Pool and Pool Systems is the topic of this last post as part of our series on top 8 things to inspect before buying apartments. Here is the list:
- Inspect every unit
- Walk all drive and parkways
- Inspect all exteriors
- Inspect all mechanical facilities
- Leasing and business offices
- Common areas
- Maintenance shops
- Pool and pool systems
Pool and Pool systems: One of the draws of a new resident to a property is the pool and pool area. It is usually next to the clubhouse or leasing office and thus is a very visible part of the resident’s experience. The pool can be a place for residents to play with their kids, have gatherings with friends or just soak up the sun and relax. There are many different styles, shapes, and features that a pool can have, but for a due diligence these are all treated the same. It is our recommendation that on a due diligence walk through, there should be a member of your team that has a CPO, or a potential pool company, perform the inspection of the pool and pool systems.
Example during due diligence: During a walk through in Houston on a large property, my team received an old version of the of the layout of the property. We noticed that there were three pools on the layout, but there was only one pool currently on the property. The other two pools had been filled in with dirt and one was covered with a playland for children to play on. This was not a major concern, other than there were older property layouts displayed for residents.
We were on site at the property for 3 days to complete the full inspection. We noticed that every morning, the lead maintenance technician was filling up the pool. Filling up the pool every day could have several causes: the heat of the day reducing the water in the pool, the pool had kids playing in it and they splashed out water, or there could be a leak in the pool. The conclusion we reached was there was a major leak in the pool and pool system. In order to fix the leak, the pool would have to be shut down and major repairs would have to take place. We would need to drain the pool and then dig up the lines to the filter system.
The decision for the purchasing investors was at the end of summer they would repair the pool and they would ask the sellers to offer a credit for the pool repair. The repair of the pool and pool system took three weeks and costs about $35,000. There were some positive things that happened as part of the pool repair. The new owners got to choose the new color of the pool. They changed it from a light gray to a light blue. We also changed the landscaping around the pool because of the digging of the lines. The change in landscaping was a change the residents really liked.