General Instructins Cmmercial Prperty Inspectins Ruth Jhnsn - Training 17
Cntents General Instructins Cvius Cmmercial Prperty Inspectins... 3 Intrductin:... 3 Inspectin Scheduling Prtcl:... 3 Overview f the Inspectin Prcess:... 3 What Dcuments are Required:... 4 Cmpleting Prperty Inspectin Frm:... 4 Prir Deferred Maintenance/Repairs t Verify:... 5 Deferred Maintenance and Health and Safety Issues:... 5 Hazard r Catastrphic Lss... 5 Submitting Inspectins:... 5 General Pht Requirements:... 6 Recmmended Phts fr Inspectin Reprts:... 6 Definitins f Multifamily Prperty Types:... 7 Frm Specific Instructins:... 8 Client Specific Instructins:... 8 Tips fr Perfrming Better Inspectins:... 8 Intrductin:... 8 Tips:... 8 Pht Tips:... 10 Final Tips fr Inspectins:... 10 2 P a g e
General Instructins Cvius Cmmercial Prperty Inspectins Intrductin: The purpse f these instructins is t infrm yu (the inspectr) f all the general requirements fr every prperty inspectin yu agree t perfrm fr Specialty Inspectins Spectrum Field Services. These General Instructins apply t ALL Cmmercial inspectins and yu are required t abide by these instructins. In additin t these General Instructins there will be Frm Specific Instructins fr the main inspectin frm types required by ur clients. The Frm Specific Instructins will include all f the instructins that are cmmn t each inspectin frm type. There will be Client Specific Instructins attached t each inspectin in CSI. The Client Specific Instructins prvide any additinal r unusual instructins that apply t each individual inspectin as requested by the Client. Yu shuld keep these General Instructins, the Frm Specific Instructins, and the Client Specific Instructins with yu during every site inspectin yu perfrm. It wuld be wise t print ut the instructins. Failure t fllw the instructins and prvide the required items may result in a repeat trip t the subject prperty at yur wn expense. Inspectin Scheduling Prtcl: Call cntact t schedule appintment (Unless this is a N Cntact inspectin). Infrm the cntact f the requirements fr the inspectin (Unless this is a N Cntact inspectin). Request that the n-site cntact has a minimum f 6 mnths tenure with the Subject Prperty. Request that cntact ntify all tenants f the inspectin date (Unless this is a N Cntact inspectin). Inquire as t hw many vacant and dwn units there are (Unless this is a N Cntact inspectin). Cnfirm appintment with Prperty Cntact just prir t the inspectin (Unless this is a N Cntact inspectin). Ntify Cvius f appintment date and time: Within 48 hurs f accepting the rder fr regular inspectins. Within 24 hurs f accepting the rder fr Rush inspectins. Overview f the Inspectin Prcess: The inspectin actually begins when yu arrive in the city r twn where the Subject Prperty is lcated. Yu shuld nte yur bservatins cncerning the state f the market, cmmercial/retail/recreatinal facilities, and prperties cnsidered cmparable t the Subject Prperty. Arrive with sufficient time t drive the neighbrhd and the Subject Prperty and nte: Traffic patterns Accessibility f the Subject Prperty Cnditin, accessibility, traffic flw, etc. f ther prperties Cnditin and effectiveness f signage at Subject Prperty Any new cnstructin in area Are the surrunding hmes/prperties well maintained? Des the Subject Prperty fit the neighbrhd? Walk partial Subject Prperty exterir (general first impressins f the Subject Prperty). Meet with n-site Prperty Cntact and: Nte the name and number f persn that accmpanied yu if applicable (in a cmment bx). Verify infrmatin previusly received r cllect any additinal infrmatin needed t cmplete the inspectin prcess. Cmplete the Management Interview questins if applicable t the scpe f the inspectin. 3 P a g e
