BOVAEP Property Manager TPC cheat sheet

Property management is the operation, control, and oversight of real property to achieve the owner's objectives while preserving and enhancing asset value.

The four core functions of property management are: leasing and tenant relations, financial management, maintenance and operations, and risk management.

A property manager's fiduciary duties to the owner include loyalty, confidentiality, disclosure, accounting, and obedience to lawful instructions within the management agreement.

The management agreement must specify scope of services, fee structure, term, termination provisions, authority limits, and reporting requirements.

A property manager is typically an agent of the owner; agency law imposes duties of care, good faith, and full disclosure of material facts.

Professional standards require written policies on handling client funds, conflicts of interest, maintenance records, and tenant complaints.

Key performance indicators include occupancy rate, net operating income (NOI), operating expense ratio, arrears ratio, and maintenance completion time.

A property manager must maintain records for statutory periods and make them available to the owner and authorized auditors.

Delegation of management functions does not relieve the property manager of accountability to the owner; supervision remains required.

A lease is both a contract and a conveyance of an interest in land; the tenant holds a leasehold estate for the term granted.

Covenants of quiet enjoyment and non-derogation from grant protect the tenant's use and possession; breach may give rise to damages or termination.

The landlord's implied covenant of fitness for human habitation or repair obligations are governed by statute and common law; check the lease and local law.

Rent is a contractual obligation; failure to pay may trigger forfeiture, distress, or debt recovery, subject to statutory notice and court procedures.

Security deposits are often regulated: caps, separate accounting, return timelines, and itemized deductions are common statutory requirements.

Assignment transfers the entire leasehold; subletting transfers part of the term or premises; both may require landlord consent unless expressly excluded.

Breach and remedies: forfeiture clauses must be exercised in accordance with notice requirements; relief from forfeiture may be available to the tenant.

The landlord must not interfere with the tenant's lawful possession; harassment and unlawful eviction are civil and criminal offences in many jurisdictions.

Lease terms cannot override mandatory statutory protections; conflict between lease and statute is resolved in favour of the statute.

Planned preventive maintenance (PPM) schedules are based on manufacturer recommendations, statutory inspections, and asset criticality.

Reactive maintenance is triggered by tenant reports or failures; a work order system should record date, location, fault, action, and completion.

Condition surveys assess building fabric and services; findings feed capital expenditure forecasts and defect liability periods.

A defect is a failure of a building element to perform its intended function; latent defects may be hidden and appear after practical completion.

Defects liability periods typically run 6–24 months after handover; the contractor must rectify notified defects at no cost during that period.

Building services include HVAC, electrical, plumbing, fire protection, lifts, and security systems; each has statutory inspection intervals.

Thermal imaging and moisture meters are non-destructive tools for detecting water ingress, insulation gaps, and air leakage.

Maintenance records support warranty claims, insurance recovery, and defence against negligence allegations.

Deferred maintenance increases lifecycle cost; a backlog of repairs should be quantified and prioritized by risk and asset impact.

Net operating income (NOI) = effective gross income − operating expenses; it excludes debt service, capital expenditure, and income tax.

Operating expense ratio = operating expenses ÷ effective gross income; a lower ratio indicates more efficient operation.

A service charge budget estimates recoverable costs for the coming period; it must be apportioned fairly according to the lease or statute.

Service charge reconciliation compares actual expenditure to budgeted amounts; any surplus or deficit is adjusted in the next period.

Sinking funds (reserve funds) are accumulated for future major repairs; contributions should be based on lifecycle cost forecasts.

Cash flow = net operating income − debt service − capital expenditure; positive cash flow supports distributions and reserves.

Arrears management includes reminder letters, payment plans, and legal recovery; ageing reports track amounts by days overdue.

Budget variances should be investigated; a favourable variance may indicate underspending on necessary maintenance, not efficiency.

Service charge accounts must be transparent; tenants are entitled to see a summary of expenditure and how their share is calculated.

A valid lease requires parties, premises, term, rent, and intention to create a legal relationship; formalities vary by jurisdiction.

Tenant selection criteria should be objective and applied consistently: affordability, references, credit history, and intended use.

Pre-tenancy checks include identity verification, right-to-rent checks, references, and deposit collection in accordance with law.

A tenancy agreement should specify rent, deposit, term, break clauses, repair responsibilities, and rules on alterations and pets.

Occupancy management includes tracking lease start/end dates, renewal negotiations, and notice periods for termination.

Rent reviews may be fixed increases, index-linked, or market rent; the mechanism must be stated in the lease.

Handover and check-in procedures document condition and meter readings; a signed inventory reduces deposit disputes.

Break clauses must be exercised strictly according to their terms; failure to comply can leave the tenant bound for the full term.

Vacant possession requires the tenant to remove persons and goods; failure to do so may delay re-letting and trigger damages.

A risk assessment identifies hazards, evaluates likelihood and severity, and records control measures; it must be reviewed regularly.

The hierarchy of controls is: eliminate, substitute, engineering controls, administrative controls, and personal protective equipment.

Fire safety duties include means of escape, alarm systems, extinguishers, signage, and evacuation drills; records must be kept.

Statutory inspections cover lifts, pressure vessels, electrical installations, gas appliances, and fire systems; certificates must be retained.

Asbestos, lead paint, and legionella risks require surveys, management plans, and periodic monitoring in affected buildings.

Environmental compliance includes waste management, energy reporting, refrigerant handling, and pollution prevention.

Accident and incident reporting procedures must be in place; serious incidents may require notification to regulators.

Contractors must be vetted for competence and insurance; permits to work are required for high-risk activities such as hot works.

Water hygiene: legionella risk assessments and temperature monitoring are required for hot and cold water systems in managed buildings.

Ethical duties include honesty, integrity, fairness, transparency, and avoidance of conflicts of interest.

A conflict of interest arises when personal or financial interests could influence professional judgment; it must be disclosed and managed.

Client money must be held in a separate designated account and accounted for accurately; commingling with operating funds is prohibited.

Confidentiality obligations continue after the management agreement ends, subject to legal disclosure requirements.

Governance frameworks include delegated authority limits, board reporting, audit, and documented decision-making.

Complaints handling should be timely, documented, and fair; escalation routes and response times should be published.

Fair treatment of tenants includes non-discrimination, clear communication, and consistent enforcement of rules.

Gifts and hospitality policies set thresholds and require declaration to avoid undue influence.

Whistleblowing channels should allow staff and contractors to report misconduct without fear of retaliation.