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Financed Properties Multifamily Servicing Requirements

Management Risk Requirements

Existing Properties New Properties Options
  • Management plan
  • Site visit
  • Courtesy/follow-up calls
  • Management capacity
  • Board composition and qualifications
  • Compliance with reporting requirements
  • Response to tenant requests and property needs
  • Procedures (management plan)
  • Outside interest/related parties

 

 

Market Risk Requirements

Existing Properties New Properties Options
  • Quarterly occupancy report
  • Waiting list
  • Quarterly occupancy report
  • Market study/appraisal
  • Marketing plan
  • Updated market comparability
  • Explanation of market change/fluctuation
  • Tenant profile
  • Site visit
  • External market conditions

 

 

Financial Risk Requirements

Existing Properties New Properties Options
  • Annual audit
  • Capital budget
  • Quarterly occupancy report
  • Site visit
  • Budget
  • Cash flow statement
  • Cash balances
  • General ledger
  • Annual profit and loss (in lieu of audit)
  • Annual balance sheet (in lieu of audit)
  • Invoices (paid/outstanding)
  • Internal controls
  • Rent roll
  • Accounts receivable
  • Interim reporting
  • Management fees
  • Owner distributions/contributions
  • Variance explanations
  • Related party transactions

 

 

Physical Risk Requirements

Existing Properties New Properties Options
  • Physical inspection performed as needed
  • Physical inspection performed shortly after completion