Property Condition Assessments in Colorado

What is a Property Condition Assessment?

A property condition assessment (PCA) is a routine and thorough evaluation of the systems of a commercial, mixed-use, or multi-family residential rental property. Its main objective is to identify and communicate the current condition of the subject property, after which a final report is generated. This property condition report (PCR) is developed to give the owner a clear idea of possible areas of improvement, prioritization of maintenance schedules, and renter adherence to rental agreements. A PCA will help identify conditional as well as systemic issues within the facility. Ideally, this data will culminate in a realistic projection of expenses for ongoing maintenance over a defined period.

JDS Home Inspection Services of Denver, CO, now offers property condition assessments and reports at competitive prices, tailored to the needs of the individual investor, lender, landlord, renter, or subject property. Your qualified Denver property inspector will evaluate the condition of the facility and its equipment to ensure that assets are operating according to established operational and safety guidelines. Items that are not up to standard are noted in the final report so that they may be addressed before problems arise. The property condition report includes organized and detailed evaluations as well as photos of individual deficiencies and conditions.

The property condition assessment is sometimes called a facility condition assessment, capital needs assessment, or building condition assessment. It may also be referred to as a backlog study depending on the intent of the assessment.

While many facilities allow these evaluations to be completed by their in-house personnel, this practice takes time away from existing maintenance schedules and may allow smaller issues to balloon into large issues unnoticed. The importance of having your evaluation preformed by a qualified third party property inspector cannot be understated. JDS Home Inspection Services of Denver is trained to perform property condition assessments with a breadth of knowledge and expertise in all of the facility’s systems with an unbiased and objective eye. Our inspectors are trained to detect issues that may go unnoticed by the untrained eye and spot symptoms of issues that may otherwise be hidden from view.

Scheduling a PCA to take place every three or six months is part of a proactive asset management strategy that not only verifies work was completed to the client’s standards in a timely fashion but also creates a record of maintenance and repairs which can be referenced in the event of disputed damage or mechanical failure.

JDS Home Inspection Services utilizes the latest iteration of ASTM’s Baseline Property Condition Assessment Process (E2018) as our basis for property evaluations and employs both ASHI and InterNACHI certified inspectors to perform evaluations of all properties large or small. Whatever your inspection needs, whether for a small, single-family residential purchase, or a 400 unit multi-family residential investment, JDS Home Inspection Services of Denver, CO, is your one-stop shop for all things home inspection, including property condition assessments.

Who Would Benefit from a Property Condition Assessment?

1. Buyers or Investors: Prospective buyers or investors in commercial real estate often order a PCA as part of their due diligence process. They do this to assess the physical condition of the property and to identify any potential issues or risks before completing the purchase. The findings in the property condition report can influence their decision to proceed with the transaction or negotiate terms with the seller.
2. Lenders: Lenders providing financing for a commercial real estate transaction may require a PCA to assess the property’s physical condition and confirm that it aligns with their lending criteria. The lender wants to ensure the asset is in good condition and hidden or deferred maintenance issues do not significantly compromise its value.
3. Property Owners or Sellers: Property owners or sellers may proactively order a property condition assessment before listing their property for sale. This allows them to address maintenance or repair issues in advance, potentially increasing the property’s marketability and value. It can also help owners understand and disclose the property’s true condition to potential buyers.
4. Property Managers: Property management companies or asset managers responsible for the operation and maintenance of commercial properties may order property condition assessments as part of their ongoing asset management strategy. These assessments help plan long-term, budget, and prioritize maintenance and repairs.
5. Landlords: Landlords have the right and the opportunity to schedule with tenants to have a rental property condition assessment that evaluates the rental property for potential maintenance issues, upcoming appliance replacements or repairs, and renter adherence to rental agreements.
6. Tenants: In some cases, tenants looking to lease space may request a PCA as part of their due diligence to ensure that the property meets their specific needs and is in good condition for their intended use.
7. Real Estate Developers: Developers considering acquiring a property for redevelopment may order a property condition report to understand the site’s existing conditions and structures. This information is essential for determining the feasibility of the redevelopment project.
8. Partners or Stakeholders: In partnerships or joint ventures involving commercial real estate, a stakeholder may order a PCA to assess the property’s condition as part of their risk management and investment evaluation process.

What Types of Property Condition Assessments are Offered?

