Vermont Housing & Conservation Board. Beyond Monitoring Performance: Creating a “Watchlist” September 24, 2010. Due Diligence Checklist. The following are key actions in an Asset Management Plan for a property requiring Executive Team and Board monitoring.
The following are key actions in an Asset Management Plan for a property requiring Executive Team and Board monitoring.
It is a list of properties that are under scrutiny based on their performance in one or more identifiable indicators
Different stakeholders are likely to focus on different indicators
Being on a watch list can trigger events or consequences that pose difficulties for a property or an organizationWhat is a Watch List?
What are likely to be on these stakeholders’ watchlists?
Make the criteria SMART their performance in one or more identifiable indicators
First, identify the key indicators for your portfolio
Secondly, establish the criteria you will use to evaluate each indicator
Lastly, decide on a ranking systemThe Asset Manager’s Watch List
INDICATOR their performance in one or more identifiable indicators : May be one discrete indicator, such as vacancies,
a combination of one or more (rent loss which equals vacancies plus uncollected rent)
CRITERIA: Rent Loss
0 = > 7%
1 = 5% - 7%
2 = 3% - 4.99%
3 = 1% - 2.99%
4 = < 1%
0 Troubled, Watch List
1 Watch List
2 Watch List
4 PerformingWatch List Example
Your materials include their performance in one or more identifiable indicators
A sample of a non-profit asset manager’s “portfolio status report” of a portfolio that is a combination of owner/managed and third-party managed properties
A sample of an intermediary’s quarterly portfolio summary
Both “rank” or “rate” properties
Critique these report as follows:
Evaluate the indicators
What do you like
Evaluate the criteria
Are they SMART?
What would you change?
How much of the portfolio is ranked
What indicators are weakest?Evaluating a Watch List