Challenge

Oakmore’s consulting group was retained to review management records for a 30 unit portfolio of westside apartment buildings, and render an opinion as to the effectiveness of the then current management. We were asked to determine whether the lease rates were at market and if the expenses were reasonable. We reviewed all leases, unit turnover/vacancy factors, and comparatively analyzed expenses in relation to similar properties. This was particularly challenging as most of the bookkeeping was done in handwritten general ledgers. As a result, we had to reconstruct the operating data for multiple years. Moreover, we reviewed management agreements and accounting practices to determine appropriateness. Oakmore was able to tap into its network of management professionals to discuss and verify its findings. Due to our deep management experience, we were able to identify several unusual items that that had a direct impact on Net Operating Income. Specifically, we were able to point to areas where income should have been higher than actually was, enabling our client to recover that lost revenue.