Proactive Commercial Property Management With Reference to UK Law Only Essay

Proactive Commercial Property Management With Reference to UK Law Only assuming a FRI leases - Essay Example Landlords mainly prefer this form of lease given that they are responsible for all repairs in the period of the lease and the tenants settle insurance and other costs linked to the property. Under FRI lease, tenants are essentially responsible in conducting the repair and maintenance of the property. This highlights the needs for tenants to attempt to negotiate restrictions to this obligation. In the event that the FRI lease is applicable to a section of the premises, the repairs can be mainly undertaken by landlords, although, they will pursue to recover from the tenants the expenses incurred in the repairs through a service charge. As an ideal, the tenant liabilities should align with the property leased (Grabel 2011, p.109). In numerous cases, the freeholder may be deemed accountable to arranging the repairs in the event that the repairs impacts on the structure of the building or within the shared areas, but the leaseholders may be necessitated to pay a section, or all of the cos ts involved (Garner and Frith 2010, p.115). Largely, all leases outline that the leaseholder is responsible for looking after the occupied premises, which entails: internal decorations, repairs to appliances and furniture, repairs to floorboards, and repairs to plasterwork; nevertheless, the freeholder may be additionally responsible for arranging other forms of repairs such as the roof. In this case, it is apparent that repairs to the roof remain critical, and leaseholders have to pay for the repairs as the lease provides (Abbey and Richards 2009, p.6). Service charges represent the cost availing services to a certain area. Given that leases differ from one estate to another, there cannot be a solitary standard wording to the clauses demanding that a leaseholder to pay service charges. All leases compel the leaseholder to pay ‘service charges’ at the period and in the manner admitted in the lease (Abbey and Richards 2012, p.198). The core objectives of a service charge policy centres on accurately setting the provisions to align with the requirements of the Housing Corporation’s regulatory code. Key legislation relating to Proactive Commercial Property Management Landlord and tenant Act 1985 This outlines the core ground rules employed in setting service charges and outlining service charges, outlining the requirements for reasonableness, as well as for prior consultation of leaseholders. Section 18 (1) of the Act outlines service charge as the amount that is payable to the tenant dwell as a constituent or addition to the rent. The amount is payable, either directly or indirectly, to cover services, repairs, maintenance enhancements or insurance, landlord’s costs of management (Boyce and Lake 2006, p.75). Other provisions include Leasehold Reform Act 1993 that awards leaseholders the right to enquire for a management audit in cases where service charges re disputed; housing Act 1996 that awards leaseholders the liberty to appoint an d investigate the cost of repair works in cases where they are unreasonably high; common hold and leasehold reform act 2002 seeks to herald controls on additional administration charges. These entail amounts payable by a tenant as a section of or in further to rent (Kelsen 2007, p.357). A recent Court of Appeal case featuring Campbell v Daejan Properties Limited [2012] EWCA Civ 150 has served as a critical reminder to landlords. The lease of the maisonette (the premises) detailed and