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Winter Break!

After a very cold and grey January, the change in weather offers an opportunity to get out and inspect our properties. The focus on these exterior inspections should first be on drainage areas. The winter storms of November and the deep freeze that followed can create new challenges that we did not see in the fall.

Down spouts are often a key area of concern. Make sure that all parts of the drainage system are secure and functional. Remember that directing the water away from the foundation of your home or business is Job 1. Visually inspect the roof looking for any damage an ice dam may have caused or for blockages. Not a great time of year to be breaking out the ladder but if you can see leaves and water stains then a problem is looming.

Next on my list is always looking for wet areas and mud. With the very limited precipitation over the last 2 months there should not be any. A wet and muddy area is a sure sign of poor drainage or even worse leaking water lines. Depending on the severity action may be needed. Longer term, we should look at landscaping projects to improve the flow of water away from any pooling areas.

Lighting in and around the building is always on the inspection list regardless of the time of year. Ensure that there are no burned-out bulbs or damaged fixtures. I strongly recommend adding sensors to these fixtures. Without them you end up manually changing the timers to reflect the current sunlight conditions. This is an effective way to improve your safety plan and reduce cost. No one wants to be paying for lighting when it is not needed. In Colorado we can expect an additional 60 minutes of daylight over the course of February.

Take the time now to get prepared. The next wave of cold and snow will surely happen. The spring storms loaded with heavy wet snow are just a few short weeks away. Making sure your drainage systems are in top working order now will save you money and time this spring.

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Ground Hogs Day!

Just like the movie I find myself repeating the updates to the entries on this blog. For those following the Web Site, you have seen the changes 2025 is bringing. I have pivoted to a consulting-based business and no longer taking Real Estate clients. The focus of Red Falcon Properties is now on your daily operations, financial reporting, budgeting, capital investments, database management and Risk Management.

In order to ensure that I am not providing professional Real Estate advice to any readers I needed to removed specific posts that were focused on activities like asset acquisition. Unfortunately, removing all post during a specific period of time is the only way to clear the items from the blog. A lesson I learned several years ago. A reposting of some of the prior post focused on bidding and project management will be the plan.

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Snow Removal – Odds and Ends

Today we are going to cover some various snow removal related items. Starting with what you should be looking for when on site for a snow event. Any time you can add efficiency to your tasking it improves your management of the asset. Inspecting for drainage issues is one such efficiency. On the fall inspection report we looked at drainage but now, when there is a storm is when it is critical to check again. Fall leaves, ice, or other debris can block the flow of water out and away from the property. Checking for ice dams, or blockages up on the roof and spouting is another good item to check. This should be a visual check only. Checking to see how much snow is still on the roof can help you identify if the home has enough insulation. A snow free roof when all the neighboring houses are snow covered is a problem! In Colorado the melting of snow can happen very quickly, and the ounce of prevention can save you from serious damage to the home.

Checking for animals and other pests around the home.  A snow covered home, and yard will show any activity that may be occurring around the home. If you have had issues with racoons or squirls and they have returned it will be plain to see. A fresh blanket of snow will also show if any uninvited two-legged pest are visiting the home!

Related to contracting the snow removal, site visits after a storm are advised to ensure that all the work was done correctly. Snowplows and landscaping do not mix. Check to ensure that no turf or plants were damaged. Was the snow moved to the designated area as agreed? The area where snow is moved to should be in the sun and have good drainage. When contracting for snow removal services it is important that the company has liability insurance. It only takes one uninsured claim for damages to make the decision to outsource snow removal services a bad idea.

More for our commercial owners is looking for unauthorized or abandoned vehicles. These vehicles cause headaches in the process of snow removal as plowing around them is a challenge. If you notice a vehicle that is not moving, then document it via photographs. Once the storm has passed then start the process of having the vehicle removed from your property.

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Snow Removal –Basic Tools and supplies

The last post covered the unfortunate fact that snow removal is something you need to do! There are several options available for all owners on how you accomplish this task. Based on the size of your property, the number of properties, your proximity to the properties, and the types of properties all influence the best approach to take.

