Property Condition Assessments
The property condition assessment is the fundamental building block upon which a long-range capital or reserve spending plan is based.
Baseline Property Condition Assessment
As the name implies, a baseline property condition assessmentĀ is used to establish a baseline, or starting point, from which the planning and reserve funding process begins. Until you know where you stand with respect to the current condition of the subject property and immediate spending needs, it is all but impossible to determine the reserve spending that will be required to maintain the value and functionality of the property over the long-term.
The objective of a baseline property condition assessment is two-fold: the first objective is to identify near-term maintenance and renewal projects that are required to bring the facility up to a predetermined condition state.
The second is to establish the long-term facility maintenance and renewal plan that will ensure the optimum performance and maximum service life of the building assets.
Capital Needs Assessment
The capital needs assessment focuses specifically on identifying, quantifying and budgeting for the long-term expenditures that will be required to renew and replace capital assets when they reach the end of their service life.
The capital needs assessment process does not address maintenance spending or the schedule by which the assets should be maintained. The capital needs assessment is usually designed to reflect the rate at which capital assets are being depreciated for tax or accounting purposes. Hence, maintenance and non-capital expenditures required to maintain the facility are not the focus of the assessment.
Whether your objective is long-term ownership of an investment property or creating a financially sustainable common interest community CRC can assist you with your property assessment needs. To learn more please contact our offices or use the Request a Proposal link to request a proposal.