• Other income including community
fees should be itemized.
occupancy data (resident days by type
of care, including itemization of second
occupant days):
• Medicaid and/or SSI resident days
should be itemized within the appro-
priate type of care.
expenses by department with itemiza-
tion of salaries, payroll taxes, benefits,
and supplies. Management fees, bad
debts, food, utilities, property taxes,
property insurance, and liability insur-
ance should also be itemized.
staffing data, including average salary
rates and full-time equivalent staffing
by position.
rent roll data should be detailed by the
type of care, the number and style of
units offered, occupancy, and revenue
collected. As units turnover or rents
change, the rent roll should be up-
dated. The rent roll should correlate to
the financial statements for the current
month and to the marketing materials
given to prospective residents. At a mini-
mum, the rent roll should capture the
following data for each unit:
• Room number;
• Type of room (small studio, studio deluxe, one bedroom, etc.);
• Size of room (square feet);
• Asking and actual base rent including
an indication if the rent is Medicaid or
SSI or other subsidy; actual amount
would be 0 if the unit were vacant;
• Asking and actual level of care fees;
• Asking and actual second occupant
rent.
A list of competitive properties and any recently conducted market surveys. This information will help the appraiser identify
and analyze the market for the subject.
Additional information the appraiser
needs relates to describing the real
estate:
• Architectural and mechanical drawings
provided in an electronic format such
as a PDF, or reduced to a standard size
paper;
• Site plan that shows the boundaries of
the parcel of land and the outline of the
building as it sits on the site;
• Legal description of the real estate being appraised;
• Change in ownership or sale history of
the property for the last three years; any
sale listing information on the property
and/or any sale contract pending; any
recent purchase agreements;
• Any lease contracts on the real estate
between the property owner and the
operator
Whether you’re a buyer or seller, remember that the appraiser will likely
perceive higher risk associated with a
property that does not have good data
readily available—and higher risk translates to lower value.
Operators that allow transparency of
their financials and operating information help reduce these perceived risks
and help enhance their values.
on-site expectations
The community’s management team can
expect the appraiser to perform a physical inspection of the building, review
building plans, and spend time discussing operational and competitive market
conditions with appropriate members of
management.
