The KEY word is INVOLVED.  Don't just ask questions. Before a strategic turnaround plan can be formulated and implemented, you must get to the heart of the problem(s)

Defining the problem(s) prior to developing and implementing the plan requires excellent problem solving skills.  Too often, managers "react" and "treat the symptoms" rather than determining the true source of the problem.  Take your time.  Don't jump to hasty conclusions

ACCOUNTING.  Begin your audit by reviewing the current and prior year financial statements.  Look for positive and negative trends in revenues and expenses.  Investigate significant variances from the budget.  Discuss the financial situation with on-site personnel.  They should have a good "feel" for the business. 

If residents are billed for natural gas, electric, water, sewer and /or trash removal services, ensure that the customer statements reflect the current rates for these services.  Investigate statements that reflect unusually low consumption.  It may be time to replace slow running meters.  Document trends in net utility costs.  "Are we really using that much gas, electric and water to operate the common facilities?"

Review controllable expenses such as repairs and maintenance, operating supplies, payroll and office related expenses.  "Are we shopping for the best prices? Are we buying in bulk whenever possible? Can we cutback on office expenses? Is our staffing in line with the task at hand?"

OFFICE ADMINISTRATION.  Spend a day or two in the property office.  Observe and participate in office operations.  Ask questions.  Examine resident files.  Are they well organized? Listen to employees answer the telephone.  What "message" is conveyed to vendors, customers and prospective residents? Can employees listen and solve problems? How are prospective resident inquiries handled?

Review office policies and procedures.  Are the policies effective? Are they clearly understood and adhered to? Do employees know and understand the laws affecting the business?

Discuss delinquent accounts receivable follow-up procedures.  Who is knocking on doors? Have all the legal notices been properly completed and served on the appropriate parties? Has the attorney been contacted? Which accounts are slated for eviction?

Quite often, when a property is performing poorly, delinquencies have increased.  Talk with the customers about their personal financial situation.  Can they "catch up" within a reasonable time period? Will they sign a promissory note for the balance due? Don't stop here.  Examine prospective resident screening procedures.  You may learn that delinquencies have increased because the manager has been approving new residents with marginal credit and total household income below acceptable levels.  If this is the case, implement higher income requirements for prospective residents. 

RESIDENT RELATIONS.  Successful businesses develop and maintain excellent customer relations.  Therefore, it is imperative that you meet with and listen to your residents.  Sometimes, it will be necessary to look past the, "It's not the way it used to be.  When I moved in, the rent was only $X per month and now it's $XX. " Possibly, the resident is saying , "I do not perceive that I am getting value for my rent dollar. "

Conduct an informal survey of your residents.  Ask the customers what they would like to see improved.  After all, they do live in the community.  Meet with the residents homeowners association board.  If deferred maintenance/capital improvements is the issue, commit to a plan of action. 

Publish the plan in the monthly newsletter.  Post it on the community bulletin board.  In many cases, however, the residents just want to be sincerely listened to, treated with respect and given a straight, honest answer. 

If the property is an "all age" or "family" community, learn about the activities offered for the children.  Create a positive environment for the children and teenagers.  Solicit volunteers within the community to help form clubs, after school activities, tutoring programs, and other organized activities.  Start a teen club.  Coach them on how to develop and establish rules of conduct, organize group activities and raise money to fund their efforts.  Allow them to sponsor monthly car washes, dances and movie nights.  Establish a reward system for good grades.  Invest in functions and activities adults and senior citizens. 

PROPERTY MAINTENANCE.  The appearance and condition of the common areas and buildings sends a simple and constant message to prospective and current residents.  "We Care" or "We Don't Care". 

Walk the community with the maintenance supervisor and on-site manager.  Start at the entrance.  Is the signage clean and neat? Look closely at the landscaping.  Are the lawns mowed, edged, watered and fertilized? Are the flowers colorful? Have the weeds been pulled?

Examine the residents homes and homesites.  What is their overall condition and appearance? Are the community guidelines (aka Rules and Regulations) enforced?

Inspect the community clubhouse, restrooms, laundries and swimming pool.  Is everything in order, neat and clean?

Finally, ask the maintenance supervisor to enumerate on the daily, weekly and monthly maintenance priorities.  Listen CLOSELY to the answers.  While cash may be tight, there is no excuse for not being clean. 

SALES AND MARKETING.  Vacant homesites and unoccupied community owned homes for sale represent lost revenue.  Meet with the manager and office staff to determine if they understand basic sales principles.  How do they greet prospects who call for information or stop by the office? Do they get the prospect's name, address and telephone number? Do they determine what the customer is looking for? Do they try to set an appointment? Do they have information sheets that specify the size(s) of homes that can be placed on each vacant homesite? Are fliers available for each home for sale? Is other promotional information about the community available? Is it professional? Is the community map easy to read?

Inspect the community owned homes for sale to determine if they "Ready to Sell".  Are the windows, floors, bathrooms, kitchen, etc.  clean? Do the homes "smell nice"? Is the landscaping maintained? Who inspects the homes on a regular basis to make sure everything is always in order? What do the homes & homesites around the homes for sale look like? Are they well maintained? If you were the prospect, what message are you getting?

Scrutinize the vacant homesites.  Are they clear of debris? Is the grass mowed and are the weeds unkder control? Have the utilities been properly secured? What is the condition and appearance of the adjacent homesites?

Why do people move into your community? Meet with the last 12 - 15 new residents.  Develop a list of specific questions to learn why they chose mobile home living, how they learned about your community, where they work, etc. 

Visit local manufactured home retailers.  Listen to what they have to say about your community.  Determine if sales are strong or slow.  Learn where customers are placing new homes.  Ask dealers if they would be willing to set up a model. 

The competition includes neighboring manufactured home communities, apartments and single family homes.  Personally shop the mobile home communities and apartments that a prospective resident would consider.  For example, if you are an all age community that provides affordable housing for families, visit similar communities and complexes.  Meet the manager, determine the rental rates, marketing incentives and vacancy factor.  PERSONNEL.  Throughout the operational audit, you will be meeting with, talking to and observing the on-site employees.  Assess each person's abilities, talents and most importantly, attitude.  Is the manager capable of leading and directing the staff? Can each team member successfully perform their job duties and responsibilities? Do employees understand what needs to be accomplished? Can they do it well with without constant supervision? Is each employee willing to do "Whatever It Takes" to win?

STRATEGIC PLAN OF ACTION.  When the operational audit is completed, the owner/property manager will have a through understanding of the current situation.  Then, he/she can formulate specific, measurable goals for the property.  Visualize the results of the strategy. 

Let's assume the goals are to increase occupancy, reduce delinquencies and generate positive cash flow.  Transform your vision into easy to understand measurable statements.  For example: