Takeover Checklist
Accounting/Administration
Create appropriate journals and ledgers and enter pertinent information accounts payable
- accounts receivable
balances forwarded (from predecessor)
individual tenant ledgers
Obtain previous management records for cross check and analysis
- rent roll
operating expense pass-through records
security deposits
rent increases
Obtain individual tenant records
- lease abstracts
estoppel certificates
insurance certificates
Obtain financial records from ownership or previous management
- current balance sheet
current operating budget
prior year’s operating statements
prior year’s paid invoices
prior year’s operating expense reconciliations and audits
prior year’s budget
other
Obtain payroll records
- arrange for transition and completion of new employee
Obtain prior operating expense data
- common area costs
pro rata basis for tenants
pass-through distribution of charges
Prepare operating budget
Other accounting information and records
Property Information
Mailing address
Legal description
Architectural information
- “as is” drawings/floor plans
floor-by-floor (stack) drawings showing current leased and vacant
square foot measurements of units/building(s)–architect
construction blueprints
remodeling/rehabilitation/renovation drawings and blueprints
other
Building permits for any ongoing construction
Utilities (electricity, gas, water)
- number of meters and locations
submeters
special tenant services
billing history
Telephone lines/service
Obtain list of current approved vendors (for each)
- company name and phone number
contact name
current contracts/subcontracts
pending accounts payable
Conduct full inspection of the property
Initial inspection
Conduct physical inventory of site FF&E
Elevators
- number
type
HVAC system
type
age
control system
Other systems
Leasing/Marketing Information
Standard lease form–current
Variant lease form(s)–current
Subleases
Assignments
Current rent schedule
- base rate per square foot–basis (usable or rentable square feet)
escalation basis
- CPI
periodic percentage increase
other
pro rata basis
- utilities
taxes
other operating expenses
common area costs
Outstanding lease negotiations
Develop marketing plan
- review previous plan
review prior budget
Market surveys–current data
Comparable properties–current data
Develop tenant information package
List of current vacancies
Legal/Regulatory Compliance Status
Review applicable regulations
- obtain prior reports/citations for violations
determine current compliance requirements that apply
correct any existing noncompliance
Americans with Disabilities Act (ADA)
- review current practices
establish policies and procedures for compliance
Environmental regulations
inspections as appropriate
Clean Air Act (CAA)
- review current practices
Clean Water Act (CWA)
- review current practices
Resource Conservation and Recovery Act (RCRA)
- review current practices
Other potential hazards
- asbestos
electromagnetic fields (EMFs)
(leaking) underground storage tanks (LUSTs)
radon
Occupational Health and Safety Act (OSHA)–See also Life/Safety
- review current practices
Tenant compliance information
- operating permits (copies)
Equal Employment Opportunity (EEO)–See Employees
Obtain files/records on pending legal actions
- lawsuits
other claims
Maintenance/Janitorial
Inspect equipment and storage areas–See also Inspections
- check compliance with fire codes
review safety procedures and compliance
check for locks (as necessary or appropriate)
Inventory equipment, tools, parts, and supplies
Obtain security information and procedures (if appropriate)
Construction
Landlord/tenant work specifications
Building permits for all tenant improvements (copies or originals)
Past vendors
- company, contact name, phone number
Other construction information
Contracts
Janitorial services
Elevator maintenance
HVAC service
- preventive maintenance schedule
Fire extinguisher
Landcaping services
- external
- internal
Exterior finish cleaning
Concrete steam cleaning (sidewalks, garage)
Sign maintenance
Security
Fire/security alarm monitoring
Waste disposal
recycling, if separate
Answering service—emergency
Leased equipment
Office equipment service/repairs
Pest control
Window washing
Other contracted services
Employees
Job applications/resumes
- job descriptions
- most recent performance evaluations
Other employee information
Inspections/Surveys
Building exterior
- roof condition
- HVAC equipment
- deferred maintenance
Building interior
- systems condition
- surface finishes
- deferred maintenance
- structural engineering
- asbestos
Building safety
- air quality monitoring
- elevator equipment
- evacuation procedures
- emergency procedures
- compliance status
Environmental impact reports
Preventive maintenance requirements
Real Estate Taxes and Insurance
Real Estate Taxes
- Current billing schedule
Next reassessment
Pass-through distribution
Copies of recent tax bills
Tax appeal records (with all legal papers)
Other tax information
Insurance Policies
- fire and extended coverage
comprehensive general liability
property damage
equipment
rent loss
workers’ compensation
special endorsements
other (e.g., environmental or “pollution” insurance, if appropriate)
Plate glass coverage, procedure and contact
Insurance broker
- contact name
address
phone number(s)
Insurance carrier(s)
- contact name(s)
addresses
phone number(s)
Other related information (e.g., outstanding claims)
Tenant insurance certificates
Vendor insurance certificates
Office/Permits/Licenses (on Site)
Inventory of office furniture, equipment, and supplies
Obtain master key(s) and set up key control system
Boiler (operating)
Air emissions
Elevator (inspection/operation)
Alarm system
Other applicable permits/licenses
Signage
Exterior of building/monument sign
Parking
Handicap (parking/access)
Leasing/management office
Elevators (no smoking, permit, emergencies)
Evacuation (exits, directions for emergency)
Tenant directory
Establish tenant signage specifications
Life/Safety
Check for compliance with OSHA–See Legal
Locate safety equipment (obtain and install, if necessary)
fire extinguishers
- location list
inspection records
fire hoses
sprinkler system
smoke alarms
first aid kit
controls for equipment/utilities
Check exit and emergency signage
Review procedures with fire department
Other
Tenant Information
Current leases
Applications and related information
- credit check
security deposits
other deposits
Correspondence
Copies of recent letters and notices from prior management
Current account status
- payments
delinquency
security deposits