7 Property Data Checks Every Landlord Should Do Before Buying a Rental  

Rental properties can provide a great return on investment for dedicated landlords who are able to identify and maintain high-value assets. However, it’s not uncommon for homes that appear to be great investments at first glance to be hiding serious issues under the surface.

Whether you’re new to the market or an existing landlord looking to expand your portfolio, it’s important to have a structured due diligence process to follow. With this in mind, the below post details 7 property data checks every landlord should do before buying a rental property.

Why Are Property Data Checks Important?

Property data checks are a critical component of due diligence that help landlords to limit financial risks, protect the value of their property and ensure a safe environment for tenants.

Using a trusted property data research tool, landlords can find and organize important data like ownership, lien, zoning and sales records linked to the rental property they’re interested in, then use these insights to make an informed purchase decision built around their needs.

7 Essential Property Data Checks for Landlords

When searching the market for a good rental property investment, it’s important to ensure any asset under consideration is free from issues that could cause later problems. Using a quality property data research tool like PropertyShark, set out to perform the below checks.

1. Ownership and Contact Data

Landlords can verify the legitimacy of a property listing by securing credible ownership and contact data from a trusted source. Property data research tools can provide landlords with updated, verifiable information about current and previous owners to check against listings.

Using this information as a reference, landlords can confirm that the person listing the asset is the true owner and that the listing is not part of a fraudulent operation. This check must be performed before any payments are made in the form of fees or deposits to safely limit risks.

2. Property Characteristics

Property characteristic checks provide detailed information about building specifications like square footage, built date, lot size and number of stories. By requesting a property report via a service like Property Shark, landlords can find this data and check it against sales listings.

3. Sales and Title History

Sales and title histories contain important information about previous transactions related to the property in question. By running a property search, landlords can secure credible records of all historic sales and title transfers, including sales dates and persons named on the deed.

This information can help landlords ensure the title for a rental property is marketable and that the new owner will not be liable for any outstanding debts. It can also tell landlords how frequently a property has been sold which can be a good indicator of hidden property issues.

4. Foreclosure Information

Foreclosure information is critical to obtain before purchasing a rental property to help avoid risks related to evictions, debts and tenant disruption, and hidden repairs. Good property data research tools will provide this information within property reports under pre-foreclosure and foreclosure filings.

5. Zoning and Development Records

Zoning and development records detail essential information about the zoning classification of a property and its legal intended use. This information is particularly important to check for rental properties, as landlords must make sure the asset can be legally inhabited by tenants.

Should a landlord purchase a property then use the asset for a purpose not permitted under its current zoning classification, they will run the risk of facing severe financial penalties and legal consequences, regardless of whether they were aware of restrictions prior to purchase.

6. Permit and Violations Reports

Permit and violations reports secured via a service like Property Shark provide landlords with details about building permits, renovations and violations linked to an asset; reviewing these records can help buyers avoid fines and demolition orders associated with unpermitted work.

7. Tax and Assessment Information

Landlords must check tax and assessment information before purchasing a rental property to gain a practical understanding of the potential profitability of the asset. Property data research tools can uncover vital insights like tax class, exemptions and annual tax amounts.

Key datasets to parse include tax records to identify the assessed value of the property and local assessment reports that can highlight any special assessments or liens associated with the property that the seller has failed to disclose, as well as data concerning operating costs.

Final Word

Success in the rental market is often dependent on good research and due diligence, but too often landlords miss important information that’s been intentionally or accidentally obscured. 

By identifying a trusted and comprehensive property data research service and filing for a detailed property report, landlords of all experience levels can make sure they’re working from all the key information required to make smart, informed, profitable purchase decisions.