When requesting a property conditions assessment (PCA) your central questions are:
- What are the deficiencies and defects?
- How much are estimated costs for repairs and replacements?
Whether a lender, a potential buyer, an owner, or a property manager you want to evaluate how these will affect the forecasted financial performance of the asset. Problems that might later arise with the physical-property could have an adverse impact if they are not identified or are improperly budgeted.
So the quality of the PCA and the accuracy of the cost estimates are paramount.
We understand how this process closely interfaces with your pro forma and the asset management plan. It is all dependent on the quality of information upon which you base your assumptions. Expert examination of the property is the key. Without it some of your assumptions will be inherently flawed and could later come back to bite a piece out of the expected return.
On the surface some building components sometimes appear to be in good condition, but underneath is an entirely different story. Internal damage can often occur for years without any outward signs or indications of a problem until it reaches an advanced stage of deterioration affecting adjacent materials. Then the cost is much greater than had it been identified and addressed earlier.
The same applies to assessing building systems such as HVAC, electrical, and plumbing which demand specialized expertise to identify issues in operational performance. While appearance and age are commonly used as assessment criterion, even fairly new, good-looking equipment can perform poorly and inefficiently. Faulty designs, improper installations, and ineffective maintenance are not as obvious as an old, aged system.
Promaneer tailors the scope of a PCA to fit your property-specific needs. We recognize not every party has the same purposes in terms of information granularity as dictated by the objectives and goals for a particular property. From a detailed capital reserve analysis to present-value cost estimates, we align the deliverables to your requirements. Talk to us and we’ll help you determine the future capital to be invested.
Click here for an example Property Conditions Report.
