We covered the following:
Dave Teach Property Management Due Diligence

  • Creating a file audit for everyone that’s on the property. Every pet,
  • How to verify the security deposits (you are responsible for paying the security deposits for future move outs)
  • Inspecting each apartment for water damage and CAPX.
  • 5 Top Mistakes

1. You are rushed
2. Do not do a complete file audit
3. They do not go into every apartment
4. They do not do inventory of what is on the property and more importantly what is staying, and what can be negotiated
5. Inaccurate market survey. (How to do a good one)

* Beware of the owner moving appliances after the due diligence is done! (Create a CAPX sheet for each apartment)

  • 90 days of work orders survey compared to the vendor files
  • The 90 days of people moving in and out. Find out what problems with the complex is driving them out.

All of the highlighted items on the due diligence checklist will indicate what has to be done to the property. The due diligence period is the only time that the owner is going to allow you on the property. Is this the right property that you want to buy? Determine if this is the staff that you want to keep. Determine if the current property manager is sacrificing occupancy for collections. How to analyze a work order file.

  • Create two binders. An operational binder that contains the file audit, utilities, and operational information. The other one is a unit inspection binder for each unit and common area.
  • Keys. The importance of keys in a complex. This information will save you a lot of money.
  • What to do if the property is on town sewerage.
  • Bed bug precautions, the bed bug addendum.
  • We go over the key items on the highlighted due diligence checklist.
  • Check for fair housing violations because they carry through.
  • Get the pool warrantee and equipment up to date.
  • Get the pest inspection reports, especially for bed bugs.
  • Pay attention to pets.
  • Call the utilities company to see if there are going to be any rate changes for your budget.
  • Check to see if subcontractors have been paid. Are there any liens?
  • Which contracts you can get out of.
  • How to do the due diligence on a 4-unit.
  • And finally the bed bug addendum

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