Review the inspectin prcess with the n-site Prperty Cntact. Discuss units t be inspected. Yu shuld determine the units t be inspected. Inquire regarding any special cnditins identified by the Client r nticed prir t r while meeting with the Prperty Cntact (e.g., cmparable develpment, deferred maintenance/cnstructin issues). If the Prperty Cntact is unable r unwilling t prvide any required infrmatin yu must explain this in the inspectin reprt alng with the name and number f this individual. If the Prperty Cntact is unable r unwilling t allw inspectin f any area f the subject prperty yu must explain this in the reprt alng with the name and number f this individual. Tur Subject Prperty with Prperty Cntact (r individually, if applicable). Inspect required number f units yu have chsen (see Client Specific Instructins fr particulars specific t each inspectin yu are asked t perfrm). All DOWN units must be inspected, detailed cmments must be prvided t explain why the unit(s) is/are dwn, and prperly captined phts must be prvided. All NON-Rentable guest rms in a hspitality prperty must be inspected, explained, and phtgraphed. When inspecting Hspitality prperties NEVER inspect ccupied guest rms. When inspecting Self-Strage facilities NEVER inspect ccupied strage units. Inquire regarding any reslutin timing and any csts assciated with issues discvered during walk thrugh (if accmpanied). Obtain an understanding f the Brrwer s cmmitment t Subject Prperty (e.g., n-site cntact, maintenance staff, r tenants cncerns regarding needed imprvements). Obtain an understanding f n-site cntact s and if pssible prperty management s knwledge and management f the Subject Prperty. Give the n-site cntact a verbal summary f the inspectin, if apprpriate and within the scpe f yur agreement with the Client. The n-site Cntact shuld nt be surprised by yur reprt. Dcument everything in writing and with crrespnding phts. After cmpleting the tur with the Prperty Cntact (if applicable): Address any issues nt previusly addressed. Exchange business cards. Understand and cnfirm any fllw-up prcedure fr questins r gaps yu may have in infrmatin fr the final reprt. Address any Client questins by adding cmments t the frm where apprpriate. Cmplete the prperty inspectin reprt, including any fllw up with the Prperty Cntact. Tp f the Dcument What Dcuments are Required: When dcuments, such as the rent rll, are required they shuld be upladed with the inspectin reprt in CSI (preferred) r faxed t Spectrum when the reprt is submitted r befre. Please send the dcuments t the fax number prvided belw. ALWAYS include the CSI Order # at the tp f any dcuments yu fax t us s the dcuments can be included with the crrect inspectin reprts. Spectrum Field Service Fax # 801-461-8222 Cmpleting Prperty Inspectin Frm: Thrughly cmplete all sectins f the frm including detailed cmments. Sme infrmatin may already be entered in the nline frm when yu receive the rder. This infrmatin is frm a previus inspectin. Please verify the infrmatin. If yu find that the infrmatin is different, please change it, and explain in the Deferred Maintenance cmments r in the Additinal Cllateral Descriptin cmments. When answering Market r Neighbrhd questins: The area in questin cnsists f a ne-three mile radius arund the subject prperty. 4 P a g e
Cmpetitin, hwever, can be fund within a 100-mile radius. Cmpetitin can be fund n the internet (www.yellwpages.cm, www.superpages.cm), frm the cntact, r visually while in the area. Cmpetitin is fr the prperty type, nt the business itself. (Retail center, mall, ffice building, warehuse, restaurant, etc.) Prir Deferred Maintenance/Repairs t Verify: Clients ften prvide us with lists f prir deferred maintenance r repairs that need t be verified. These lists will be fund in Special Instructins in CSI. When prvided, yu must prvide phts f the current status r cnditin f each item n the list, whether repaired r nt. Deferred Maintenance and Health and Safety Issues: All items f deferred maintenance must be identified and cmmented n. Yu must prvide the exact lcatin f each item f deferred maintenance in the cmments and pht captins. Yu must accurately describe each item f deferred maintenance. All health and safety issues must als be described, phtgraphed, and the lcatin n the prperty specified in the reprt. Any items that pse an immediate threat t life safety must be prperly nted in the reprt, phtgraphed, the lcatin specified, and yu must immediately infrm Spectrum f the prblem s the client can be cntacted within 24 hurs. Hazard r Catastrphic Lss In the event f a Hazard Lss such as a Fire r ther disaster we need the fllwing infrmatin: Date f lss Cause Was insurance claim filed Claim amunt Any displaced tenants Number f affected units Details n the nature f the lss When units will be back nline Phts f damaged units (if pssible) If the cntact des nt knw these