Due to the variety of residential rental properties in Colorado, from single-family homes to entire apartment communities, the type of assessment needed by the client must be first and foremost tailored to the individual needs of the client.

JDS Home Inspection Services of Denver offers tiered levels of property condition assessments to meet most client needs. These tiers increase in complexity and the amount of information provided, depending on the desires of the client.

Your qualified JDS property inspector may meet with you in person or over the phone to discuss your specific property assessment needs in order to create the most cost effective and beneficial PCA for you. Please contact JDS Home Inspection Services for your customized quote.

Below is a basic description of each tier:

Tier 1 Property Condition Assessments

Estimated time per unit: 15-30 minutes

Tier 1 Property Condition Assessments are the most basic evaluation of your property’s major systems – including electrical, plumbing, HVAC, etc.  All units are tested for operation and evaluated for installation and maintenance to give you a general overview of the property’s baseline condition.

Tier 1 Assessments are often utilized as quarterly evaluations to prioritize maintenance scheduling for the facility manager. They may be used by owners or tenants to determine and document existing conditions at the time of tenant first occupancy.

These assessments are not intended to create a full and comprehensive overview and report of the subject property, merely for regular maintenance purposes.

Tier 2 Property Condition Assessments

Estimated time per unit: 30-60 minutes

The best choice for a more comprehensive evaluation and detailed report of the condition of the property. Tier 2 Property Condition Assessments include a full evaluation off all major systems with a detailed condition report and estimated serviceable lifespan.

Detailed living space evaluations as well as resident interviews may be performed to offer a more complete understanding of the property.

This tier identifies problem areas such as moisture, pests, and fire safety, as well as giving an estimation of serviceable lifespan of all major systems. JDS inspects the structure, exterior, roof, electrical, plumbing, HVAC, interior, insulation, and ventilation. Rental agreement violations are also included.

Tier 3 Property Condition Assessments

Estimated time per unit: 1-2 hours

Tier 3 is our most in-depth and informative property condition assessment, intended for investors or owners of real estate portfolios, or as part of a commercial real estate transaction. This is a complete inspection meeting all requirements of the American Society of Home Inspectors standards of practice.

A Tier 3 assessment details the overall condition of a facility to support capital investment decisions, including capital budgeting and planning, establishing and prioritizing long-term reserves, and pre-purchase due diligence. This assessment may also be used to secure additional funding. Furthermore, federal and state government facilities may have to comply with periodic reporting requirements for annual funding.

Tier 3 assessments include a full evaluation of all interior living spaces, exterior, roof, structure, appliances, HVAC, plumbing, and electrical, as well as detailed graphs and inventory tables in reference to estimations of future replacement costs, a prioritized list of repairs, and graph of estimated serviceable lifespan of existing units.

Client-Tailored Property Condition Assessments

Additional services may be applied to Tier 3 PCA’s including sewer scoping, radon testing, mold testing, and thermal imaging. Your qualified JDS property inspector can discuss with you the relevance of these added services depending on your situation.

The specifics of each Tier may also be tailored according to individual client or property needs.  Specifics of such alterations or amendments will be discussed before the property evaluation takes place.

For first time clients, JDS Home Inspection Services recommends an initial Tier 2 or 3 evaluation of each property followed by annual, six month, or three month Tier 1 assessments as part of regular facility maintenance.

How to Prepare for a Property Condition Assessment

Once the scope of the assessment and pricing has been determined, it’s time to prepare for the survey portion of the PCA.  This will help ensure a thorough and efficient evaluation. Here are some tips to help you prepare:

1. Gather all relevant documents related to the property, such as building plans, permits, and records of any repairs or renovations that have been done.
2. Ensure that the property is easily accessible and that all areas, such as attics, crawl spaces, and utility rooms, are accessible and free of clutter.
3. Ensure that all areas of the property, including locked areas and mechanical rooms, are accessible.
4. Inform tenants and occupants of the property about the upcoming evaluation and what to expect.
5. Identify specific concerns you have about the property that you would like the inspector to focus on during the assessment.

By following these tips, you can help ensure that any potential issues or risks are identified in a timely manner.

Property Condition Assessments in Colorado

Are you interested in having a property condition assessment (PCA) performed on your rental or commercial investment property? Contact JDS Home Inspection Services of Denver, Colorado, to get started right away. Call JDS directly at 303-809-8894 or email john@bestpricehomeinspection.com for your tailored and competitive property condition report.