5 Portfolio Property Sweeps To Conduct Before Buying

Buying a portfolio property is inherently risky, so it is always something you want to go into cautiously. You don’t want to be in a situation where you’re handing over money, and it is simply going down the drain. That’s why many experienced professionals recommend the concept of conducting “sweeps.”

The idea here is to observe the building from multiple vantage points. Then you use the information you learn to come to a conclusion about whether you should buy it. 

Conduct A Detailed Property Inspection

You’ll want to start with a detailed property inspection. These matter because they tell you about structural issues. They also reveal whether you need to make repairs after you move in (and how much they are likely to cost).

To carry out an inspection, talk to a professional assessor and see what they have to say about the project. Usually, they can tell you what’s wrong, and what might be a fair price given the issues that the home or apartment has. 

Audit Leases And Agreements

Next, you want to audit leases and agreements. This sweep checks that everything is in order. 

If a seller has promised a tenant, you want to find out how long they have left, and whether they are up to date with payments. You also want to know whether they have the right rent amounts and the terms of the rental (and if it is going to serve you). 

If rents are paid by credits or other schemes, it may add complications to your ownership. Always be careful and check the rules. 

See If You Have A Pest Issue

You also want to call in pest control to see if you have a pest issue at the property. You want to find out whether there are any rodents or insects on the property that have made it their home. 

Pest issues are a problem, especially in shared buildings, because of the sheer number of entry points. You need to ensure that the building owner or manager is on top of the issue and that they can help you if you have a problem in the future. 

Assess Market Conditions

Another sweep you should carry out is to assess market conditions. You want to make sure that you have the right template in place. 

Remember, conditions can vary locally quite substantially from one location to another. Some properties can shoot up in value quickly in surprising ways, while others can fail to budge at all, and will sometimes go down in price. 

Therefore, research local rental demand and transport links. Ask yourself whether the property is near to amenities, like schools, that people care about, and if rental growth is likely to expand. 

Check Health And Safety Compliance

Finally, you want to check health and safety compliance. Ensuring you meet the proper standards for things like gas and electrical safety certifications and fire regulations is critical. These can save you a lot of time in the future and potentially even protect you against being sued.

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