Acquisition Due Diligence Checklist

1. Capital Improvements

• Schedule and Summary of Capital Improvements

• Copies of Contracts/Warranties for Major Work

• Replacement Schedule of Water Heaters, HVAC, Appliances, etc.

• Summary / Bids of Ongoing / Planned Capital Projects

2. Financial Information

• T12 & Prior 2 Years (monthly)

• Current Years budget

• Rent Roll w/Leases Charges (pdf and excel)

• Unit Statistics Report

• Unit Amenities Report

• Availability Report

• Rentable Items Directory (list of garages, storage, WD)

• Lease Expiration Report (monthly for next 12 months)

• Aged Receivables and Prepaid Report

• Concession Burn-off Report

• Summary of Current & Prior Concessions that impact current Rent Roll

• Summary of Other Income Charges

• Security Deposit Activity Report

• T12 Trade-outs Report (New Leases & Renewals)

• Historical Pricing Reports

• Copies of Commercial Leases & Amendments

• Lease Abstracts

• 3rd Party Management agreement

• Brokerage agreement

• Commercial Rent Roll

• Current & Prior 2 years Real Estate Tax Statement

• Current & Prior 2 years Personal Property Tax Statement

• Special Assessments

• Ongoing Appeals, Correspondence with Local Tax Authorities, Assessors, etc.

3. Operations

• Electronic Resident Leases & Lease Documents

• Sample Standard Residential Lease Agreement & Lease Addendums

• Pet Policy

• Rental Application

• Qualification Standards for Prospective Residents

• Lawsuits (Details on Payouts/Pending or threatened cases)

• Summary of Evictions underway & past 12 months

• Complete set of Loan Documents (if assumption)

• Current Mortgage Statement (if assumption)

• Site Plans with Building Numbers

• Digital Photos, videos, and Logos

• Floor Plans

• Lease Brochure

• Most Recent Market Survey of Rental Competition

• List of Social Media Accounts (note if transferable or not)

• YTD & Prior 2 years maintenance Logs

• O&M Manuals (moisture, Asbestos, Lead Paint, PCB, Radon, etc)

• Employee List (position, Salary/pay rate, avg hours/week, hire date)

• Benefits Summary

• Personal Property Inventory

• If Vehicle at property, copy of Title & Registration

• Inventory of Washer/Dryers

• Demographics Report

• Ground Lease and Accompanying documents

• Covenants, Conditions & Restrictions / HOA agreements

• YTD & Prior 2 years Incident Reports

• Resident Surveys

• Review Ratings (Google, Yelp, etc.)

4. Permits/Licenses/Warranties

• Business Licenses/permits if applicable

• Certificates of Occupancy or Use and Occupancy Permits

• Certificates of Lead-Based Paint Compliance

• Elevator Permit

• Pool/Spa Permits

• Inspection Reports (City Agency inspections)

• Life-Safety Inspection (Fire Alarm, Sprinkler, Annual Fire Inspection)

• Government (city, county, state) Notices/Reports/Violations w/Remedy

• Original and Recent Buildings Permits

• Site Plan Approval

• Valid Warranties for Roof, Window, Water Heaters, HVAC, Appliances

• Termite Bonds

5. Existing Third Party Reports

• ADA Reports or Plans to Meet Compliance Requirements

• Engineering Reports

• Environmental Phase I Report

• Environmental Phase II Report

• All other Existing Environment & Compliance Reports

• Geotechnical / Topographical Drainage Reports

• Termite Inspection Reports

• Seismic

6. Title and Zoning Information

• Existing Owners Policy with all exhibits

• Existing Lenders Policy (if assumption)

• Zoning reports (PZR, etc)

• Development Restrictions (Height, Set-Backs, Density, Parking, Signage, etc)

• Easements

• Variance Approval Letters

7. Utilities

• Summary of utility suppliers and bill-back programs

• 12 month of all utility Bills (WS, Gas, Electric, Waste, Cable, Internet, Phone, etc)

• 12 months of utility billing summary reports reflecting resident charges for recovery program

• Energy Supply agreements for "landlord-paid" electricity or natural gas commodities

• Identify current sub-metering system and install dates

• Current sub-metering system meter health report

• Access to perform one-time read test

• Current Sub-meter system service or maintenance agreements

• Meter Change-Out Records

8. Service Contracts & Vendors

• All service & income generating contracts

• List of Current Vendors and Contact Info

• List of Recurring Services not contracted for

9. Survey & Building Plans

• Existing ALTA Survey

• Architectural Plan, As-Builts or Approved Drawings & Specifications

• Plans for any New Improvements

10. Insurance

• Loss Run History

• Flood Insurance Certificate

• Elevation Certificates