Due Diligence

The Due Diligence process is quite involved and while you may be an experienced or novice buyer, this process can make the difference between making a good acquisition and buying something that may not turn out to be what you had thought (or hoped) it to be.  There are a number of things that should be done and we can help with many of them.

For example, you may want to have an environmental study done, you may be required to have an appraisal, you should have a licensed contractor inspect the physical plant including the roofs, buildings, air conditioners, plumbing, electrical etc.   The process should include verifying the zoning, having the proper permits and licenses to operate, knowing what the community may or may not be doing with respect to the area streets, sewers, etc.  All these things play an important part in your decision making process.

So where do we come in?  Our expertise is in looking at the business from an operating basis.  Are the Managers a good fit for the property, is the software system fully utilized and are you getting information critical to your decision making process, are the rents in line with what is being reported, are your delinquent customers being dealt with properly, is the marketing, maintenance and operating systems in place and working smoothly?  These are all details that we can evaluate and make recommendations to you. 

When a broker presents a potential sale to you we understand that they are trying to get the best deal for their client, and while the information provided to you should have been from the seller, we can verify that the information is correct and accurate.  This is important because you need to know if not only the income will be what you expect but that also you will not have any surprises when it comes to expenses.  For example, when you purchase the property, will the property taxes increase and if so, why and by how much?  What are the wages the seller is paying and do they include any benefits/bonuses/commissions and are they all reported properly?  What can you expect in deferred maintenance costs?  What monies have been allocated for marketing and are they sufficient.

Bottom line, we can answer those questions for you and would like to work with you on your due diligence project.

Learn more about due diligence from Professional Self Storage Management, LLC

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