details, please ask fr the name f the individual wh can supply this infrmatin and fllw up with that persn. Dwn units fr ther reasns we need the fllwing infrmatin: Unit numbers f dwn units Cause Cst t bring unit(s) back nline Apprximate date when unit(s) will be back nline Phts f dwn units Submitting Inspectins: Submit the inspectin: Within 72 hurs (3 days) f n-site inspectin r by the due date whichever cmes first unless therwise instructed within Special Instructins r by a Rep Fllw-up Issue fr regular inspectins. The next day fr Rush inspectins. If yu are nt able t submit the inspectin within the alltted time yu must update CSI with a cause fr the delay. Please call Spectrum at 800-700-1701 with any questins r prblems. 5 P a g e
If the inspectin is rdered as a Rush, but is nt cmpleted by the due date, the Rush fee will nt be paid. (This culd change depending n unique circumstances.) If the inspectin must be scheduled n r after yur due date, please ntify Spectrum immediately s the client can be infrmed that the inspectin will be late. Please d nt assume that an inspectin is a RUSH based n the due date. If it is nt designated a rush, then a rush fee will nt be assessed, and we will likely extend yur due date rather than pay a rush fee. Tp f the Dcument General Pht Requirements: Use a digital camera. Size: 640 x 480 r 50K t 150K (be sure t set yur camera t this size befre taking the phts). Orientatin: All phts must be hrizntal. The crrect number f gd quality phts must be included even if yu are nt allwed t access prtins f the prperty (see Client Specific Instructins). Take phts f all required cmpnents as listed in Client Specific Instructins. Turn OFF the Date functin in yur digital camera. Otherwise yu will be asked t: Return t the prperty t take new phts OR Edit the Date ut f the phts All items f deferred maintenance must be phtgraphed captins must state lcatin n the prperty and descriptin f the prblem. (See examples belw) DM - Hle in living rm wall - Unit 16B DM - Missing rain gutter - West side f Building H All health and safety issues must be phtgraphed captins must state lcatin n the prperty and what the health and safety cncern is. All phts must be captined with a descriptin f the cmpnent(s) in the pht and must include the exact lcatin n the prperty: Exterir phts must have building number r lcatin n the prperty and N, S, E, r W directin. Unit pht captins must have unit name (Cmmercial Unit) r number (Multifamily, Hspitality, Healthcare Unit) if ccupied and unit number (all prperty types) if vacant. Captin Examples: Nrth side f Building 2 Parking Ingress/egress n the west side f the prperty Swimming pl suth f the leasing ffice Hllywd Vide Shwrm Occupied Unit 265 Kitchen Vacant Unit 3 Dining rm Vacant Unit 1b Interir (Cmmercial unit) If yu must email phts rather than attach nline: Include a list f detailed pht captins in the text f the email Enter the Order ID in the subject line f the email Submit emailed phts within 12 hurs f the submitted rder Send the phts in several emails t ensure delivery Dark and/r blurry phts are nt acceptable. View yur phts in full size frmat befre uplading them int CSI t verify they are acceptable. When yu are unable t take phts f a required cmpnent yu must explain this in the reprt. Recmmended Phts fr Inspectin Reprts: Prperty signage If pssible, shw the Subject Prperty signage in relatin t the street and/r t the Subject Prperty. 6 P a g e
Street scenes One r tw directinal phts are usually sufficient t shw the makeup f the neighbrhd and the type f street and traffic vlume. Als include phts f surrunding prperties (within a blck r tw) that wuld have a majr impact n the Subject Prperty (e.g., a reginal mall, hspital, etc.). The street scene shuld als shw any traffic lights, median cuts, r center turn lanes that wuld affect ingress/egress at the main Subject Prperty entrance. Yur pht captins shuld identify the directin which yu are facing (e.g. Street view f Elm Street lking nrth ). Entrance If pssible the main entrance pht shuld be taken in relatin t either Prperty Signage r Street Scenes r bth. Again, captins shuld identify directins (N, S, E, and W nt left r right). Overview Try t take a general verview f the Subject Prperty frm the entrance drive r frm acrss the street t shw the building, parking, and