TOP TEN REASONS FOR FAILING A MANAGEMENT AND OCCUPANCY REVIEW Presented by Robert Kriensky GH CAPITAL, LLC

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TOP TEN REASONS FOR FAILINGA MANAGEMENT AND
OCCUPANCY REVIEWPresented byRobert KrienskyGH
CAPITAL, LLC
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Number 10 Reason

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

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Number 9

• Failure to complete preventative maintenance,
  past due work orders, incomplete work orders
  and/or deferred maintenance. Did not correct
  HQS findings from last REAC.

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Number 8

• Errors that were noted in prior
• MORs were not addressed

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Number 7

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

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Number 6

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

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Number 5

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

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Number 4

• Failure to have all the documents available for
  the review

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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.

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Number 2

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

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Number 1

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

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TOP TEN REASONS FOR FAILING A REAC
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Number 10

• Failure to hire the right team for the property.

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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.

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Number 8

• Failure to make sure every apartment on the
  property has power. No power can lead to many
  level 3 findings

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Number 7

• Failure to prepare common areas such as office,
  shop, utility rooms or closets, common areas and
  grounds.

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Number 6

• Failure to make sure to eliminate health and
  safety items

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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.

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Number 4

• Failure to pre-inspect days prior to a REAC
  using an inspection report that is continuously
  updated after each REAC

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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....

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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

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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.