04/10/231

TOP TEN REASONS FOR FAILINGA MANAGEMENT AND OCCUPANCY REVIEW

Presented byRobert Kriensky

GH CAPITAL, LLC

04/10/232

Number 10 Reason

Failure to have organized office and maintenance shop. Prepare the property, curb appeal is a must

04/10/233

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.

04/10/234

Number 8

Errors that were noted in prior

MOR’s were not addressed

04/10/235

Number 7

Same errors in every file. Documents not dated, not signed. Missing paperwork.

04/10/236

Number 6

Failure to complete the management questionnaire prior to the MOR, so you are prepared for every question that will be asked.

04/10/237

Number 5

Forms and documents not updated. Tenant selection criteria, lease, AFHMP etc. are not current version or HUD approved.

04/10/238

Number 4

Failure to have all the documents available for the review

04/10/239

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.

04/10/2310

Number 2

Acquire property or assume management of a property that has serious and repetitive problems in every file.

04/10/2311

Number 1

Income, asset and expense calculation errors. If you have no financial errors you will probably pass.

04/10/2312

TOP TEN REASONS FOR FAILING A REAC

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

REAC’s 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.