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Property Acquisition Due Diligence Checklist
Legal and Compliance
Review current zoning compliances and potential rezoning risks or opportunities
Conduct a title search and obtain title insurance
Check for any existing liens, easements, covenants, or other legal restrictions
Financial Assessment
Audit previous years' financial statements and tax returns
Review current leases and assess rental income stability
Analyze local market conditions including supply, demand, and rental rates
Physical Inspection
Hire a professional inspector to assess structural integrity and building systems
Evaluate the condition of the roof, foundation, and building envelope
Check for environmental hazards like asbestos, mold, or soil contamination
Operational Review
Assess the current property management company and any staffing contracts
Review utility and service contracts for potential cost-saving opportunities
Evaluate the need for immediate repairs or maintenance and the associated costs
Tenant Relations
Review tenant leases for terms, conditions, and any upcoming expirations
Understand the tenant mix and any exclusive rights or restrictions
Gather feedback from current tenants about their satisfaction and needs
Market Analysis
Research comparable properties in the area to assess market positioning
Analyze demographic and economic data relevant to the property's market
Identify trends that may affect property value or rental demand
