One of the greatest challenges facing a property management company today is the need to control and reduce overhead costs. A proven way to control these costs can be found in proactive management and continual assessment of risk within a multi-family development. This assessment can reduce insurance costs as well as management’s risk exposure.
Minimizing the risk at a community can not only reduce the number of claims, but may prevent a more significant event from occurring. A purposeful, planned approach to an ongoing community review process will assist the management company and insurer should any case actually reach the courtroom.
Ultimately, it is the reduction in the exposure of residents to possible risk that provides one of the most valuable, albeit intangible, outcomes of the Risk Management process. This outcome is the limiting or elimination of the overhead and legal costs of potential future claims that could have been experienced by the management company due to unknown risks.
The Draper Solution
What Draper & Associates offers is a community inspection protocol that dramatically reduces management’s exposure to risk and the associated damage and time impact.
In support of public housing program management engagements and property management companies, Draper develops and implements a customized asset risk control and inspection process. This process supports management by reviewing building requirements as established by the Department of Housing and Urban Development (HUD), as well as local, state, and national codes.
The review and inspection of the community further supports management through the creation of a customized inventory of crucial components that focuses on the identification of risk factors within the property. As mentioned previously, this inventory template (matrix) is comprised of building codes, but also includes non-regulatory factors as well. These components include management contract responsibilities, and state/local building system inspections. This template is then used by the Draper & Associates professionals who conduct a thorough inspection of the community.
Draper’s proactive property inspection process delivers an impartial appraisal in order to reduce risk exposure within the community. In turn, the implemented Risk Management procedure will support a condition that better achieves government standards and community requirements as well as improve safety conditions that will ultimately be recognized by the insurer. Beyond a cost control and standards requirements function, the Draper inspection process works to ensure a safe environment for all residents who are under the indirect care and supervision of the management company.
Risk Management Engagements