Due Diligence - common sense is not always guaranteed.
The purpose of Due Diligence is to allow a buyer to assess the performance of the rent roll.
If you get to this stage of the process then we assume both the buyer and seller are committed to seeing the deal through.
Sellers should look to make the process as easy for the buyer as possible. Be prepared, start collating document's and files early. Do this well before the buyer is knocking on the door.
Buyers should be looking to get a sense of the operational effectiveness of the rent roll and that it is what was reflected in the marketing. Many buyers are happy with a spot check on a selection of files.
There are four key areas a buyer will investigate to assess the operational effectiveness of the rent roll. These are documentation, business structure, processes & compliance.
There are many reasons why people buy rent rolls. However, buying someone else’s problem is not one of them. They don’t expect a perfect set of files. They do expect a good standard across the board.
For more detailed checklists and due diligence processes please call David 0459503648.