Rental Property Due Diligence Checklist
Printable 1-page walkthrough sheet to verify leases, structural CapEx, zoning, and title before closing.
REAL ESTATE ACQUISITION DUE DILIGENCE
Property Inspection & Underwriting Verification Sheet • 2026
💰 1. Financial & Lease Verification
Certified Rent Roll: Verify active lease agreements, tenant payment ledgers, and security deposit accounts.
24-Month Utility Bills: Water, sewer, trash, gas, and electric history to confirm landlord expenses.
Tax Assessment: Current county tax assessment and tax rate history to anticipate post-sale adjustments.
Insurance Loss History (CLUE Report): Check for past insurance claims and flood history.
🏗️ 2. Physical & Major CapEx Systems
Roof & Attic: Roof age (under 15 yrs), flashing condition, decking rot, and attic ventilation.
HVAC & Furnace: Age, SEER rating, heat pump operational status, and ductwork integrity.
Plumbing & Main Sewer Scope: Camera scope lateral sewer line to street (check for roots, cast iron).
Electrical Panel: Minimum 100A/200A service, breaker status (no Federal Pacific/Zinsco panels).
⚖️ 3. Legal, Title & HOA Governance
Preliminary Title Report: Verify clear title, no contractor liens, easements, or encroachments.
Zoning & STR Compliance: Check municipal zoning code (single-family, ADU allowed, short-term rental permits).
HOA Covenants (CC&Rs): Verify rental caps, minimum lease durations, monthly dues, and reserve fund health.
Certificate of Occupancy: Ensure no open building code violations or unpermitted additions.
📍 4. Location & Tenant Demand
Market Rent Comps: Cross-reference 3 active neighborhood comps on Zillow, Rentometer, and Redfin.
Neighborhood Quality: Drive by property at morning, afternoon, and night; check street parking.
Flood Zone Determination: Check FEMA flood map (Zone X vs Zone A/AE flood insurance requirements).
Major Economic Drivers: Proximity to major employment hubs, transit, hospitals, and universities.
Generated by PropertyYield.tools • Professional Real Estate Investor Reference Sheet.
Inspection Checklist 2026
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