Memorandum: Deterioration of Property – River Oaks Condominium, Essay Example

Date: Jan 28, 2021

To: Steven Davis, CEO of XYZ Property Management, LLC

From: XYZ, Property Manager ^xy

Subject: Deterioration of Property – River Oaks Condominium

The memo serves to notify you of my finding of the competed recent investigation. My investigating will further describe the deterioration of the property situation at River Oaks Condominium. The outcome of my meeting with the River Oaks president, board members, and investors went successfully. After my conversation with all parties, they were not mutually exclusive and have agreed to stay with River Oaks property Management, LLC if the situation is rectified. This memo will describe my finding from the investigation in great detail with the symptoms, the long-term effects, and the cause of the state of affairs thoroughly.

Symptoms of the Problem

The symptoms of River Oaks Condominium’s problems are made highly visible due to the property’s deterioration. The property has become an eyesore due to a list of symptoms that impaired the property’s full potential. The problems are relying on the current maintenance staff personal and maintenance supervisor in charge of the team. The team is late to work at least an hour or two, and the situation has never been prioritized. The problem is a repeat, whereby the team is allowed to leave at the end of the shift when they please. The practice of parting for 3 to 4 hours a day for supplies is an excuse to abuse the time clock. The maintenance team has taken up work on the side for owners while on the clock. It is abuse like I have never seen before.

The symptoms of such abuse have left River Oaks Condominium in a state of deterioration. The pool and spa are not adequately maintained. The gym is with equipment that has not been sanitized or wipe per association rules. The tennis court has complied with trash and debris. The grounds are not kept clean and power washed. Many incidents involve tenants complaining about trash not being picked up, which has caused raccoons and rats to cause an infestation. The symptoms at River Oaks have the tenant and investors marking the situation as a dire emergency.

Effects of the Problem Section

The effects of River Oaks’ problems have left a detrimental impact that has angered the community. When I spoke with tenants on some of the symptoms they experienced at River Oaks, their response was negative; furthermore, they expressed that they are deeply concerned for their safety and their kid’s safety. The problem has affected them to a point where they will not be renewing their leases. In some cases, tenants will pay the early termination fee and cancel the lease.  It concerns me and brings me to my next point that finding new willing tenants to sign a River Oaks lease will be a task. This is because of the lower online reviews that warn future tenants to be aware of the deterioration problems facing River Oaks. When discussing the matters with landlords who have invested their savings into the River Oaks project and investors interested in getting a good return on their investment, the same concerns and fears arise. Landlords are having a more challenging than standard time selling and exiting their condo purchase. Investors are facing a harder time finding the attracting the right tenant to fill their vacancy. They have expressed their attempt to lower the rent price to be compatible with other rental communities and offer 1st month free for tenants who sign a yearly lease. Investors have expressed not paying their HOA dues until the conditions improve at River Oaks. If investors and landlords stop paying the HOA dues, then River Oaks will lose revenue at a rate of 55 percent. The organization must solve the long-lasting effect of the problem.

Causes of the Problem

River Oaks’ problems are an essential task in which I have identified the leading causes of creating a direful state of affairs. After careful review of the managers and supervisors, I have determined a correlation between the maintenance supervisor and the employees. It was in my finding that three of the employees are relative to the supervisor. It has caused favoritism, which allowed said employees to arrive late and leave early. These three individuals were allowed longer break times and never disciplined for their lack of work. Ultimately, the situation has caused a shorter maintenance staff to perform all maintenance issues. In the long run, the other two employees, after picking up the slack, had quit, and maintenance issues started to accumulate. The property manager never addressed problems with the maintenance supervisor. She was in the middle of a divorce and was absent most of the time. Therefore, she caused the problems never to reach the board to conduct a meeting and try to solve the issues. Furthermore, investors had already stopped paying HOA dues, which led the revenue to drop. It caused payment for the sanitation department to go unpaid, which caused trash pick-up to cease.  My investigation has led to at least three possible causes leading to River Oaks Condominiums’ downward curve.

Conclusion

River Oaks Condominium’s rapid deterioration of the property primarily occurred under the directions of the Maintenance Supervisor’s complete failure to supervise the maintenance department. Under his term, the decline of the property had escalated. The byproduct of the supervisor’s actions caused landlords to sell their condominiums and investors to experience a decrease in their return on their investment. River Oaks Condominium is losing 55 percent of its HOA revenue because the maintenance supervisor failed to supervise. Moreover, there is plenty of resources at my disposal to remedy the oversight. Once the problem is eradicated, River Oaks will receive recognition like never before. In the days to come, I will provide further research and the proper solutions to solving the problems diligently.