landscaping. If a Subject Prperty is quite large (reginal r cmmunity shpping center with pad sites, etc. a cmprehensive general view is nt always pssible, but generally an verview is pssible frm acrss the street r at a 45 degree angle frm an extreme crner f the parking lt. Exterir Structure These phtgraphs shuld include walls, rfs, drs, and exterir Subject Prperty amenities. Interir Interir phtgraphs shuld cntain lbbies, hallways, stairs, elevatrs, mechanical rms, ceilings, flr cverings, and resident r tenant unit interirs. Deferred Maintenance The Inspectr shuld phtgraph each deferred maintenance item identified in the reprt. The lcatin f the item must be identified in the pht captin. Fr instance, if yu encunter water damaged ceiling tiles, the specific lcatin must be identified, e.g., DM Stained ceiling tiles - Nrthwest crner f Unit B r, DM Damaged fascia - Sutheast crner f the nrth building. It is nt necessary t take phts f multiple deficiencies f the same type. If paint is peeling thrughut, r there is damaged fascia thrughut, the Inspectr shuld take a few representative phts f the deficiencies, indicate the specific lcatin f thse phts, and then indicate in the captin that this is the typical cnditin thrughut. (Sme clients require mre than ne pht when deferred maintenance is thrughut the prperty always refer t Client Specific Frm Instructins. While keeping the abve recmmendatins in mind, please refer t the Client Specific Frm Instructins fund in CSI fr the list f items t phtgraph (as prvided by the Client) fr each inspectin yu perfrm. Tp f the Dcument Definitins f Multifamily Prperty Types: There are varius types f multi-unit rental husing, including Multifamily, Manufactured Hme/Mbile Hme Cmmunities, Cperative Husing (als referred t as C-Ops) and Student Husing. Belw are the definitins f each: Multifamily Rental husing with five r mre residential units. A multifamily prperty may cnsist f a single building r multiple buildings. Subtypes include mid- t high-rise buildings and garden apartments. A building under 10 stries is generally cnsidered mid-rise while a building with 10 stries r mre is cnsidered high-rise, each type having at least ne elevatr. Mid- and high-rise buildings may stand alne r frm a single cmplex f multiple buildings sme f which may cntain cmmercial spaces. Garden style apartments may be defined as a ne- t threestry develpment, with ne r mre buildings, built in a garden r park-like setting. Senir Apartments (als termed Independent Living) r retirement cmmunities are multifamily develpments that target senir residents wh are able t functin independently. These 7 P a g e
residences are typically age-restricted t residents 55 and lder (r 62 and lder). Senir Apartments may prvide sme scial and recreatinal amenities, but d nt prvide any health care services. Manufactured Hme/Mbile Hme Cmmunities A manufactured hme is a factryassembled residence cnsisting f ne r mre mdules in which a chassis and wheels are an integral part f the structure, and which can be readied fr ccupancy withut remving the chassis and/r the wheels. Manufactured hmes cme in ne r tw mdules, with the tw mdule type ften referred t as a duble-wide. The term Mbile Hme refers t manufactured hmes built prir t June 15, 1976, when the HUD cde that nw regulates manufactured husing went int effect. The wners f these mbile r manufactured hmes lease lts in a cmmunity r develpment that prvides utility services and ther cmmn amenities. The cmmunity may wn sme f the hmes and rent ut the hme and lt tgether. Cperative Husing (r C-Ops) A type f multiple wnership in which the residents f a multi-unit husing cmplex wn shares in the cperative crpratin that wns the entire Subject Prperty, giving each resident the right t ccupy a specific apartment r unit. Student Husing Multi-unit husing nt wned by any schl affiliate, but due t its prximity t a university, cllege, r trade schl, has a resident prfile that is primarily, if nt slely, made up f students. Frm Specific Instructins: These are the instructins that will explain the requirements and prcedures that are applicable t all inspectins cmpleted n a specific type f frm. They are r will be available in the Training Materials Sectin in CSI alng with ther training items created specifically fr inspectrs. Client