Stabilization (SOW C3.4.1 Property Stabilization)
Beginning with the day of Custody, Colliers has 21 days to stabilize the asset. The following are the stabilization activities to be completed within twenty-one (21) calendar days following the Assignment Date (unless designated as a 7-Day Asset):
All invoicing, for any work completed on any asset, must always provide both the before and the after photos of any work they are billing for in order to receive payment.
Inspect the Property. (Usually on day of Custody)
Determine the occupancy status of the Property. If occupied, utilize prudent efforts to access the interior for interior inspection and exterior of the Property. The USMS representative on site should take the lead on working with unknown occupants. It is the responsibility of the USMS to decide whether an occupant will be offered an occupancy agreement. This may not happen at Custody. Obtain occupant contact information if possible. Obtain copies of keys if possible.
Secure and preserve the Property.
If unoccupied, rekey all exterior doors and install a lockbox.
Priority Conditions should be determined at Custody. Priority Conditions:
Safety issues, hazardous items, security and liability issues. (Examples: broken handrails, broken windows or doors, uncovered swimming pools, dangling electrical lines, open sewer systems, water penetration, and plumbing leaks).
Existence of Personally Identifiable Information (“PII”) and Sensitive Information (“SI”) (Examples: IRS tax returns, personal records, financial records, social security numbers, tax ID data, computer electronic devices and other electronic hardware, etc.).
Prevent Freezing. During winter, if an asset has plumbing and is in an area subject to freezing, take immediate steps to ensure asset does not freeze. (Make sure electric, gas, oil service is in order and heat is in working order and turned on. Heat should be set to 65F.)
Prevent flood damage. If asset has a sump pump, make sure that electricity is on and the sump pump is in working order.
Immediately initiate corrective actions as necessary to remedy all Priority Conditions (including compliance with handling of PII/SI. Provide the before and after photos.
Place emergency contact signage in a prominent visual location on improved property, preferably in a front facing window. Place sign-in sheet in a prominent visual location.
Identify all utility accounts and convert utility billings into the USMS name. Water is to be turned on to the curb. Electric service is to be turned on to the asset. Oil and gas services to be turned on as needed for heat. (A/C should be set at 65F, heat should be set to 74F.)
Identify all utility accounts and convert utility billings into the USMS name.
Review all existing leases. Take assignment of any revenue stream generated by the Property and secure possession of any security deposits or any other amounts held in escrow for the benefit of the Property by third parties. Notify all sources of revenue (tenants, vendors, etc.) regarding payment requirements, change in payee’s name and payment address and establish current rent roll including summary of outstanding delinquencies.
Identify any parties currently engaged in providing recurring maintenance or other professional services for the Properties. Determine whether retention of their services is in the best interests of the USMS and notify all parties of that determination.
Photograph and secure or dispose of any equipment, supplies and other abandoned personal property in compliance with applicable laws and upon prior approval from and coordination with the USMS.
Remove and dispose of all trash, unsightly leaves and limbs on the Property after having complied with local ordinances regarding abandoned personal property.
If unoccupied, clean interior to broom swept appearance.
If within the winterization period, winterize the Property, including plumbing and fire sprinkler systems.
Prepare and submit for approval, an individual asset operating budget on each Assigned Asset in a manner consistent with the USMS prescribed format.
Obtain copies of all occupancy and use permits.
Upload the Assigned Asset data with images and all pertinent documents necessary to set up the electronic Assets Marketing/Management file.
Complete an inspection report, including interior and exterior photographs that highlight any work done at Custody, any items that require attention and that show the entirety of the asset in sufficient detail.
7-Day Assets: When the USMS desires stabilization activities for certain Assigned Assets to be performed on an expedited basis, the USMS will assign the asset as a 7-Day Asset.
For all 7-Day Assets, tasks to be performed and completed:
Stabilization Tasks one (1) through seven (7) and Task eighteen (18) within seven (7) calendar days from receipt of the Custody Order(s). Until complete, updates shall be given on: (i) status of inspections (ii) identification of Priority Conditions and (iii) estimated completion date for corrective actions.
Stabilization Tasks nine (9) through seventeen (17) within twenty-one (21) calendar days.
Stabilization Report
Stabilization Date