Multifamily: What Information do I need before closing?

Question

Hi all,

I am buying a six-unit multi-family and I was wondering if anyone has a checklist or a suggestions of information to get before closing from the seller, like phone numbers of tenants, which utility providers the Owner uses etc... What is also standard/realistic to get from the current Owner?

This is what I am thinking so far:

1) Leases and Phone Numbers of Tenants

2) Personal property list

3) Current contracts if, any, for landscaping, trash etc...

4) security deposits

5) Most recent 6 months of bills for water/sewer, gas, and electricity.

Anything else? Thanks in advance!

Jeff Greenberg · Answer

I don't see tenant applications or current rent roll on your list.  Outstanding work order requests.  I am assuming you have gone through an extensive due diligence list so I am not including it here.

Mary S. · Answer

We are in contract with no contigencies, and yes, we already got the leases.  I don't have a property manager in place.

Jeff Kehl · Answer

@Mary S. Yes it would help to know where you are in the process. Did you just go under contract and are starting due diligence or are you about to close or in the middle somewhere? Also do you already have a property manager in place? My property manager usually does a lot of that for me since they will own the relationship with the tenant.

Mary S. · Answer

Additionally, I am planning to have a property manager run the property as soon as possible. Any advice on how to turn it over to a manager in the beginning, so that I can learn about/follow along to get to know the individual properties issues, etc..?

Thanks!