ym

en

t o

f w

ork

ers

, it c

overs

th

e s

up

ply

of

serv

ices.


Property managers should ensure that they have a

comprehensive written contract with their landlords.

The written contract should set out clearly the scope

of services of the property manager and the amount

that the property manager gets paid.

All too often, property management arrangements

are too informal, either with no written contract at all

or a very brief written arrangement. Entering into an

informal property management contract of this nature

can present signifi cant risks to both the client and the

property manager:

(a) It will not be clear what the scope of the

property manager’s responsibilities are. Given

that the property manager has a duty of care

to the landlord, if a contract is unclear a court

may fi nd that a property manager did have

responsibility for an aspect of managing

the property the property manager had not

contemplated. This could pose considerable

risk and cost to the property manager.

(b) The property manager will often be handling

signifi cant sums of money and therefore it is

important that there is a clear understanding

between landlord and property manager how

those payments are calculated and sums

managed.

(c) In an informal contract it may not be clear how

much a property manager will be paid. This

means that a property manager risks being paid

less than expected.

(d) The length of the contract will be unclear,

which could mean the landlord, or the property

manager, could terminate on short notice.

This means that simply referring to managing a

property ‘in accordance with the principles of

good estate management’ with no further detail

is no longer an adequate approach.

A well drafted property management contract will

usually include the following:

(a) the identity of the property or properties – this

may seem like an obvious point but all too often

the property is identifi ed loosely, which will only

lead to confusion and risk.

(b) commencement and duration – the contract

should clearly set out when it starts its duration,

whether the contract is fi xed term or rolling,

whether either party can terminate on notice at

any time, and procedures in the event that the

landlord sells his/her interest in the property.

(c) scope of services – the contract would typically

include general obligations on the property

manager to provide the services. There should

be a detailed services schedule setting out

exactly the scope of the property manager’s

responsibilities. In particular handover transition

at the beginning and end of the property

manager’s appointment should be identifi ed.

(d) obligations of the landlord – it is important

that the property manager is provided with

all information that the landlord has available

relating to the property; therefore the contract

will need to make this responsibility of the

landlord clear.

(e) payment – the contract should make it clear

how much the property manager will be paid

and when and how this will be reconciled

against the service charge; for example, what is

the position if the building is empty or there are

voids and what impact does that have on the

property manager’s fee? If the contract is for a

signifi cant duration what are the mechanics to

alter the fee? To what extent can the property

manager deduct his/her fee from the service

charge account?

(f) liability – there should be basic clauses

protecting the property manager, limiting and

controlling his/her liability. Ideally there should

be a ‘force majeure’ clause, which makes it

clear that the property manager has no liability

if he/she is unable to supply the services due to

an event outside his/her reasonable control. See

8.4 for more detail on contract liability.

Appendix 2 Property management contract


(g) TUPE – given the signifi cant likelihood that an

employee of the property manager spends a

signifi cant amount of their time on a particular

account or a particular property, it is important

to consciously consider the risk of TUPE. If

there is any risk of TUPE applying, whether

at the time of the contract or in the future,

then TUPE clauses should be included. For

more information see at Appendix 2 the RICS

information paper, TUPE: Information for

property managers (2009).

(h) termination – the contract needs to make it

clear that the contract can be terminable by

either party if that party is in material breach

and to also allow the party to terminate if

the other party becomes insolvent. Detailed

insolvency clauses are often required to ensure

that the property manager is not in a position of

managing a property on behalf of the landlord

who has no money but who is not yet formally

insolvent.

(i) other parties – to what extent:

i. can either party assign the contract?

Assignment means transferring the benefi t

of the contract to another person (it is not

possible to transfer the ‘burden’ without

the agreement of all three parties). If the

contract is silent then usually the benefi t

will be freely assignable. The ideal position

is that the landlord cannot assign but the

property manager can assign. Usually

a landlord will object to that and so it is

normally agreed neither party can assign

without the other party’s consent (possibly

allowing the parties to freely assign within

the group).

ii. can the property manager subcontract its

responsibilities?

If the contract is silent on subcontracting

then normally the property manager can

freely subcontract. If the property manager

does subcontract, the property manager

remains responsible to the landlord for the

performance of the subcontractor.

iii. should any third parties (for example

members of the property manager’s group

or the landlord’s group) benefi t from the

contract?

It is normal to expressly state no third parties

have the benefi t of the contract.

(j) general clauses, for example:

i. confi dentiality; and

ii. law and jurisdiction (usually English law and

English courts).

It is an important part of a property manager’s risk

management to ensure that the property management

contract addresses and manages their level of

liability. This is important as normally the property

manager’s fee (and margin) is disproportionate to the

value of the building being managed. In other words

the potential risk is very different to the reward. The

RICS information paper, Limiting liability in property

management contracts (2009) goes into this in more

detail, but in summary:

• Make sure the contract is in writing and the

scope of the services is clear.

• Include a ‘force majeure’ clause – the

property manager will be liable for events

outside of his control (e.g. a fl ood) unless a

force majeure clause is included.

• Cap liability – it is normal for a property

management contract to include a cap on

liability. The amount will depend on the

building, the fee and key risks.

• Exclude indirect losses. These are losses

that are not, in broad terms, reasonably

foreseeable and are unlikely to be insured.

• Avoid giving indemnities – they extend

liabilities.

It is important that a property manager holds

appropriate professional indemnity insurance.

However, do not confuse holding insurance with

capping liability – for example, a property manager

agreeing with a landlord to hold £2 million of

professional indemnity insurance does not cap the

property manager’s liability to £2 million, it merely

means that the manager has agreed to have insurance

covering the fi rst £2 million of any losses.

Commercial property managementin England and Wales

RICS Practice Standards, UK

2nd edition, guidance note

Commercial property managementin England and Wales2nd edition, guidance note

This guidance note details best practice in the management ofcommercial property, with particular emphasis on how the person(s) incontrol of a building should manage, communicate and control incomeand expenditure, as well as minimise the various associated risks.

The guidance applies to all members who undertake propertymanagement for the landlord as managing agent, although the generalprinciples apply to any property manager.

The guidance note is focused primarily on the management ofcommercial properties in England and Wales, however, special mentionis made of mixed use developments. A summary of the main areas ofEnglish statute law relevant to the management of a commercialproperty is also provided.

rics.org/standards rics.org/standards

GN 89/2011

rics commercial property management in england and wales · that property managers should bear in...

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