Measuring actual and foreseeable problems, and the consequential costs, due to criminal activities, objectionable conduct, and other behavior contrary to sound property management.
Pre-Closing Due Diligence
- Analyze Arrest Data / Drug Dealing History.
- Conduct Observations of the Property
- Conduct Observations of adjacent areas.
- Obtain Law Enforcement’s Point of View
- Debrief the Seller’s Property Manager, if possible re: crime and related problems at the property.
- Debrief “Favorite Tenants” re: crime and related problems at the property.
- Debrief the Superintendent re: crime and related problems at the property.
- Identify pending and potential Housing Court Cases re: criminal activities and objectionable conduct, as well as licensee, unauthorized sublets, and non-primary residency cases.
- Estimate losses to be incurred to due to court costs, lost rental revenue, vandalism and increased difficulties in renting vacant apartments and commercial premises
- Have the contractual sales price adjusted accordingly.
Due Diligence During Ownership and Management
- Analyze Arrest data on a regular basis.
- Conduct recurring observations of the property and adjacent area, the frequency to be dependent on existing conditions, and make recommendations to management.
- Maintain contacts with the Police Department’s Narcotics Division, local police precinct, and local detectives.
- Regularly identify Housing Court Cases based on criminal activities and objectionable conduct, as well as licensee, unauthorized sublets, and non-primary residency cases.
- Oversee the Security Staff, where applicable.
- Frequently discuss conditions at the property with the property manager, and also the Superintendent and “Favorite Tenants.” As appropriate.
- Leave no stone unturned. Accelerate all efforts so the prospective buyer’s exercise of due diligence finds nothing surprising regarding crime and related matters.
- Other Considerations
- Monthly Reports
- Quarterly Meetings.
- Lease Language, House Rules, Preventative Property Management Practices, Social Services and Drug Treatment, and Narcotics Complaints.