SITE INSPECTIONS OF STABILIZED PROPERTIES · •Primary services include Property Site Inspections, Resident File Review, and Compliance Management •Flatrockhas completed several

SITE INSPECTIONS OF STABILIZED PROPERTIES

JONATHAN CAMPBELL, PRESIDENT

FLATROCK PARTNERS

BOULDER, CO

Intro to Flatrock

• Founded in 2006 in Boulder, Colorado

• Provides third-party services to Investors, Syndicators, Developers, and Management Companies

• Primary services include Property Site Inspections, Resident File Review, and Compliance Management

• Flatrock has completed several thousand Property Site Inspections in 40 states, Washington, D.C., Puerto Rico, and the U.S. Virgin Islands

Outline• Property Site Inspection

• “Partners”

• Process Phases• Pre-Inspection• On-site Inspection• Post-Inspection

• On-site Inspection• Primary Components Defined• Areas of Focus and Key Metrics• Best Practices• Issues and Challenges• “Then and Now”

Inspection Phases

Pre-Inspection

On-site Inspection

Post-Inspection

Pre-Inspection

• BEFORE arriving on-site• Discuss property with Asset Manager• Review prior Asset Management

inspection reports• Review documentation• Review resident files

• Discuss property with Client/Asset Management Team

• Schedule inspection

• Engage with Management Agent• Introduce Flatrock and Client• Provide inspection overview• Request documentation• Request selection of resident files

Best Practices

Challenges• Scheduling conflicts

• Timely receipt of docs and resident files

• Explanation of Partners to on-site staff

Inspection Phases

Pre-Inspection

On-site Inspection

Post-Inspection

On-site Inspection – Overview

Examination of Building Exterior(s), Grounds, Common Areas, Building Systems, Units

Review a selection of Resident Files

Discuss property details including physical items, staffing, vacancy, turnover, delinquency, etc.

PHYSICAL

FILE REVIEW

MGMTQUESTIONS

On-site Inspection – Physical

• Request presence of Maintenance Person

• IDENTIFY CRITICAL AND WIDESPREAD ISSUES

• Inspect all vacant and off-line units

• Inspect items recently completed or scheduled

• Photos, photos, photos

Best Practices

&Areas of

Focus

Challenges• Importance of limiting non-compliance, 8823s

• Limited historical knowledge by on-site staff, due to high turnover

• Variety of ages and property types

PHYSICAL

FILE REVIEW

MGMTQUESTIONS

On-site Inspection – File Review

• Review resident files BEFORE arrival• Spot check random sample on-site

• File Review• Select most recent move-ins• Focus on key documentation• IDENTIFY CRITICAL AND/OR

WIDESPREAD NON-COMPLIANCE

• Discuss findings with compliance supervisor

Best Practices

&Areas of

Focus

Challenges• Importance of avoiding non-compliance, 8823s

• On-site staff compliance training and turnover

• Availability of compliance supervisor and/or specialist on-site

PHYSICAL

FILE REVIEW

MGMTQUESTIONS

On-site Inspection – Management Questions

• Focus• Items noted by Asset Manager• Outstanding 8823s – File and/or Physical• Items recently completed or scheduled

• Request presence of Regional Manager

Best Practices

&Areas of

Focus

Challenges • Limited knowledge of on-site staff, due to high turnover

PHYSICAL

FILE REVIEW

MGMTQUESTIONS

On-site Inspection – Then & Now

PHYSICAL

FILE REVIEW

MGMTQUESTIONS

PHYSICAL

FILE REVIEW

MGMTQUESTIONS

New technology and other shifts allow for more

time dedicated to Physical

Inspection Phases

Pre-Inspection

On-site Inspection

Post-Inspection

Post-Inspection

• Quick turnaround• Results to Client• Follow-up communication with GP and/or

Management Agent

• For critical items, follow-up immediately• Complete and submit “Report”• Static vs Dynamic

• Communicate results to Client

Best Practices

Challenges • Identifying vs Correcting Deficiencies• Investor/Syndicator vs GP/Management Agent

Contact InfoFlatrock PartnersBoulder, Coloradowww.flatrockpartners.com

Jonathan [email protected]