Specific Instructins: These are instructins that are available in CSI with each inspectin frm. These instructins cntain the specific and unique requirements fr the client wh has requested the inspectin. The Client Specific Instructins d NOT include the General Instructins fund in this dcument r any Frm Specific Instructins that are applicable t all inspectins fr a specific frm type such as Fannie Mae, MBA, Freddie Mac, r CMSA inspectins. Tp f the Dcument Tips fr Perfrming Better Inspectins: Intrductin: The infrmatin prvided here, if fllwed, will help yu perfrm better prperty inspectins. These are general tips that apply t mst, if nt all, Cmmercial Prperty Inspectins yu perfrm fr Spectrum Specialty Inspectins. Please read thrugh these tips and utilize the infrmatin in the inspectins yu are asked t perfrm. Tips: Fr multifamily, use the Internet t check apartment rental websites fr cmments frm current and past tenants abut the Subject Prperty befre yur visit. Mst managers mnitr these sites and are mre than willing t address shrtcmings r negative cmments that are psted. Drive r walk the cmplex befre ging t the Office t meet the manager. This will give yu an pprtunity t frm a first impressin f the Subject Prperty. If yu nte deferred maintenance, 8 P a g e
yu will be able t ask questins abut the issues during the interview sectin f the inspectin r during yur walk thrugh (if accmpanied). The best case scenari is t interview the manager and walk the Subject Prperty with the maintenance supervisr. Yu will receive a different perspective n the Subject Prperty frm the maintenance supervisr. The maintenance supervisr and his team are the peple perfrming the wrk at the Subject Prperty and typically will be prud t shw ff their wrk r infrm yu f wrk that shuld be dne. If part f the scpe f the inspectin and if the infrmatin is prvided t yu, yu shuld cnfirm that repairs reimbursed frm the repair accunt r replacement reserve accunt were cmpleted in a gd and wrkmanlike manner. Des the wner have a plan t repair the deferred maintenance? If s, is the plan realistic? D they have the funds t cmplete the plan? D they have the staff t cmplete the plan? If part f the scpe f the inspectin and if the infrmatin is prvided t yu, cnfirm that the Brrwer has cmpleted the repairs needed accrding t the last inspectin reprt (r engineer s reprt fr first inspectins). Ask the maintenance supervisr if she/he faces any particular challenges in maintaining the Subject Prperty. Ask the manager r maintenance supervisr if she/he is aware f any deferred r therwise unaddressed maintenance issues. Listen carefully t what the maintenance supervisr says and/r desn t say. Maintenance supervisrs can be ne f the best surces fr prperty level infrmatin. Pay particular attentin t prperties that are self-managed by the Brrwer. Typically, these wners tend t replace carpets, fixtures, appliances, etc. later than the Client prefers. Brrwers wh self-manage prperties tend t perfrm sme r much f the maintenance wrk themselves. Dwn Units: Check t see if the dwn unit is being cannibalized (appliances and/r fixtures being remved frm the dwn unit t be used in anther unit). Dwn units are clear indicatrs f management prblems including a lack f wner cmmitment, and cash flw strain. As a result, the Subject Prperty may suffer frm lack f market appeal, ptential reputatin prblems, increased vandalism ptential, and are cause fr further deteriratin. Yu shuld select the units, rms, and/r bays t be walked. Prir t the inspectin, Management shuld be tld that all tenants shuld be ntified f the cming inspectin. That way, yu can select any unit, rm, and/r bay n the Subject Prperty including any unit, rm, r bay that appears t have physical issues r cncerns. When selecting units, rms, r bays t inspect, yu might cnsider last year s vacant and dwn units, this year s vacant and dwn units, randm sampling f ccupied units, including all unit types, and units in any area the manager seems t be directing yu away frm. An inspectin f ceilings in tp flr units, rms, r bays can reveal whether r nt there are rf leaks. Carefully dcument yur bservatins f the Subject Prperty cnditins with phtgraphs and ntes. Establish a cnsistent methd f taking detailed ntes. Gauge the level f tenant cmplaints while walking the Subject Prperty. Talk t tenants when given the pprtunity. Nte the familiarity between manager r maintenance supervisr and tenants. If apprpriate and within the plicies and prcedures f the Client, share yur findings with the manager and/r maintenance supervisr befre departing the Subject Prperty. D nt surprise the prperty staff with yur findings. If pssible, discuss any deferred maintenance with the persn escrting yu arund the Subject Prperty when yu nte 9 P a g e
