Frequently Asked Questions

It is important to ensure the accuracy of lease audits and the physical condition of your asset. As nationally certified operators, we provide an unbiased perspective on your asset's operations.

Perhaps you struggle to find qualified on-site or corporate operators as a management company. Are your regionals overworked, and are you constantly looking for onsite staff to fill positions? Outsource your lease audits and property inspection to Bear Asset Management and ensure these reports are done with the attention they deserve.

As a Lender, your only verification of value is the appraisal, which requires a percentage of a lease audit. I posit that an appraiser is not qualified to complete a lease audit. Full lease audits are needed with the fraud occurring in the multifamily industry; hiring nationally certified third-party operators ensures you receive an unbiased, certified rent roll. 

Bear Asset Management offers various asset management services, including lease audits with certified rent rolls, capital expense reports with a physical property inspection, market analysis, investment analysis, and asset management. We also provide assistance with full-service Sponsorship, GP/LP, TIC, 1031 structures, and asset management.

A Certified Apartment Portfolio Supervisor (CAPS) is a National Apartment Association Certification. It requires a minimum of 24 months of multi-site supervisor experience. One must complete 40 hours of CAPS coursework and meet all examination standards within 6 months.

Additionally, a CAPS must take continuing education annually to ensure we know the industry's best practices.

 The CAPS program focuses on the following topics:
 

• Recruiting high-performing employees
• Employee performance, engagement, and retention
• Minimizing conflict through stakeholder communications
• Ethical behavior and conflicts of interest
• Annual operating budgets and owner performance objectives
• Property and portfolio results
• Due diligence process
• Property takeover process
• Capital improvement plans
• Managing risk through inspections, follow-up procedures, and incident reporting compliance
• Minimizing legal risk and liability
• Regulatory agency oversight of assisted housing
• Analyzing property performance data to inform action
• Management agreements
• Evaluating and reporting property performance using key performance indicators

A Certified Apartment Manager is a National Apartment Association Certification. It requires a minimum of 12 months of on-site property management experience. One must complete 40 hours of CAM coursework and meet all examination standards within 6 months.

Additionally, a CAM must take continuing education annually to ensure we know the industry's best practices.

 The CAM program focuses on the following topics:
• Managing the sales process;
• Managing residents’ relationships;
• Managing the property;
• Managing personnel;
• Risk management;
• Analyzing, projecting, and managing the financial performance of the property;
• Evaluating the property, including financial data and market survey data. 

A comparison of lease documents to a rent roll should be done semi-annually. This will reveal any overbilling or, more frequently, underbilling of residents. This can be in any move-in line item or recurring monthly billing. The categories are usually minor, such as pet rent, amenity rent, utility bill back, parking fees, and human error. While we are moving to online-integrated systems, this issue is still quite prevalent in our industry. A physical audit is required.

Example: 300 Unit Apartment Complex

Lease Audit Results

Pet Rent: 5 Units @ $30/Unit = $150

Valet Trash: 6 Units @ $15/Unit = $90

Cable and Internet: 2 Units @ $50/Unit = $100

Insurance Billing: 5 Units @ $12/Unit = $60

Security Deposit Discrepancy: Entered a $1000 on the Rent Roll while the lease document shows $400

Exposure:

Monthly Exposure: $150+$90+$100+$60= $400/Month

Annual Exposure: $400 * 12 Months = $4,800 + Security Deposit Discrepancy $600

Total Annual Exposure = $5,400

Property Value Increase @ 5 Cap = $108,000

Constant attention to trip hazards, fire extinguishers, cable lines, dumpster corrals, curb appeal, capital improvements, comment space, and visible resident space (patios) can ensure your onsite team's ability to command market rent. A willingness to pay high attention to detail and maintain your multifamily asset is daunting. While your manager should ensure grills are not on the patios, frequent additional accountability is needed. Quarterly personalized inspections ensure that onsite staff and ownership know what is being maintained and what is falling through the cracks. We only provide the facts with on-location photos and analysis. 

Staying on top of your asset's physical condition can prevent city notices, increase retention, and improve its overall curb appeal.

A sponsor is someone who sources a transaction for a third-party investor. For a percentage of profit and fees, they locate an asset that fits specific criteria provided by an investor group. They source and often obtain debt facilities to execute the agreed-upon business plan. 

Throughout the transaction's horizon, quarterly reports from both management and sponsorship are sent to the investor group. The middleman, who is responsible for using the industry's best practices as the intermediary between ownership, management, and tenants, has a fiduciary responsibility to the investor group.

Providing full-service transactional advice, independent third-party reports, interviewing of management companies, capital improvement bids, and execution of the overall business plan.