Property Inspection Checklist

Property Inspection Checklist

Common Areas – Outside.

What kind of cars are in the parking lot? Nice? Junk?

What do the grounds look like? Neat or Unkept?

Landscaping?

How Do The Trees Look? Healthy?

How do the parking areas and sidewalks look?

Do you see any items that need attention? What are they?

Are these items going to be easy to fix and repair or will they cost a lot of money?

Check your answers because the better the condition of the exterior without there being a need for a lot of capital to be put into the outside of the property the better. Based on what you have seen on the outside do you think you need to put money into the outside common areas?

Common Areas – Inside.

Condition of the Halls, Walls, Carpeting, Other Floor Coverings?

Condition of Any Meeting Or Conference Rooms?

Condition of the Laundry or Other Facilities?

Check your answers because the better the condition of the inside common areas without there being a need for a lot of capital to be put into the inside of the property the better. Based on what you have seen on the outside do you think you need to put money into the inside common areas?

Inside of the Apartments

Condition of Walls?

Condition of Floor Coverings? Carpet, Linoleum, Etc.?

Condition of the Appliances?

Condition of Heating and Cooling Systems?*

Condition of the Cabinets, Countertops?

Condition of Decks or Patios?

Check your answers because the better the condition of the inside of the apartments without there being a need for a lot of capital to be put into the units the better. Based on what you have seen do you think you need to put money into the interior of the apartments themselves?

Outside of the Apartments – Exterior of the Building

Condition of the roof?

Exterior of the building in need of paint or repair?

Condition of any A/C units or other appliances?

Check your answers because the better the condition of the exterior and interior of the apartments without there being a need for a lot of capital to be put into the exterior of the building or mechanical systems the better. Based on what you have seen do you think you need to put money into the exterior of the building or the apartments themselves?

WORKSHEET:

1. What Is The Current Average Rent For This Apartment Property?$______
2. What Is The Market Rent For This Kind of Apartment Property? $______
3. Subtract Number 2 from Number 1.$ ______
4. If #3 Is More Than Zero Multiply This Number By the Number of Apartments At This Property $______(if answer is zero you can stop here)
5. Take Answer To #4 and Divide By 2. $ ______
6. Take #5 and Divide By Your Current Market Cap Rate % $ ______.
7. Estimate The Money You May Need To Spend On Cleaning and Sprucing Up The Apartment Property. ______.
8. Subtract 6 From 7. This is your net profit ______.

*You are not doing a furnace inspection or cooling inspection. Just look at the age and condition of the units and make your best estimate as to how much life may be left in these.