If you own and rent out a single townhome with very limited sidewalk and exterior access issues, then a do-it-yourself approach seems best. If you own a commercial building and have parking lots, entrance ways, sidewalks surrounding the building and adjacent to the street then a commercial snow removal company is your best solution. Most investors find themselves somewhere in the middle of these two choices.

The real challenge in Colorado is being prepared for the wide range of storms that we must respond to. The response to a 3-to-5-inch storm of light powder is nothing compared to the foot of heavy wet snow type of storm. Regardless of the type of storm the basic tools for these projects are needed.

The shovel seems easy enough unless you are driving around to the stores looking for one while it is snowing. Every year the big box retailers and even the local grocery stores have a supply of light snow shovels available. Having one at the property in advance is a best practice!

Push broom. Often the light snow can be removed with a nice wide push broom. Especially nice for clearing front landings and steps.

An ice melting product of some kind. With areas that get little sunlight or have drainage issues, then this is the best product to have on site. Again, purchase in advance as the supplies often are limited to non-existent once winter has settled in.

Snow Blower. When larger storms hit the advantages of a quality snow blower cannot be beaten. These are costly and can be challenging to store and require maintenance.

Snow broom. A light duty snow broom is a nice tool for these storms. Especially the lighter storms where the snow can be easy to move. The advantage these have over shoveling long sideway areas or even driveways make them a nice addition to the tool kit. Your back will appreciate it!

A non-traditional item is basic cat little. A good clay-based cat litter provides traction in areas where ice builds up. The nonchemical approach appeals to some, and the product is easier on the lawns and plants compared to the ice melting products.

 Winter boots, coats, gloves, and hats! All too often you see someone outside in the snow and they are not properly dressed for the project. Include a good pair of sunglasses or even ski goggles in your snow removal clothing.

As a property management company, we have several owners who use our services for snow removal. Other real estate professionals use our services for vacant homes.  New owners often find that trying to hire the neighborhood kids to shovel sounds good until the bigger storms hit and they are nowhere to be found. Trying to get a commercial company to respond when the entire city is blanked with snow is beyond challenging.

Our advice is preplanning for snow removal as it is going to happen sooner or later. Every fall we order several pallets of the chemical ice melting products, new snow shovels and brooms. These supplies are then prepositioned at each of the homes where we will be tasked with snow removal. Larger equipment like snow brooms and blowers are maintained and stored in anticipation of being needed. Even if you plan on doing your own snow removal or delegating it to the renter, gathering the required tools and supplies in advance is essential. It is not only cost effective but often the only chance you will have to get the products you need. We are still waiting for a pallet of chemical ice removal that has been on back order since October! Fortunately, these items do not expire and can be redeployed the following year. If you are going to outsource this task, then bid and sign contracts for the services in the fall. We will cover the bidding process in a future post.

#best practices, #budget item

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Snow Removal – Basic obligations and requirements (residential)

Starting the refresh of some older blog post by digging into (out of) the snow removal file.  We are first going to cover some of the basic issues surrounding the obligations, laws, ordinances and even HOA requirements that are related to snow removal.

While every location has its own requirements, we will be using Douglas County and the Highlands Ranch Metro district as our generic example. Both organizations have well developed PDF documents on their websites. These detail not only the homeowner scope of responsibilities but also the priorities of the county and the Metro district. For example. the Metro district uses a 3” threshold to trigger when trails and sidewalks will be plowed, when it is anticipated that the snow will remain on the ground for 24 hours. Homeowners are given 24 hours from the end of the snowstorm to complete their obligations of snow removal. The homeowners’ obligations include clearing all sidewalks in the front and on the sides of the home. It may surprise you to know that the homeowner’s obligations are extended to any adjacent mailboxes and fire hydrants! The driveway is not mentioned in the document. There is not a specific amount of snow threshold given for when the homeowner must act. Further research reveals that homeowners can be fined for failure to properly remove the snow.

