Physical Unit Inspection

The inspection should be thorough.  Whether completed by the investor or their representative, short cuts can costs very large amounts of money.  The key to an effective inspection is a unit checklist.  The list should review every item:

1. Verify floor plans,
2. Take photos of each room, appliance, and system before beginning,
3. Check each item in the units:

• Plumbing including type of pipes, condition of pipes, etc,
• Electrical including number of circuits, amperage of circuits, type of wiring, location of meters and distribution
• Waterheaters,
• Leaks under cabinets, around faucets, drains, and signs of water damage through the unit,
• Condition of carpet including type and condition of pad (to the extent it can be determined),
• Condition of dry wall and style of paint for walls and ceilings,
• Condition of exterior and interior doors, doorways / frames,
• Condition and type of insulation,
• Condition of cabinets and hardware,
• Type and condition of lighting and other fixtures,
• Toilet conditions,
• Tub and shower condition,
• Window condition (air leaks, signs of water leaks, single pane, etc.)
• Condition of HVAC, heating, and cooling.

All systems should include collecting brand and model.  Find out where the complex gets supplies for these systems.

The inspection should result in by unit photos and lists of all current condition factors.

Photos

Due diligence is a great time to capture a photo perspective of the property.  Photos should accomplish a number of items:

1. The best faces of the property will give a good start for the property website later.  These photos may be where you begin before you are able to capture professional staged photos of views and residents later on.
2. Photos should capture each critical view of the units, the buildings, the grounds, amenities, nearby shopping, neighborhoods, nearby sites.
3. Photos should provide critical information for planning improvements, staging the office and a myriad of other items.

Photos are one of the critical items for showing the property to investors, to lenders, to staff and support contractors as you develop initial operations and business plans.