RICS professional standards and guidance, global Real ... Real estate management Efiective from 1 November

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  • rics.org/guidance

    RICS professional statement

    RICS professional standards and guidance, global

    Real estate management 3rd edition, October 2016

  • rics.orgrics.org

    Published by the Royal Institution of Chartered Surveyors (RICS) Parliament Square London SW1P 3AD www.rics.org

    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.

    First edition published March 2013; second edition published November 2014.

    ISBN 978 1 78321 172 2

    © Royal Institution of Chartered Surveyors (RICS) October 2016. Copyright in all or part of this publication rests with RICS. No part of this work may be reproduced or used in any form or by any means including graphic, electronic, or mechanical, including photocopying, recording, taping or Web distribution, without the written permission of the Royal Institution of Chartered Surveyors or in line with the rules of an existing licence.

    Every effort has been made to contact the copyright holders of the material contained herein. Any copyright queries, please get in touch via the contact details above.

    Real estate management RICS professional statement, global

    3rd edition, October 2016

  • iii RICS professional statement, global Effective from 1 November 2016

    Real estate management

    Contents

    RICS professional standards and guidance .......................................... 1 Glossary of terms ...................................................................................... 3 Introduction ............................................................................................... 4 1 Ethics ............................................................................................... 6 1.1 Introduction to ethics and professionalism ............................ 6 1.2 Your general duty of care as a real estate manager ................ 6 1.3 Corporate social responsibility................................................ 6 1.4 Dealing with conflicts of interest ............................................. 7 1.5 Understanding discrimination ................................................. 7 1.6 Vulnerable customers ............................................................. 7 1.7 Responsibility for others ......................................................... 7 2 Securing instructions...................................................................... 8 2.1 Introduction ............................................................................ 8 2.2 Types of client ........................................................................ 8 2.3 Before taking instructions ....................................................... 8 2.4 Sharing information with your potential client.......................... 8 2.5 Commissioning other documentation or other parties ............ 9 2.6 Offering services to other parties............................................ 9 2.7 Instructing a sub-agent........................................................... 9 3 New lettings and lease renewals ................................................. 10 3.1 New lettings ......................................................................10 3.2 Lease renewals..................................................................... 12 4 Managing real estate .................................................................... 13 4.1 General principles ................................................................. 13 4.2 Rent...................................................................................... 13 4.3 Inventory ............................................................................... 14 4.4 Repairs ................................................................................. 14 4.5 Access ................................................................................. 15 4.6 Insurance.............................................................................. 15 4.7 Service charges ................................................................... 16 4.8 Alterations and improvements .............................................. 18 4.9 Assignment and underletting ................................................ 18 4.10 Breach of covenant, enforcement and forfeiture proceedings .. 18 4.11 Lease restructuring or changes to lease terms ..................... 18 4.12 Sustainability ........................................................................ 18 4.13 Information management...................................................... 19 4.14 Disputes ............................................................................... 19 4.15 Termination of a lease ........................................................... 19 5 Portfolio and asset management ................................................ 20 5.1 Asset management .............................................................. 20 5.2 Portfolio management .......................................................... 20 6 Ending the instruction .................................................................. 23 6.1 Written confirmation ............................................................. 23 6.2 Invoice .................................................................................. 23 6.3 Handover of documentation ................................................. 23

    6.4 Accounting for client’s monies and service charge funds upon termination ........................................................................... 23

    7 Safety and security ....................................................................... 25

  • rics.org

    ivRICS professional statement, globalEffective from 1 November 2016

    7.1 Confidentiality ....................................................................... 25 7.2 Data protection ..................................................................... 25 7.3 Health and safety ................................................................. 25 7.4 Personal safety ..................................................................... 25 8 Business management ................................................................. 26 8.1 Advertising and marketing your services .............................. 26 8.2 Handling complaints ............................................................. 26 8.3 Handling clients’ money ....................................................... 26 8.4 Recovering outstanding debts .............................................. 27 8.5 Insurance.............................................................................. 27 8.6 Training and keeping up to date ........................................... 27 Acknowledgements ....................................................................................... ii

    Real estate management

  • 1 RICS professional statement, global

    Real estate management

    Effective from 1 November 2016

    International standards RICS is at the forefront of developing international standards. In addition to RICS Valuation – Professional Standards, other international standards are being developed. Working in coalitions with organisations around the world, acting in the public interest to raise standards and increase transparency within markets, International Property Measurement Standards (IPMS – ipmsc.org), International Construction Measurement Standards (ICMS), International Land Measurement Standards (ILMS), International Ethics Standards (IES) and others will be published and will be mandatory for RICS members. Most RICS professional statements link directly to these standards and underpin them. Where that is the case, RICS members are advised to make themselves aware of the relevant international standard/s (see www. rics.org) and the overarching principles with which the associated professional statement complies. Members of RICS are uniquely placed in the market by being trained, qualified and regulated by working to international standards and complying with professional statements.

    RICS professional statements This is a professional statement, which RICS members must act in accordance with.

    Sections within professional statements that set specific mandatory requirements for members use the word ‘must’ and appear in purple boxes. Members must not depart from specific mandatory requirements.

    Sections within professional statements that set an expectation or recommend best practice advice use the word ‘should’. Where members depart from these, they should do so only for justifiable good reason. Where, in

    the professional judgment of the member, the departure may have a material impact on the surveyor’s advice, the client must be informed in writing of the departure and the reason/s for the departure.

    Any content that does not use the word ‘must’ or ‘should’ is information.

    RICS considers that professional statements are technical standards for the purposes of Rule 4 of both the Rules of Conduct for Members 2007 and the Rules of Conduct for Firms 2007 (as amended from time to time).

    Members should note there may be legal and/or disciplinary consequences for departing from professional statements. When an allegation of professional negligence is made against a surveyor, the court is likely to take account of relevant RICS professional statements in deciding whether or not the surveyor acted with reasonable competence. Failure to act in accordance with professional statements may, accordingly, lead to a finding of negligence against a su