BOVAEP Property Manager TPC key terms

The legal and professional obligation of a property manager to act with reasonable skill, prudence and foresight so that owners, occupiers and visitors are not exposed to foreseeable loss or harm.

A strict obligation to place the client's interests ahead of the manager's own, covering loyalty, confidentiality, avoidance of undisclosed conflict and proper accounting for all money handled.

The benchmark of skill and diligence expected of a competent property manager, commonly measured against accepted industry practice, statutory duties and the terms of the management agreement.

Failure to meet the standard of care owed to a client or third party, causing measurable loss, where the manager's conduct fell below what a reasonably competent practitioner would have done.

The contract appointing a manager and setting out scope of services, fees, delegated authority, reporting duties, termination rights and liability, and which governs the parties' relationship throughout the appointment.

The defined monetary and operational limits within which a manager may commit the owner, such as approving repairs or awarding contracts, beyond which owner consent is required.

A situation where a manager's personal, financial or related-party interest could improperly influence decisions taken for the client, requiring disclosure and, where necessary, withdrawal from the decision.

Holding funds belonging to clients, such as service charges and deposits, in designated trust or client accounts separate from the manager's own money, so client funds remain identifiable and protected.

An indefinite ownership interest in land, potentially lasting forever, giving the holder rights of possession and disposal subject to statutory controls, encumbrances and any leases granted over it.

A time-limited interest in land granted by a lease, carrying rights of exclusive possession for a defined term in exchange for rent and compliance with covenants.

A promise contained in a deed, such as a lease, to do or not do something; positive covenants require action like paying rent, while restrictive covenants limit use of the property.

A landlord's implied or express undertaking that the tenant may possess and use the premises without interference from the landlord or anyone claiming under the landlord.

The principle that a landlord must not act in a way that substantially frustrates the purpose for which the premises were let, even if no specific covenant prohibits the conduct.

A landlord's right to terminate a lease and re-enter the premises following a tenant's breach of covenant, usually subject to notice requirements and relief from forfeiture.

Failure by a landlord or tenant to perform a promise in the lease, giving the innocent party remedies such as damages, specific performance, set-off or, in limited cases, forfeiture.

Any right, interest or restriction burdening a property, such as a mortgage, easement, covenant or charge, which reduces the owner's freedom and may affect value or marketability.

A right enjoyed by one parcel of land over another, such as a right of way or drainage, which binds successive owners and must be considered when managing or altering either property.

A wall shared between adjoining owners or separating units, carrying mutual rights and obligations for support and maintenance, often governed by statutory notice procedures before works begin.

The period after practical completion during which a contractor must rectify defects notified by the employer at no extra cost, commonly secured by retention or a performance bond.

The process of inspecting completed works and listing minor defects or incomplete items that the contractor must correct before final handover and release of retention.

A percentage of contract sums withheld from a contractor until completion and the end of the defects period, providing security for rectification of incomplete or defective work.

A guarantee, usually from a bank or insurer, payable to the employer if the contractor fails to perform its obligations, providing financial protection beyond any retention held.

A fault affecting the load-bearing elements or stability of a building, such as foundation movement or beam failure, which typically demands urgent investigation and may create safety obligations.

A structured investigation to identify the underlying reason a defect or failure occurred, rather than only its symptoms, so that corrective action prevents recurrence.

Scheduled, forward-looking maintenance of plant, systems and fabric according to manufacturer recommendations and condition, intended to prevent breakdowns and extend asset life.

Repairs carried out in response to reported faults or breakdowns, typically prioritised by urgency and safety impact rather than by a pre-agreed schedule.

A documented commitment defining the scope, quality and response times of a service, such as cleaning or lift maintenance, against which contractor performance is measured and reviewed.

A measurable target used to judge whether a service or contract is performing as intended, for example response time to emergency repairs or percentage of planned tasks completed.

The process of selecting and awarding contracts for goods or services, covering specification, tender or quotation, evaluation, due diligence, award and subsequent contract management.

A dealing between the managed property and a business connected to the manager, owner or their associates, which must be disclosed and handled at arm's length to avoid improper advantage.

A sum collected from occupiers to cover the cost of services, repairs, maintenance and management of common parts, recoverable only to the extent the lease permits.

Money collected in advance and set aside for future major repairs or replacement of capital items, so that large costs are spread fairly across the years benefiting from the asset.

A long-term assessment of the condition, remaining life and replacement cost of major building components, used to set realistic future contributions to a sinking fund.

The method of dividing shared costs among occupiers, typically by floor area or another formula stated in the lease, and a frequent source of dispute if applied inconsistently.

The difference between budgeted and actual income or expenditure, analysed by cause so that managers can explain overruns and adjust future budgets or service charge demands.

Recording income and expenses when they are earned or incurred rather than when cash moves, giving a truer picture of the property's financial position and obligations.

A contractual mechanism allowing rent to be reset at stated intervals, often upward only or to market level, following a defined procedure and timetable in the lease.

A tenant's statutory or contractual right to remain in occupation after the lease term ends and to renew, subject to specified grounds on which the landlord may oppose renewal.

The proportion of lettable space that is unoccupied or not generating rent, a key indicator of portfolio performance and a driver of leasing and retention strategy.

The combination of occupiers by use, size and covenant strength within a property, which affects footfall, rental stability and the overall risk profile of the investment.

Money paid by a tenant as security against default, which must be held and accounted for properly and, depending on jurisdiction, may need protection in an approved scheme.

A joint inspection at the start or end of a tenancy recording the condition of the premises and contents, forming the baseline evidence for deposit deductions or dilapidations claims.

A tenant's failure to keep premises in the repair and condition required by the lease, giving the landlord a claim for the cost of remedial works, usually assessed at lease end.

A systematic evaluation of hazards, who may be harmed and how, and the adequacy of existing controls, used to prioritise action and record the basis for safety decisions.

The ranked approach to reducing risk, starting with eliminating the hazard, then substituting or engineering controls, and relying on administrative measures and protective equipment last.

A formal written authorisation controlling high-risk activities such as hot works or confined-space entry, specifying precautions, isolations, supervision and sign-off before and after the task.

A document describing how a task will be carried out safely, including sequence, plant, personnel, control measures and emergency arrangements, often required alongside a risk assessment.

A record of known or presumed asbestos-containing materials in a building, with location, condition and risk rating, used to manage exposure during maintenance and refurbishment works.

A consolidated schedule tracking legal obligations and their due dates, such as fire system tests, lift inspections and electrical checks, with evidence of completion retained for inspection.

Documented arrangements for maintaining or restoring critical property services during disruption, identifying key functions, dependencies, alternative arrangements and communication responsibilities.

A published, accessible process for receiving, investigating and responding to complaints within stated timescales, with escalation and records that support service improvement and accountability.