the prblem. Ask fr plans n repairing the prblem and ask if funds are available t cmplete the prject. Be sure t take phtgraphs f all deferred maintenance nted. Frame the phtgraphs t give the viewer the best perspective f the situatin, e.g., is there a small mildew prblem r is the rm verrun with mld. Ask fllw-up questins t understand the situatin at the Subject Prperty. Check yur camera peridically during the inspectin, t assure yu actually have phtgraphs, that they are in fcus, and that the pictures tell the stry, befre leaving the Subject Prperty. Fr all deferred maintenance r life safety issues yu shuld prvide enugh detail in yur cmments s that the Brrwer can be given detailed infrmatin that can be tracked, e.g., if there is a sagging gutter/pthle/heaved sidewalk include the lcatin in yur cmments r pht captin. Even if there is an endemic prblem, cite lcatin(s) f example(s). Allw enugh time t thrughly inspect the Subject Prperty. Walk all cmmn areas including amenities. Carefully fllw client requirements fr inspecting the Subject Prperty. D nt allw the manager/maintenance supervisr t steer yu arund the Subject Prperty. Yu shuld insist upn ging int the areas yu have chsen fr the inspectin. If the manager s key will nt pen a unit yu requested t see, make any reasnable attempts t view the unit/area while at the Subject Prperty. If yu are unable t gain access after a reasnable attempt, make a nte in the inspectin reprt abut the lack f access; be as specific as pssible abut the lcatin f the blcked unit/area and the attempt t gain entry. Tp f the Dcument Pht Tips: The primary purpse f the inspectin phts is t give the reader an encmpassing, general idea f the exterir and interir cnditin f the Subject Prperty, t supprt the Inspectr s findings, and t emphasize any deferred maintenance issues. The number f phts required is determined by the varius clients wh rder inspectins. Refer t CSI and the Client Specific Instructins fr the actual number f phts required. When phtgraphing a Subject Prperty, the Inspectr shuld start with the apprach, including signage, street views, and entrances; then include the grunds (parking/landscaping/lighting), building exterir (frnt, sides, and rear), majr prperties within a tw- r three-blck radius that impact the Subject Prperty, exterir deferred maintenance, and interir units r spaces, fllwed by any interir deferred maintenance issues. Final Tips fr Inspectins: Try t give brrwer/prperty cntact advance ntice f the inspectin. Request the n-site cntact t be the individual(s) with the mst knwledge f the prperty cnditin and peratins. Be realistic with the number f inspectins scheduled in a day Allw adequate time fr the management interview as well as the prperty inspectin. Review frm questins befre inspectin. Befre the site visit Find the Subject Prperty Drive the neighbrhd 10 P a g e
Make ntes f questins t ask regarding submarket Drive the Subject Prperty G t the ffice Management Interview Build a rapprt, but keep cntrl f the interview Learn abut management s viewpint f the asset and peratins Evaluate Management Perfrmance Ask questins in a friendly manner remember, it s nt an interrgatin Ask fllw-up questins dn t just cmplete the frm. Understand the situatin at the Subject Prperty. Are there any dwn units r bays? Dwn unit r bay any unit r bay that cannt be made rent ready with rutine maintenance. Dwn units r bays are bvius indicatrs f prblems Lack f wner cmmitment Cash flw strain Lack f market appeal; ptential reputatin prblems Increased vandalism ptential Cause fr further deteriratin Are units being cannibalized? Share yur findings with the manager befre departing the Subject Prperty Befre leaving the site, check yur camera t assure yu have pictures and write quick ntes. Drive the neighbrhd again t test yur initial impressins. Tp f the Dcument 11 P a g e