With just a little research it becomes very clear that snow removal is a high priority and taken very seriously by local government and HOA officials. In this example the county and the Metro District agree with the homeowners’ obligations. Be aware that some HOA and local government obligations can be more restrictive than say a County or State regulation. It is prudent that each location is researched to ensure that as an owner you know exactly what your obligations are. Many areas extend the snow removal obligations to the renters if the home is not occupied by the owner. It is critical, when working with your legal team, that the issue of the responsibility for snow removal is covered in your lease agreement.

An item that appears in many of the actual ordinances or community rules is where you are to move the snow to. More importantly, where you are not allowed to move the snow.  A good rule to follow is never push the snow out into a street or throughway. Never block access to a mailbox or fire hydrant. In the very dry environment of Colorado moving the snow onto landscaped areas is recommended. The additional water from the melting snow gives your grass, plants, and trees a no cost boost of water that helps them survive the winter. One of the items that often appears is a request to move vehicles off the streets to allow for more efficient plowing. Nice to do if you can, and as an added benefit it protects the vehicle from damage.

In summary, no one likes to be out in the cold shoveling snow. The fact of the matter is that if you own property, you are responsible for responding to the winter storm. The potential is there for civil fines as is the risk management aspect of preventing slips and falls. In our next blog we will discuss preplanning your response to storms so that you can meet your obligations in a fast and cost-effective way.

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New Year News!

With the beginning of the new year comes new opportunities! After trying out Newsletters in 2023, as the main source of communication for our owners and residents, it is time to start blogging again. The number one item we received from our end of year request for feedback was to restart the blog. The newsletter did receive good reviews as well, so we are going to keep it around with some changes. Specifically, the newsletter will now be a quarterly publication as opposed to monthly.

Some older blogs were taken down and will be refreshed and reposted in the coming weeks. Others were outdated or no longer relevant, so they were simply removed. As always, please reach out with any ideas or request you might have for topics this page should cover. Happy New Year and here is to a great 2024!

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Fall 2022 Projects

The cool nights and the early sunsets are all signs that Autum is finally here to stay! Now is the time to winterize your property, plant your spring flowers and wrap up any projects that you budgeted for in 2022.

The number one challenge I always find in my fall inspections relates to exterior lighting. There will always be the broken or burned-out lights, but the overgrowth of trees and bushes always surprises everyone. I bring small trimmers and cutters but very often the scope of the project exceeds the challenges. I strongly recommend professional tree trimming companies in these situations. 

The other major challenge related to exterior lighting is the timers used by many owners and managers. When the seasons change these timers need to be adjusted repeatedly to keep up with the shorter days. Then again when the time changes in Mid-November (6th). A better approach is to install sensors that automatically adjust for the changes and hopefully you have included those in your current or 2023 budget!

Next key area that needs to be carefully inspected is all of the drainage areas. We have been enjoying some rain this fall after a very dry spring and summer. The goal of site inspections is to identify current problems and most importantly prevent future damage and risk exposure. A top insurance claim issue for property owners is slip and fall claims during the winter. Fixing poor drainage issues now is one of the best Risk Management actions that you can take. In addition, the damage that rain and ice can cause to a building and the surrounding landscaping is substantial. 

On a brighter note: Curb Appeal begins in the fall! Now is the time to plant your bulbs and clean up your flower beds. Those amazing flower gardens that just seem to appear in the spring are planted in the fall. I have always pushed for perennials over annuals in your garden. With smart budgeting an owner can build up an amazing garden without the substantial cost of planting every year. These types of projects can also be accomplished DIY or by site teams. Personally, I have had great success with tulips in Colorado as they are well adapted to our climate. 

Exterior projects should also include winterizing the sprinkler system. This can be accomplished by having one of the many small companies out there blow out the lines, putting a protective cover over your back flow preventer is recommended as well!

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Spring inspections and Tax season complete!

It has been a very busy few weeks with the spring inspections being completed and of course Tax season! This week all the reports, photos and completed work orders have been sent out. Many properties are showing the effects of deferred maintenance from the past 2 years. On top of that, the extended dry weather and high winds have taken a toll on the landscaping across the front range.

