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Unit FM4.16: Understanding property and asset management for facilities managers

Unit FM4.16: Understanding property and asset management for facilities managers

1. Understand the requirements of property leases

1.1 Describe different types of leases and other contractual arrangements between landlords and tenants.(including general leases, finance leases, true leases, operating leases, skip leases, deferred leases, pre-paid purchase leases and sub leases)

1.2 Explain the ways in which leases are created and administered (no additional guidance)

1.3 Identify the key legislation affecting the ownership and use of property and assets (including specific legislation (such as property, covenants, planning consent, CDM, sustainability & carbon legislation as they apply to landlord/tenant agreements, tax legislation, business rates) and more general legislation that has an impact (such as the Disability Discrimination Act, Sex Discrimination Act, Race Relations Act)

1.4 Explain the obligations of landlord and tenant to each other (supporting the explanation with examples of the landlord’s obligations (e.g. repairs to the structure, exterior & interior of the property, safety of gas and electrical appliances, fire safety of furniture and furnishings) and of the tenant’s obligations (e.g. paying rent, utility bills and council tax, and taking care of the property) rather than trying to provide an exhaustive list)

2. Understand property costs and charges

2.1 Explain the costs associated with occupying or owning property. (providing an overview of both capital and revenue costs)

2.2 Explain how the property costs, taxes and associated charges can be managed. (including the different financial reporting and tax implications of ownership and leasing)

3. Understand how to set up and manage registers for property and fixed assets

3.1 Explain the principles, rationale and costs involved in setting up and maintaining a property and fixed asset register. (including financial, maintenance and legislative compliance)

3.2 Describe the technology that can be used to assist in setting up and managing such a register (including the range of available technologies, from the spreadsheet to the CAFM package)

3.3 Describe the information which can be obtained from a property and fixed asset register and explain how this can be used to advantage by management (illustrating the description with example/s from the learner’s own experience and/or case studies, rather than trying to develop an exhaustive list)

4. Understand the factors involved in property relocation

4.1 Explain the different factors involved in property relocation to fulfil business requirements (supporting the explanation with example/s from the learner’s own experience and/or case studies (e.g. handover procedures, space planning, change of use, cost reduction, consolidation, novation of contracts, TUPE, sustainability, corporate & social responsibility, employee relocation, redundancy, morale, motivation), rather than trying to develop an exhaustive list)


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