🏢 Property Risk Assessment Report

How quickly and effectively maintenance issues are resolved

Findings

• 17 open maintenance tickets
• 2 CRITICAL safety/habitability tickets open: Ceiling in bathroom is leaking!! at 142 Oak Ridge ; Mold at 2750 Westheimer Road - 32

Recommendations

• URGENT: Resolve water, mold, and HVAC issues within 48 hours. These are the highest-liability items for P&C claims.

Open water, leak, and mold tickets — #1 P&C claim driver

Findings

• 1 active MOLD report(s) — highest liability exposure for Texas multifamily
• 2 water/plumbing issue(s) — leading cause of mold and structural damage

Recommendations

• CRITICAL: Mold remediation must be documented and completed by licensed contractor. Texas has strict mold liability — unresolved mold claims average $30K-$150K.
• Implement 24-hour response SLA for all water-related tickets. Water damage accounts for ~30% of all commercial property insurance claims.

Tenant insurance coverage for subrogation and liability transfer

Findings

• 0% renters insurance compliance — 0 tenants have no coverage

Recommendations

• CRITICAL: Require renters insurance as lease condition. Properties with mandatory renters insurance see 15-25% lower liability claims and improved subrogation recovery for carriers.
• Buildium supports automated insurance tracking via MSI integration. Enable it to track compliance automatically.

Vacancy rates and tenant retention

Findings

• 17% vacancy rate (9 vacant) — elevated vacancy increases vandalism and liability risk
• 4 active rental application(s) in pipeline
• 9 vacant units not yet listed — lost revenue opportunity

Recommendations

• Reduce vacancy below 10%. Vacant units are 3x more likely to have break-ins, vandalism, and undetected water damage.
• List all 9 vacant units immediately. Each vacant unlisted unit costs ~$1,000/month in lost rent plus increases property risk.

Outstanding balance aging and eviction proceedings

Findings

• 85% delinquency rate (39 of 46 tenants) — very high
• 2 eviction proceeding(s) — active liability events
• 9 tenant(s) owe >$1,000 (total: $14,687)
• Total portfolio outstanding: $37,214.72

Recommendations

• Evictions create significant liability exposure (wrongful eviction claims, property damage during moveout, Fair Housing risk). Document all communications.
• Implement automated payment reminders at 3, 7, and 14 days past due. Properties with automated collection workflows reduce bad debt by 30-40%.

Texas Property Code §92 compliance — safety and livability

Findings

• HVAC: 1 open issue(s) — AC Unit not functional at 142 Oak Ridge
• ELECTRICAL: 1 open issue(s) — Breaker keeps flipping at 2750 Westheime
• STRUCTURAL: 3 open issue(s) — Dripping from the ceiling never stopped ; Ceiling in bathroom is leaking!! at 142 ; ceiling fan at 2750 Westheimer Road - 24
• SECURITY: 2 open issue(s) — Need 2 locks replaced. One for the bathr; Add lock to laundry room at 2750 Westhei
• PEST: 2 open issue(s) — Pest Control, roaches going crazy at 142; Facuet in bathtub and rodents at 142 Oak

Recommendations

• Texas Property Code §92.052 requires landlords to make diligent efforts to repair conditions affecting health/safety. 9 open habitability issues need priority attention.
• Pest issues (roaches, rodents) are habitability violations under Texas law and can lead to lease termination claims and health dept complaints.
• URGENT: No hot water and no AC are emergency habitability items in Texas. Failure to repair within reasonable time can result in tenant remedies including rent withholding.

Income, expenses, and NOI from Buildium accounting

Findings

• Income Statement data available from Buildium — P&L tracking active
• Property Statement data available — per-property financials tracked
• Accounts Receivable Summary available — collection performance tracked