An unexpected effect of the last few years reared its ugly head this tax season. Hopefully all of you have maintained your relationships with quality CPAs as part of your portfolio management strategy. In many cases the reduction in preventive maintenance has resulted in much higher net incomes for many investment properties. Developing an effective maintenance program going forward will not only protect your investments but ensure that come next tax season you have reasonable expenses to offset the income. Always use professional legal and accounting firms when you are managing your portfolio!

Top issues the spring inspection revealed include fence and gate damage. This is a critical issue as many HOA governing documents require that the property fences and gates are in working order. Effective fencing and gates are also a critical safety issue. We have seen the first wave of HOA violation notices for this issue being sent out. The fence can be either individually owned, shared or even the responsibility of the HOA so be sure you are the responsible party before beginning any repairs.

The second major issue is dead grass and landscaping. Between the drought and the lack of consistent watering over the past two years, the damaged areas are widespread. This may be the year where it is cost effective for properties to convert over to xeriscaping.  There are numerous rebate programs both at the state and local level that offer rebates for converting areas over. We can help evaluate the cost benefit analysis to see if this is an approach that benefits the owner. The long-term forecasting shows that the front range will continue to be hotter and drier in the years to come. Saving all the watering and maintenance cost can really add up and increase your returns on the investment property.

Now is the time to start refreshing or requesting your landscaping bids for the new or delayed projects. The next online training conference will focus on the bid process so please let us know if you want to attend. The three key areas will be exterior painting, landscaping, and drainage projects. It does appear that the early bids are coming in at 10% to 20% over prior years. Many contractors are offering fast track discounts to offset these increases and to keep their newly hired crews busy. It has never been more important to have complete and detailed specifications prior to sending out the bid request. As mentioned earlier, these maintenance cost can also reduce the tax burdens of an asset come next year!

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Spring Inspection Time

March 2022 (P3) MAP

With the arrival of spring just weeks away it is time to pull out our MAP for the month of March. In periods one and two we organized our year and reset the financial and operational conditions for 2022. In our preparations for the new year, read budget and planning process, we set March as the first full Action and production month. So, let’s get started!

First off, remember that the time changes on Sunday the 13th this year (Spring Forward). Our first site inspections of the year are set to correspond to this. The time is right to adjust the exterior lighting at your properties. While we recommend that you adjust the timers four times per year the spring and fall equinox are the priorities. Exterior lighting is one of the best Loss Prevention tools you have! The use of sensor lighting solves this challenge but does carry additional cost. Every fixture that provides exterior lighting should be in good working order and any burnt out lighting replaced.

Interior inspections should focus on changing of the HVAC filters and replacement of all batteries. Smoke detectors and Radon detectors are critical items and need to be tested at this time. Addition items like the electronic thermostat or emergency lights should be included. This offers you the opportunity to fully inspect most of the home, apartment, or office space. A good add on to the inspection is to “test” the water heater by running the hot water in each bathroom. Again, the goal is to be able to put eyes on all parts of the rented space while you have permitted access. The value of the visual inspections, observing the overall condition of the space, is very important. All of this can be completed while accomplishing these various tasks.

Most rental agreements have specific requirements for both the tenant and the owner when it comes to scheduling and completing inspections. A best practice is to provide as much lead time as possible to your tenants and to include the items you will be inspecting. This allows the tenant to clean up any areas knowing that you will be in the rented space. Ask in your letter for any additional work orders they might have. By making these repairs at the same time as the inspection you can increase your efficiency by limiting trips to the property. DO NOT take photos of the interior of the space unless documenting damages or work orders that may need to be scheduled. If you are still putting together your Managers Action Plan (MAP) for a property this is the time to update your March form.

Other Best Practices: Date the filter and batteries you are going to install. Document the lights that needed replaced and create an exterior map of the property with all the lighting fixtures marked. In that way you can easily inspect the lighting from the exterior at other times. A broken or burnt-out light is much easier to identify if you know in advance where they are all located.

