Real Estate Portfolio Review Checklist

Export the trailing-12-month rent roll and P&L from the property management system (AppFolio, Buildium, Yardi). Reconcile against the brokerage trust account ledger and bank statements — discrepancies between PM software and bank reality are the most common reason quarterly numbers don't tie.

Pull active and leased comps from the local MLS and Rentometer or CoStar for each unit type. Note loss-to-lease per unit (market rent minus in-place rent). A loss-to-lease above 8% is the trigger for a renewal pricing strategy in the tenant section.

Compare actuals to budget for taxes, insurance, utilities, R&M, management fee, and turnover costs. Flag any line over 10% variance. Common drift: insurance premiums up YoY, R&M creeping past 1.5% of GPR, utilities not reimbursed under RUBS where the lease allows it.

Compute NOI, levered cash-on-cash, and DSCR per property. DSCR below 1.20 on a stabilized asset is a refinance or disposition flag — surface it for the portfolio recommendation step.

Exterior, common areas, mechanicals, and a sample of units (typically 10-20%). Photograph deferred maintenance and update the capital plan. For pre-1978 properties, confirm lead-based paint disclosures and any disturbed paint conditions are documented per EPA RRP.

Pull the last 12 months of work orders from the PM system. A unit with 3+ HVAC calls or repeat plumbing leaks signals system replacement, not another patch. Tag these for the capital plan rather than the operating budget.

Refresh roof, HVAC, water heater, parking lot, and unit-turn line items with current contractor estimates. Reserves should fund the next 12 months at minimum; flag any property where the capital plan exceeds reserves plus expected cash flow.

Get three contractor bids, confirm permit requirements with the local building department, and identify whether the work triggers tenant relocation or rent abatement. Tie the funding source to either reserves, operating cash flow, or a supplemental loan in the recommendation step.

Capture submarket vacancy, rent growth, absorption, and supply pipeline for each property's submarket. New supply over 5% of inventory in the next 18 months is a leasing-risk flag for the renewal strategy.

Pull recent sale comps via the MLS, CoStar, or a broker BPO. Apply the prevailing cap rate to in-place NOI and cross-check against price per unit and price per door for the submarket. Note current LTV against the most recent loan balance.

For underperformers, model a reposition scenario: unit renovation cost, post-reno rent premium, downtime, and stabilized yield-on-cost. A yield-on-cost more than 150 bps above the going-in cap is the threshold to advance the project to scoping.

Calculate trailing-12 retention, average days vacant, and delinquency over 30 days per property. Retention below 55% on stabilized multifamily is a service-quality flag — surface to the property manager before pricing renewals.

Sample 10% of active leases. Confirm signed lead-based paint disclosure on pre-1978 units, current renter's insurance certificate, and that any pet/parking/storage addenda match the rent roll. Missing LBP disclosures are a federal exposure, not a paperwork annoyance.

Use the loss-to-lease and submarket rent growth from prior steps. Where rent control or just-cause eviction ordinances apply (CA AB 1482, OR SB 608, NY HSTPA, St. Paul, etc.), confirm the cap before issuing renewal offers — overshooting the cap is a refund-plus-penalty event.

Confirm each property's rental registration, CO, and any short-term-rental permits are current with the municipality. Many jurisdictions (Minneapolis, Seattle, Philadelphia, Chicago) auto-fine on lapsed registration regardless of compliance with the underlying code.

Review marketing copy, screening criteria, and reasonable-accommodation logs. Source-of-income (Section 8) is a protected class in many jurisdictions — a 'no vouchers' policy is actionable. Check that screening criteria are documented and applied consistently across applicants.

Confirm smoke and CO detector logs, fire extinguisher inspection tags, pool barrier compliance, and any open environmental items (radon, asbestos O&M, USTs). For properties with elevators or boilers, verify state inspection certificates are current and posted.

Per-property recommendation: hold, reposition, refinance, or dispose. Attach the supporting memo with NOI, DSCR, market value, and capital plan. Owner or managing broker signature closes the quarterly review.