Florida, Georgia, South Carolina, North Carolina, Tennessee, Alabama
Replacement Reserve Study Report Physical Analysis
An overview of the physical analysis to determine capital needs includes:
Close examination and inspection of the property components to reveal defects and shortcomings to be addressed as either an operating or capital expense immediately, in the near future, or in the long term.
The process we utilize meets this objective through a number of functions:
1. Determine the inventory to be included. In condominium sites the Articles of Trust or Declaration specifically define the lines of ownership of divided and undivided interests. In cooperative and rental properties, typically everything that is built to the land is included.
2. Count or measure the component inventory. We do not trust most building plans unless they are certified "as-built" with the stamp of a state-registered engineer or architect. Even then, random sampling should be made of road measurements, building footprints, etc. It is important that the basis of funding, the inventory, represents accurate information. The client will likely use this information in the future when dealing with prospective contractors.
3. The examination of the components. To be invasive or non-invasive should be determined. Invasive investigation will require correction after the inspection, and should be pre-arranged. In either instance, sufficient inventory should be examined until prevailing conditions are identified. A proficient inspection will create the following information:
4. Interview management or principals. Information to form the history of operations is vital. A maintenance request and delivery system may be available for review. Several years of historical operating budgets may disclose disproportionate spending, and should be reviewed. A review of expenses categorized as "capital" should be reviewed. During the interview, client priorities of value/service levels should be understood.
To provide an outline of inventory components, we have included below the required items from HUD's Comprehensive Needs Analysis.
Asbestos, CFC’s, Lead based paint, Underground storage tank, Walls, foundations, Roofs, flashing, vents, Gutters, downspouts, Walks, steps, rails, Fences, walls, gates, Porches, balconies, Fire escapes, Doors, windows, screens, Garages, carports, Storage, utility buildings, Swimming pools, Benches, play areas, Project signs, Parking lots, paving, curbs, Lawns, plantings, Drainage, sprinkler system, Exterior lighting, Exterior painting, Underground utilities, Security system, Insulation, Caulking, weather stripping, Flooring, Stairs, halls, Doors, cabinets, closets, Curtains, shades, Major kitchen appliances, Electric fixtures & systems, Plumbing fixtures & systems, Heating & air conditioning, Hot water & boiler systems, Laundry rooms, Interior lighting, Interior painting, Elevators, Fire safety/detection/prevention, Commercial kitchens, Congregate dining rooms, Day care centers, Recreation rooms, Community spaces, Section 3 Compliance, Section 504 in addition to above, Supportive Services, Drug prevention, Crime Prevention, Personnel Needs, Modernization Needs
Condominium and homeowner associations should refer to controlling documents to determine common/limited common elements. Further, these forms of ownership should consult with their CPA professional versed in CIRA and IRS guidelines. As an example, an "average" association may have components shown in the following.
Site Improvements: grounds retainage, surface water systems, asphalt: roads, walks, parking, concrete surface systems, retaining walls, fence inventory, site lighting, swimming pool, tennis court, other amenities, clubhouse, mail systems
Building Envelope: siding envelope, roofing systems, ventilation, common door and glass, limited common decks, building mounted lighting, gutters and down spouts, foundations, chimneys
Interior Common Areas: carpet, tile, decorative doors, utility doors, common rooms, common furnishings, wall covering, interior lighting
Mechanical Systems: HVAC systems, domestic hot water, fire detection, fire supression, elevators, security systems, intercom, laundry systems, major pumps and motors
A Few Inspection Techniques Used by Our Professional Team
Proficient inspection does not come naturally. Practice and a certain amount of repetition will certainly increase skills; remember that we have completed more than 6,500 reserve study inspections!
Photographic documentation is important. At all inspections, our Professional Team takes comprehensive digital photographs of observed conditions. The inspection process itself should be completed within a brief period of time as conditions could change during the term.
Utilizing the senses. While sight is the obvious sense to utilize, knowing what to look at may not be; we are always inquisitive. We touch and feel components for moisture or brittle conditions, loose hardware, and so forth. An example would be to use an awl to find wood rot. We listen for components moving in the wind and listen to motor noises and vibrations. Hearing the problem may often compensate for not being able to see the problem. Detecting odors can indicate problems in numerous systems, especially electrical, plumbing, elevators, and others. Very rarely will a building component give off an odor without some underlying problematic condition.
Observe the climate and environment. The greatest wear and tear of site and envelope improvements is climate/environment conditions. We examine surface water runoff impacting the improvements. This includes surface to surface water runoff of roof elevations, ground splash-back, and so forth. Our Team considers sun travel in identifying various degrees of UV damage. This will allow for later more efficient phasing in of film coat efforts. Prevailing wind patterns also have significant impact on components; our Professionals have learned to identify these effects.
We would be glad to supply you with a comprehensive range of references, information, and pricing specifically detailed for your property .
If you are looking for a professional property management company, please contact us for your FREE, customized proposal.
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