Takeover Checklist


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

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

Building permits for any ongoing construction
Utilities (electricity, gas, water)

    number of meters and locations
    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

    HVAC system
    control system

Other systems

Leasing/Marketing Information

Standard lease form–current
Variant lease form(s)–current
Current rent schedule

    base rate per square foot–basis (usable or rentable square feet)

escalation basis

    periodic percentage increase

pro rata basis

    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

        electromagnetic fields (EMFs)
        (leaking) underground storage tanks (LUSTs)

      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

        other claims


      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)


Landlord/tenant work specifications

Building permits for all tenant improvements (copies or originals)

Past vendors

    company, contact name, phone number

Other construction information


Janitorial services

Elevator maintenance

HVAC service

    preventive maintenance schedule

Fire extinguisher

Landcaping services


Exterior finish cleaning

Concrete steam cleaning (sidewalks, garage)

Sign maintenance


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


Job applications/resumes

    job descriptions
    most recent performance evaluations

Other employee information


Building exterior

    roof condition
    HVAC equipment
    deferred maintenance

Building interior

    systems condition
    surface finishes
    deferred maintenance
    structural engineering

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
    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
    phone number(s)

Insurance carrier(s)

    contact name(s)
    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


Exterior of building/monument sign
Handicap (parking/access)
Leasing/management office
Elevators (no smoking, permit, emergencies)
Evacuation (exits, directions for emergency)
Tenant directory
Establish tenant signage specifications


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

Tenant Information

Current leases
Applications and related information

    credit check
    security deposits
    other deposits

Copies of recent letters and notices from prior management
Current account status

    security deposits