Here's a Due Diligence Checklist
When purchasing a multifamily property, you must earmark separate funds and time for a due diligence project. Professionals at residential due diligence management company use a specialized multi family due diligence checklist based on their past experiences to ensure value for money for their client. The post discusses a multi family due diligence checklist, to explain the process and help potential investors understand the elements they must focus on when buying a multifamily property. Take a look.
Environmental hazards lying around the property can be a substantial health risk to occupants and may also invite harsh penalties and troublesome litigations. To help their clients avoid this problem, providers perform a detailed environmental inspection that includes locating and reporting asbestos containing material, lead based paints, and PCB containing materials. The provider must also go through the property’s layout plan to locate underground fuel storage tanks, waste disposal units and dump sites, inspect them and include recommendations in their final report to minimize contamination risks.
It is important for the provider to inspect the building’s exteriors to ensure the layout conforms with the building codes. The professional must look for hazards such as uneven sidewalks, faulty wiring, improper lighting, sharp and hazardous equipment lying around unattended, and malfunctioning doors, windows, and walkways. The provider must also check for and report inconsistencies such as damaged roofing, misplaced trash containers, and inadequate drainage.
The provider must inspect gas connections (and ensure that they comply with the Gas Pipeline Safety Act), the wiring system, water and water systems, air conditioning and heating systems, and take a note of any repair and maintenance issues. They must also ensure the smoke detection and intrusion alarms are functioning properly and should go through the required permits to make sure there are no designing inaccuracies.
Last but surely not the least, any due diligence checklist is incomplete without including interior inspection. The provider must conduct a thorough inspection of appliances, flooring, ceilings, interior elevators, and furniture to ensure they’re in working condition. They must also suggest measures in their final report to address issues, if they find any.
Designing and exercising a multi family due diligence checklist is one of the best ways, for investors, to avoid unpleasant surprises after purchasing a property. If you are a multifamily housing investor, it is highly advisable that you work with an experienced multifamily construction and renovation service provider who uses their expertise to come up with a checklist that aims at detecting and addressing any hazards elements that can impact property’s value. Hiring professional service providers that offer a range of services, including renovation, and pre-construction will help address different concerns at various stages of property usage such as acquisition, renovation, and occupancy, thereby enabling you realize ROI benefits.