2/1/2014 1 TOP TEN REASONS FOR FAILING A MANAGEMENT AND OCCUPANCY REVIEW Presented by Robert Kriensky GH CAPITAL, LLC
2/1/2014 2 Number 10 Reason Failure to have organized office and maintenance shop. Prepare the property, curb appeal is a must
2/1/2014 3 Number 9 Failure to complete preventative maintenance, past due work orders, incomplete work orders and/or deferred maintenance. Did not correct HQ&S findings from last REAC.
2/1/2014 4 Number 8 Errors that were noted in prior MORs were not addressed
2/1/2014 5 Number 7 Same errors in every file. Documents not dated, not signed. Missing paperwork.
2/1/2014 6 Number 6 Failure to complete the management questionnaire prior to the MOR, so you are prepared for every question that will be asked.
2/1/2014 7 Number 5 Forms and documents not updated. Tenant selection criteria, lease, AFHMP etc. are not current version or HUD approved.
2/1/2014 8 Number 4 Failure to have all the documents available for the review
2/1/2014 9 Number 3 Failure to have correct move in files. 50% of the files reviewed will be new residents. The leasing and occupancy section of the review is the most heavily weighted for the score.
2/1/2014 10 Number 2 Acquire property or assume management of a property that has serious and repetitive problems in every file.
2/1/2014 11 Number 1 Income, asset and expense calculation errors. If you have no financial errors you will probably pass.
Number 10 Failure to hire the right team for the property.
Number 9 Failure to prepare the exterior. Most of the exterior items can cost big points. The outside 20 points can make or break a property. A property that scores low on a REAC usually looses big points for outside condition of the property.
Number 8 Failure to make sure every apartment on the property has power. No power can lead to many level 3 findings
Number 7 Failure to prepare common areas such as office, shop, utility rooms or closets, common areas and grounds.
Number 6 Failure to make sure to eliminate health and safety items
Number 5 Failure to eliminate all level 3 GFI, electric problems, inoperable stoves, bathroom doors not locking, windows not working properly, roach problems, leaks, egress and smoke detectors etc.
Number 4 Failure to pre-inspect days prior to a REAC using an inspection report that is continuously updated after each REAC
Number 3 Failure to complete quarterly inspections. It is hard to prepare a property that has been neglected day after day, month after month and some time year after year....
Number 2 Failure to review previous REACs for the subject property and recent inspections from similar properties. You can see new issues or hot button which may change from year to year or inspector to inspector
Number 1 Do not buy or take over management of a property without sufficient time and resources to ensure you can pass by the scheduled REAC date.