Due Diligence items for apartments?

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I finally have a small apartment complex under contract at a good price after a few years of trying to move up to larger units.

Does anyone have a good due diligence guide?

Thank you,


confirm rent rolls. Ask for leases and confirm rent with tenants. 

Confirm expenses. Ask for 2 years ofBill's. 

Ask for zoning. Or esa certificates and fire inspections. 

Ask about any differed maintenance and get 3 quotes on any major work that needs to be done

 There is more but that's what I can think of off the top of my head.

@Toben B.

Old Capital Podcast has a Sample Multifamily Due Diligence List.  Google it because i don't think BP allows us to link to certain websites that is considered a vendor or referral.  If not, I can email it to you.

Hi @Toben B.

Congrats on getting an apartment complex under contract.  The list @Michael Dang suggested appears to have everything you will need.  

Carefully go through all materials and leases you receive to make sure there aren't any odd clauses that could throw your business plans for operation off after you close.  Be sure to verify all their financial statements with their bank statements.  It's one thing to say you are getting/spending a certain amount and another thing for it to hit the account.


@Toben B. congrats on the property. 

Here is a sample and detailed checklist. It can defenantly be improved, but you can use it as a base to start. Note, it is possible that the owner may not have all the details below if they do not keep good bookkeeping.

Due Diligence Checklist

1. One (1) copy of the standard lease form and the rules and regulations for the Subject Premises.

2. Copies of lease and inventory checklist for each unit.

3. Copy of all permits, licenses, and Certificates of Occupancy for all buildings and all units.

4. The rental increase history for the property for the last two (2) years and the effective dates.

5. A schedule of any rent incentives and programs within the last twelve (12) months.

6. Historical occupancy for the last two (2) years and year-to-date.

7. Copies of real and personal property tax bills for the last two (2) years.

8. Summary of capital improvements made over last two (2) years.

9. Copies of last two (2) years of tax returns.

10. Copies of last six (6) months bank statements showing rent deposits.

11. Copies of Engineering Reports and Appraisals.

12. Copies of Environmental Reports.

13. Copies of lawsuits and violation notices pending against the Subject Premises.

14. Copies of any existing surveys.

15. Copies of all vendor contracts.

16. Copies of the last two (2) years utility bills, to include: Gas, Water, Electric, Trash.

@Toben B. you really can't overdo due diligence. i'd do everything suggested above and then dig deeper. Social media vetting of tenants, exhaustive interviews of management companies, walk each unit, etc.