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Coach’s Corner - Extreme Cold and Snow Forecast

Quick update on the pending winter storm approaching. Three days of snow and below zero temperatures forecast for the entire Colorado front range. If you have a vacant rental home or an empty listing be sure to prepare your property for this winter weather event. 

Sometimes the old advice is still the best. Push up the thermostat a few degrees and make sure the heater is on. Close all of the blinds and curtains as a way to keep some off the cold out and the heat in. All of the interior doors to bedrooms and bathrooms should be left open to keep the flow of warm air moving within the house.

To help avoid frozen pipes, turn the hot and cold water on at a very minimal rate. Just a few steady drops of water flowing out of the faucets will help ensure that there is movement of water within the pipes. This can be accomplished by using very little water and the expense when compared to the cost of frozen pipes bursting is minimal. Another good tip is to open the cabinet doors in the kitchens, bathrooms and laundry to allow warm air from the room to penetrate into these spaces. Remember, Loss prevention begins with you! If you are unable to visit your property, put in a work order on the Web site and every effort will be made to visit the site this evening.

Snow is scheduled to start falling around 5PM today.  The maintenance crews will be out first thing in the morning and will include interior inspections of all vacant homes as an added precaution against this freeze event. 

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Snowing again!

Our next little snowstorm has arrived, not expecting more than 1 or 2 inches this time. Dropped off a snow shovel and some ice melt to a client this morning, never too late to be prepared.  Now that I am back and warm inside it seems like a good time to go over a few tips for this season.

Top on the snow removal prep list each fall is to check all of the equipment. Depending on your portfolio this can include plows, snow brooms, snow blowers or even salt spreaders. Just as important are the hand shovels and brooms. 

Hiring of a commercial snow plowing service should be bid and arranged in the fall as well. Trying to call out a vendor when the snow is already falling either fails or cost a fortune. See the RFP bid process we often discuss for some specific details for snow plowing. The vendors insurance and expected arrival and completion times are two critical items to consider.

We use or MAP to inspect down spouts, drainage and lighting in the fall as well. These safety precautions pay huge dividends when the snow is falling. Having melting snow drain across a sidewalk or a driveway is a nightmare to manage. Ice dams on the roofs can cause building damage and flooding. 

Each fall we order pallets of ice melt and new snow shovels. These items are prone to sell out even when the supply chain is working effectively. I like to spread these supplies out in key areas, so they are available when the storm hits. On large sites utility closets, maintenance garages, even the property office should be prepared with snow removal supplies. For single family portfolios, a shovel and a few bags of snow melt in the garage are worth the investment.

So be prepared for the snow because it always arrives! Then you can blog in the office with a cup of coffee while the snow flys’ outside,

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Snow Removal is Loss Prevention

Old man winter has finally been sending the front range some light snowstorms and thankfully pounding the mountains. Our last little storm did require an owner response to clear the sidewalks and the parking lots at their property. Why? Because it is likely required by your city’s ordinances or in the governing documents for residential owners. 

While our response is required, I believe that the number one reason to do effective and prompt snow removal is Loss Prevention. We use insurance to mitigate risk, but our operational actions that prevents or mitigates these claims is where we can make a difference. Handling a slip and fall insurance claim is incredibly time consuming and has few positive outcomes. When you can present all the good faith efforts made it improves your position in defending against the claim. One good example is snow removal logs at commercial and residential buildings. Be sure to also document these efforts and the time by creating snow removal work orders. These are very handy when budgeting for the next snow season.

Looking at your MAP, you will see October is the month where we prepare for these storms. With the challenges of the last few years not everyone is prepared. This weekend at the HD, I overheard a customer ask for snow shovels only to be told they are sold out. Trying to find ice melt was just as challenging. The weather is nice today, but we know that our snowiest months are still ahead of us. Great time to check your supplies, order that pallet of ice melt even if it is back ordered, and be ready for our next little storm.

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Happy New Year!

