#1 – TENANTS: How many units are currently occupied? How many units are currently vacant? Will the tenants remain in the property? How long have they been tenants? Are they happy tenants? Any problem tenants?
#2 – LEASES: When do the current leases expire? Are the leases month to month or for a specific time? What is the security deposit for each unit? What is the monthly rent for each unit? What are the terms to renew the lease?
#3 – ESTOPPELS: Does the estoppel match the terms of the lease? What does the tenant own (refrigerator, stove, washer or dryer, etc.)? What does the tenant pay for (landscaping, water, garbage, etc.)? What does the landlord pay for? Any other special terms?
#4 – FINANCIALS: Does the current owner have complete financials for the property (tax returns or Schedule E and Annual Property Operating Data)? What are the expenses for the property? What is the current income for the property? Does it match the leases?
#5 – PROPERTY MANAGER: Are they self-managing the property? Is there a property manager for the property and is the current property management contract available to review? Is the expense accounted for on the financials?
#6 – UTILITIES: Are the utilities separate for each unit or are they combined? Who pays for the utilities – the tenants or the landlord? How are they billed and managed? Review the bills to make sure they match the financials.
#7 – MAINTENANCE: Who is responsible for maintaining the exterior and interior of the property? Is there a landscaping service? Is there a pest control service? Is there a cleaning service? Who maintains the property, and are the contracts available for review? Is the expenses for maintenance included in the financials?