Real Estate Capital Improvements Planning Checklist

Systematic capital improvement planning protects property value and prevents deferred maintenance crises. This annual planning checklist guides property managers and owners through capital needs assessment, reserve adequacy, and project prioritization.

  • Industry: Real Estate
  • Frequency: Annual
  • Estimated Time: 45-60 minutes
  • Role: Property Manager / Asset Manager
  • Total Items: 31
  • Compliance: GAAP ASC 360 - Property Plant and Equipment Capitalization Standards, FHA/Fannie Mae Capital Reserve Requirements, Local Building Code - Permit Requirements for Alterations, International Property Maintenance Code (IPMC)

Property Condition Assessment

Assess current property condition.

  • Property Condition Assessment (PCA) or reserve study completed within 3 years?
  • All deferred maintenance items from prior year identified and assessed?
  • Major building component inventory with age and expected remaining life current?
  • Roof condition assessed with repair or replacement priority identified?
  • MEP systems (HVAC, plumbing, electrical) condition and replacement forecast current?

Reserve Fund Adequacy

Assess reserve fund status.

  • Reserve fund balance determined and compared to required reserve?
  • Funded percentage above 70% or multi-year funding plan in place?
  • Annual reserve contributions adequate per reserve study recommendations?
  • Special assessment required or being planned for underfunded major projects?
  • Reserve funds invested per investment policy with appropriate liquidity?

Project Prioritization

Prioritize capital projects.

  • Life safety and code compliance projects identified as top priority?
  • Structural integrity projects (foundation, roof, waterproofing) prioritized?
  • Legally required improvements (ADA, fire code) scheduled within required timeline?
  • Value-add improvements evaluated for ROI and market positioning?
  • Energy efficiency improvements evaluated for utility cost savings and incentives?

Contractor Selection and Permitting

Plan contractor and permit requirements.

  • Competitive bid process planned for major projects (typically >$5,000)?
  • Contractor insurance (GL, workers comp) verification process in place?
  • Building permit requirements assessed for all planned major work?
  • Licensed contractors required per state law verified?
  • Project timeline developed to minimize tenant disruption?

Accounting and Capitalization

Verify accounting treatment planning.

  • Capitalization vs. expense determination made for each project per GAAP ASC 360?
  • Depreciation schedules updated for new capitalized assets?
  • Tenant improvement allowances (TIAs) tracked and amortized per lease terms?
  • Insurance coverage adequate for planned replacement value?
  • Historic tax credits, energy tax credits, or incentives evaluated?

Documentation and Reporting

Document capital plan.

  • Capital budget prepared and submitted for approval?
  • Project tracking system in place for budget vs. actual?
  • Capital project status reported to owners or board quarterly?
  • Historical capital expenditure records maintained per asset?
  • 5-year capital improvement forecast prepared?
  • Annual capital improvement plan document prepared and distributed?

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Why Use This Real Estate Capital Improvements Planning Checklist?

This real estate capital improvements planning checklist helps real estate teams maintain compliance and operational excellence. Designed for property manager / asset manager professionals, this checklist covers 31 critical inspection points across 6 sections. Recommended frequency: annual.

Ensures compliance with GAAP ASC 360 - Property Plant and Equipment Capitalization Standards, FHA/Fannie Mae Capital Reserve Requirements, Local Building Code - Permit Requirements for Alterations, International Property Maintenance Code (IPMC). Regulatory-aligned for audit readiness and inspection documentation.

Frequently Asked Questions

What does the Real Estate Capital Improvements Planning Checklist cover?

This checklist covers 31 inspection items across 6 sections: Property Condition Assessment, Reserve Fund Adequacy, Project Prioritization, Contractor Selection and Permitting, Accounting and Capitalization, Documentation and Reporting. It is designed for real estate operations and compliance.

How often should this checklist be completed?

This checklist should be completed annual. Each completion takes approximately 45-60 minutes.

Who should use this Real Estate Capital Improvements Planning Checklist?

This checklist is designed for Property Manager / Asset Manager professionals in the real estate industry. It can be used for self-assessments, team audits, and regulatory compliance documentation.

Can I download this checklist as a PDF?

Yes, this checklist is available as a free PDF download. You can also use it digitally in the POPProbe mobile app for real-time data capture, photo documentation, and automatic reporting.

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