Annual Budget Time is Coming

Written by Posted On Monday, 14 November 2005 16:00

Patrice is a property manager who is responsible for a portfolio of 400 apartment units at 9 locations. Every year as she gets ready to draft the budgets for her clients, she completes an exterior and interior inspection report for each property.

Because she hates heights, she annually hires a roofer to inspect the roofs. The roof is the most important part of the buildings and needs the most attention. She expects the roofer to use a check list, such as the following, in his review:

For Flat Roofs:

  • Drains
  • Flashings
  • Seams
  • Standing water
  • Delaminated plywood
  • Blocked downspouts
  • Moss
  • Water or air bubbles in the roofing
  • Failed flashing around the air vents
  • Does water drain to the actual drains?
  • Are there enough drains?

For Peaked Roofs:

  • Curled tabs?
  • Gravel washed off?
  • Cracks in the valleys?
  • Failed flashing around the air vents and chimneys
  • Clogged or rusting gutters and downspouts
  • Are there enough drains/downspouts?

For Tile Roofs:

  • Are tiles cracked?
  • Have tiles slipped out of place or not properly aligned?
  • What kind of roofing material is being used?
  • What is the remaining useful life?
  • Is it easy to reach the roof?
  • Are there HVAC units on the roof?
  • If so, are condensate lines being properly drained?
  • Have tenants pointed out roof leaks. (where are the leaks?)
  • Date of last roof inspection
  • Date of last roof sweeping and drain clearing

Then Patrice focuses on the siding and other exterior building elements.

The first thing she does is identify the kind of siding at her properties: metal, brick, cedar, other wood substance (T111), hardiplank, EIFS or other.

She decides if the siding is in good condition. Every few years before the building is painted, it is prepped by pressure washing. Usually that person finds siding and caulking failures.

  • Is there dry-rot?
  • Are the gutters and downspouts working properly?
  • Do the downspouts drain?
  • Is there graffiti on the siding?
  • Does the siding need a paint job? This year? Next Year? How soon?
  • Does the trim need to be painted? This year? Next Year? How soon
  • Do the stairways need to be painted? This year? Next Year? How soon
  • Do the handrails need to be painted? This year? Next Year? How soon
  • Do any of the decks have dry-rot?
  • Are there any broken windows?
  • Do the windows need to be recaulked?
  • Does the siding need caulking at critical seams?
  • No earth/siding contact 6" clearances from the ground around the building(s)
  • All posts and steps are protected from earth.

  • All sidewalks are safe without any trip hazards.
  • All sump pumps are in operating condition.
  • Any evidence of pests (mice, carpenter ants, termites, rats?
  • If there are Elevators, have been serviced recently and are on a regular service contract?
  • Garbage dumpster/recycling areas are clean and easy to use
  • Garbage compactor is easy to use and easy to access. Area is cleaned up.
  • What is the condition of garage doors and garages?

She then proceeds to inspect the asphalt parking lots and concrete at the property.

  • What is the condition of the asphalt? (cracks, potholes?)
  • Needs overlay?
  • Needs striping?
  • Needs seal coat?
  • Has a sinkhole -- why?
  • Do storm drains drain? Have they been cleaned out?
  • Has the lot been swept recently?
  • Is it swept or blown on a regular basis?
  • By landscaper? Other?
  • What is the condition of concrete driveways or walkways?
  • How is the drainage in the landscaping and/or the parking lot?
  • Are there any visible problems?

Patrice then walks the property one more time to inspect the landscaping:

  • Are the grounds weeded?
  • Entry ways are not overgrown
  • Are trees and bushes too old, too mature should they be removed out and replaced with younger plants?
  • Are the trees and bushes covering up the buildings and or windows?
  • Are the trees covering the roofs, do branches need to be trimmed back (to keep branches, leaves and pests ( carpenter ants etc.) from ending up on the roof)?
  • Over irrigation/ under irrigation -- are there areas where there is over irrigation, areas that are swampy and need less water, or are there areas where the lawn is brown or plants are dying due to lack of water?
  • Sprinkler systems -- meet landscaper on site to make sure that the sprinklers are not soaking the building (wood) or other wise, and that all sprinklers are working (i.e. heads are not broken off) and all grass and bush areas are being irrigated.
  • Grounds are clean and picked up
  • Are pet feces cleaned up or stinking up the grounds?
  • Is the property in wetlands or on a stream corridor? What are the implications for the property?

Finally she gets to the rest of the building:

Fire extinguishers

  • Located in walkways and hallways and laundry rooms -- inspected and serviced within last 12 months?

Fire sprinkler systems

  • When were they last serviced? Is it a dry or wet system?
  • Who is the vendor?

Exterior lighting

  • Does it work?
  • Is there enough light?
  • Is there a crime problem? (i.e. broken-in cars)

HVAC

  • Have all air conditioners and furnaces been serviced?
  • Are they on a regular service contract?

Do the intercom systems work for all of the tenants?

Are there any problems with the automatic garage doors?

Are there any problems with the automatic gate systems?

Patrice usually leaves the interior inspections to her on site manager, but she does spot check some of the units. She looks for:

  • Age of appliances
  • Condition of carpets
  • Dry rot
  • How tenants are keeping house and if there is destruction like holes in the wall
  • Is there excessive smoking that will take a full paint job including the ceiling?
  • Are the unauthorized pets?

Once Patrice is done with this survey of the building, she reviews input from her on site manager as well as tenants surveys too see if there are any issues that she might have missed.

Now she is fully exhausted, but she is ready to prepare her annual budget!

Author's note: I will admit that this may seem like overkill, but properties wear out and all owners of property need to consider thorough inspections -- perhaps over a two year cycle.

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