Sample report
This is what you receive after the ten questions. The answers below are an invented owner’s, not a real client’s. Yours is scored the same way and is free.
Your Property IQ
Your score is 56 out of 100.
You are holding it together, and it is costing you more than it looks.
You have a handle on the property, but the answers show the strain of doing it alongside everything else. The items below are the ones most likely to turn into a real number: a delayed closing, an uncollected recovery, a tenant who does not renew.
Results: question by question
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01 Have you considered the opportunity costs associated with self-managing your property?
Well coveredYour answer: Yes
Recognizing the opportunity cost is the first step. Time spent managing property issues is time that cannot be spent on your business, your clients or other priorities. Call us to find out how our services can keep your attention where it needs to be.
Why we ask
Managing your own property can appear to save money, but the larger cost is often your time and attention.
Every hour spent dealing with tenants, vendors, repairs, collections or property issues is an hour not focused on your business, your investments, your family or your future.
Good property management is not simply about handling the building. It is about putting it back where it belongs in your life.
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02 How often do you review service and vendor contracts to guarantee the best terms and value?
Worth acting onYour answer: From time to time
You need a system. Vendor pricing, service levels and contract terms change over time. Regular review helps identify unnecessary costs, weak service and opportunities to negotiate better terms.
Why we ask
Prices and services are constantly changing, and sometimes so is the quality of service your vendors provide.
Their crews also change regularly, and you do not want that to affect your investments.
Most service contracts are in effect for one year, and many auto-renew if notice is not given by a set date.
At RWPS, it is our business to keep an updated list of vendors and contractors. We regularly rebid services to ensure you are getting the best price, value, service and quality.
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03 Who meets property inspectors, contractors and repairmen at your properties?
Worth watchingYour answer: I always handle it directly myself.
Recognizing the opportunity cost is the first step. Time spent managing property issues is time that cannot be spent on your business, your clients or other priorities.
Why we ask
The real issue is not simply who opens the door. It is whether the person representing you knows enough to protect your interests.
Contractors, inspectors and service providers routinely make observations, ask questions and encounter conditions that can affect cost, liability and future maintenance.
Effective oversight means having the right person there for the particular job, without requiring the owner to personally attend every visit.
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04 How do you respond to tenant service requests?
Worth watchingYour answer: I generally respond myself as quickly as my schedule permits
Tenant satisfaction and retention directly affect the stability and value of your property. But handling service requests yourself means property issues compete with your business, family and other priorities, and responsiveness can suffer when something else demands your attention.
Why we ask
You should not be taking time away from your business, or your family, to spend time on the phone with your tenants or meeting them at your property to inspect their issues.
A property manager also puts a buffer between you and your tenants. Someone else can deliver difficult news, enforce the lease and push back on a request, while you stay the owner your tenants want to keep on good terms with.
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05 Which best describes how you manage DSCR and the other ongoing obligations in your loan agreement?
Worth acting onYour answer: I only have a couple of vacancies, so I am not concerned
Depending on the actual income lost to those vacancies, it could be a very serious concern. DSCR and other requirements may involve reporting, maintaining sufficient reserves or other obligations, even if every payment is on time and the property seems fine.
Why we ask
Commercial loan agreements often contain more than a monthly payment obligation.
Depending on the loan, there may be financial tests, reporting requirements and other conditions that continue throughout the loan term.
It is not just about the moment the loan was signed. It is also about whether you are still monitoring those requirements before a problem develops.
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06 How confident are you that your property complies with current municipal codes and permit requirements?
Worth acting onYour answer: I recently refinanced or had other due diligence done, so I assume any problems would have come up then.
Recent due diligence gives you some comfort, but it is not the same as an ongoing compliance review. A lender, appraiser or inspector may have been focused on different issues, and municipal problems can go unnoticed or arise after the transaction closes.
Why we ask
Code and permit problems stay quiet until something forces a closer look.
Open permits, unapproved work and code violations rarely announce themselves. They surface when a new tenant needs a certificate of occupancy, when a lender or buyer orders a search, or after an incident, which is exactly when you have the least time and the least leverage.
Repairs, alterations and tenant work keep adding to the record over the years. A periodic review keeps it current, and keeps a small fix from becoming a reason a deal stalls.
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07 How often do you physically inspect your properties?
Worth watchingYour answer: Regularly, about once a month
Monthly attention is a good habit. Depending on the property, however, a lot can happen between visits. Certain conditions, property profiles, repairs or tenant activity may warrant more frequent eyes on the property.
Why we ask
Properties need regular eyes on them, not just when something breaks.