Welcome to the new year, we are going to start off with a quick review of your Managers Action Plan. Everyone should have received the 2022 updated MAP in their December year end package. (New clients - we will go over the process offline)

As we start January there are numerous administrative tasks that you need to confirm are completed. Specifically, the property insurance, as it often renews at the beginning of each year. Another key area is the changes to any local, state and Federal laws that may have changed. If you missed the zoom meeting on this issue, please let me know and we can schedule a 1 on 1.

There is a newly expanded section in your MAP focused on Risk Management and Loss Prevention. The first item listed is the property insurance as it is the #1 tool, we use to limit our risk. Additionally, the work orders that support RM/LP are listed as well. For example, changing the batteries in all the smoke detectors and carbon monoxide detectors. Exterior inspections of sidewalks, drainage and driveways need completed as we have finally received some snow recently. 

The MAP also includes a new section on accounting and budgeting. Individual investors with single family homes should focus on renewals or new tenants so you can project the revenues the project will produce this year. Larger residential apartment owners, as well as office building owners, should post the entire budget your property management software. This is also a great time to wrap up any carry over billing or receivable issues from last year. 

We will break down each section of your MAP as we go forward. As the CEO of your investment portfolio, it is time to put your plans into action!

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November Notes

November brings annual meetings for our investors holding single family homes. I cannot stress enough the importance of these meetings to every owner. Board members are elected, annual reports are discussed and the current level of assessments and fees are often key subjects.

Unfortunately, in my prior experiences managing HOA’s, these meetings are not prioritized by very many owners. I have seen Boards struggle to get enough members of the community involved and as a result little to no productive actions can be taken. As a reminder, very often proxy’s can be chosen by eligible owners to make their voice heard. Even the best boards, with the best intentions can fall short if they are unable to get the required number of votes. The quest for Quorum at these annual meetings is critical for the smooth operation of your association. Find a way to get involved and support your associations good governance!

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Quarter End!

That’s right, October arrives in the morning. Keeping our focus on the fall check list today’s subject is sprinklers. On the September monthly check list we scheduled the annual aeration and sprinkler blow out. With October’s arrival make sure to follow up and get this critical task completed. 

Depending upon the type and size of the property you have, the exterior landscape sprinkler system can be a monster. It makes sense to fix any broken or damaged sprinkler heads at this time. If deferring this maintenance, be sure to document the location with photographs. The little flags that are placed to mark the location will be long gone by next spring. 

The back flow preventers are some of the most expensive parts of your system. In commercial settings great lengths are taken to lock these down to prevent theft. In residential it is more about getting the winterization right. Turning off the water to the exterior systems is the top priority. A great opportunity to change your HVAC filter and inspect the sub basement areas, especially for rentals. 

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First day of Fall

The first item on the Asset managers Fall inspection list is Drainage. Poor drainage function, anywhere from the roof top to the storm drain, can cause serious damage. The RISK that water can create multiplies substantially when the weather turns and the ice begins to form.

 A complete walk of the building exterior where every down spout is visually inspected is the best approach. You will be able to identify any areas where water is not draining properly. Be prepared for mud! As always, take pictures, have a site map and mark the areas where follow up is needed. Take this opportunity to look around at an area of the property you seldom see. Out of site and out of mind applies to more than just down spouts!

Parking Areas: Most buildings push the water out away from the foundation and into the parking areas. Following the flow path ensure that no landscaping concerns are being created. The water may be gone but if all of your mulch is in the parking lot, then there is a problem. Check the storm drains, grates and other hard structures for condition and function. 

Snow Removal: While in the parking area review your snow removal plan. Change signage if needed to designate areas now reserved for snow removal. These areas should be away from high traffic areas and when possible in the direct sunlight. Select your site carefully so that the run off continues to flow away from the building, the parking areas and sidewalks.

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Fall Inspections

Update: Letters with the date and time of site inspections have been sent out to all parties. Hopefully, we will be able to get the access needed to fully determine the needs and conditions of each location. Interior photos will be strictly limited to damaged areas or needed repairs. Reports to follow with third quarter reports in Mid October.