Routine walk-arounds can uncover maintenance, appearance, safety and tenant issues while they are still manageable.
The right number of visits depends on the property. But letting your tenants know you care, and are watching, and having a consistent inspection routine for following up on what needs to be addressed, is non-negotiable.
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08 How confident are you that you are collecting all of the CAM and other charges you are entitled to?
Worth watchingYour answer: I’m fairly confident, but we haven’t done a detailed lease and billing review recently
You need to know. This is an area you cannot verify without checking the leases against the actual billing. A periodic review can uncover missed recoveries, incorrect calculations or charges that have simply fallen through the cracks.
Why we ask
"Slippage" is income the property is entitled to collect but does not, simply because lease provisions are misunderstood, overlooked or billed incorrectly.
The reverse is also true: overbilling, when discovered, can lead to penalties and claw-backs from tenants.
CAM, taxes, insurance, utilities, increases, late charges and other recoveries can vary from lease to lease, even in the same building.
The problem is easy to miss because the tenant may be paying exactly what you invoice. A periodic comparison of the leases, the expenses and the actual billing can identify money that is quietly slipping through the cracks.
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09 Which of these items should typically be included in your lease abstracts?
Worth watchingYour answer: Tenant name; Renewal and notice requirements; Common-area reimbursement provisions; Tenant insurance requirements; Security-deposit amount and requirements
8 of 10 right.
- Use restrictions and exclusives Should be checked.
- A reminder to call RWPS if I don’t know what belongs in the abstract Should be checked.
Why we ask
A good lease abstract turns a tedious legal document into a working management tool.
It should capture the financial obligations, critical dates, options, notice requirements, expense provisions and other terms for those who will ultimately need to enforce the lease and manage the tenants.
Thinking you can remember what the lease says is a recipe for trouble. With multiple tenants or properties, different lease forms and amendments over time, important obligations can easily be missed unless they are summarized and tracked consistently.
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10 Do you know what competing properties are offering your tenants when they shop for new space?
Worth watchingYour answer: I check LoopNet regularly and know what the competition is asking
Good, but asking rents tell only part of the story. First, "asking" and "getting" are two different numbers. Your tenant may be comparing their current rent with an offer that includes several months of free rent, tenant improvements and amenities you cannot offer. Those and other incentives can materially change the economics.
Why we ask
An ounce of prevention is worth a pound of cure.
Your competitors may be making an offer to a tenant you think is perfectly satisfied. And it is more than just the rent: it is knowing what the competition is offering in amenities, expansion, building class and incentives.
The cost of replacing a tenant, with a few months or more of lost income, carrying costs, leasing fees and tenant improvements, can easily outweigh the concessions that might have secured a renewal.
Effective property management is proactive. It means monitoring the market before tenants start making decisions about leaving.
Where you stand
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Compliance & Risk 55%
Your weakest area
Permits, code, licensing, insurance, fair housing and loan obligations: the things that surface at the worst possible moment, in a refinance, a sale or a claim.
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Income & Collections 56%
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Cost & Capital 57%
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Time & Attention 61%
What we found, most important first
9-
01
Worth acting on
How often do you review service and vendor contracts to guarantee the best terms and value?
Your answer: From time to time
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02
Worth watching
How do you respond to tenant service requests?
Your answer: I generally respond myself as quickly as my schedule permits
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03
Worth acting on
How confident are you that your property complies with current municipal codes and permit requirements?
Your answer: I recently refinanced or had other due diligence done, so I assume any problems would have come up then.
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04
Worth watching
Who meets property inspectors, contractors and repairmen at your properties?
Your answer: I always handle it directly myself.
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05
Worth watching
How confident are you that you are collecting all of the CAM and other charges you are entitled to?
Your answer: I’m fairly confident, but we haven’t done a detailed lease and billing review recently
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06
Worth watching
Do you know what competing properties are offering your tenants when they shop for new space?
Your answer: I check LoopNet regularly and know what the competition is asking
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07
Worth acting on
Which best describes how you manage DSCR and the other ongoing obligations in your loan agreement?
Your answer: I only have a couple of vacancies, so I am not concerned
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08
Worth watching
How often do you physically inspect your properties?
Your answer: Regularly, about once a month
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09
Worth watching
Which of these items should typically be included in your lease abstracts?
8 of 10 right.
Next steps: where we would start
Property Management
7 of your 9 findings are day-to-day work: vendors, tenants, inspections, compliance and collections. That is exactly what a property manager takes off your desk.
See what that coversYour own report takes about five minutes.
Ten questions, your score on screen the moment you finish, and no email address needed to see it.