4 Things Missing from Your Due Diligence Checklist (That Could Bite You Later)

If you're buying rental property and you're actually doing due diligence (congrats, gold star), I’m guessing your checklist still has some big holes in it. Most investors either slap one together from experience, borrow one from their agent, or grab it off a site like BiggerPockets. Not bad—but definitely not complete.

I’m PM Jen, and I help investors like you hold real estate longer, smarter, and with less bullshit. So let me give it to you straight—these four things are missing from almost every due diligence process I see. And when they’re missing, you're inviting surprises. And not the good kind, like found money or a surprise birthday party. I’m talking nasty surprises that cost you cash, time, and sanity.

This is not your full checklist—these are just the four big things you need to add immediately.

1. Get the Leases
If the property is occupied, you need every lease. I mean every lease, signed and current. You also want: lead-based paint disclosure forms, any lease addendums, and records of all security deposits.

Because here’s the deal: in Pennsylvania, when you buy that property, you're stuck with the leases that are in place. That means the rules in that lease—good, bad, or idiotic—are now your rules until that lease ends or gets renegotiated.

So what if the rent in the lease doesn’t match what the tenant is paying? What if the lease says the tenant pays water but they say the landlord always did? What if the lease is missing, or worse—verbal?

Yeah. You just bought a question mark.

Get an Estoppel that spells out: who lives there, how much rent they pay, what utilities they’re responsible for, the security deposit being held, and what kind of notice is required to terminate the lease.

This is basic risk control. Ask before you own, or you’ll be figuring it out in real time with an angry tenant.

2. Ask for Tenant Ledgers
Even if the lease looks good, I want to see the tenant ledger—a simple breakdown of all rent charges and payments. It tells you one key thing: how does this tenant actually pay?

You’re not collecting back rent owed to the seller. That’s not your problem. But if you’re walking into a situation where the tenant’s been consistently late or has bounced checks, don’t you want to know that?

One investor I talked to actually asked his bank to require the ledgers for financing. It worked. Wild move, but honestly... respect.

3. Demand Move-In Condition Reports or Evidence
I don’t care how the seller does it—photos, videos, signed forms—but I want proof of the property’s condition when the tenant moved in.

Why? Because when that tenant moves out and the place is trashed, you’ll need evidence to prove what’s damage versus what was already there.

If the seller doesn’t have it (and lots don’t), you need to create it yourself. Document the hell out of that unit the day you close. Pictures, video, timestamps—do it all. Then hold the tenant accountable for anything that happens after that date.

If you skip this, good luck keeping a security deposit or defending your position if the tenant sues you for it.

4. Check for a Rental License
In a lot of Pennsylvania towns, you need a rental license to operate legally. That usually means registering the unit, paying a small fee, and passing periodic inspections.

If you buy a property that’s not licensed, guess what? Now you own an illegal rental.

That can mean: surprise repairs to bring it up to code, delays in renting or renewing leases, fines and fees, and just a world of hassle you weren’t ready for.

Ask the seller if the property is licensed. Ask for proof. If they’re sketchy or evasive, file a Right-to-Know request with the municipality. Don’t just assume everything is fine because it’s currently occupied. People rent unlicensed units all the time.

What This Really Comes Down To…
You can still buy the deal if these things are missing. I’m not saying walk away. But don’t be shocked when you find yourself dealing with lease drama, sloppy tenants, or compliance issues two weeks after closing.

Add these to your checklist. Better yet—make your sales contract contingent on receiving this info early. Don’t wait until after you’ve paid for inspections or appraisals to find out what kind of shitshow you just inherited.

About Property Manager Jen 

I’m PM Jen, the—landlord educator, real estate investor, and your favorite straight-talker in the buy-and-hold game. Hold It With PM Jen exists to help real estate investors protect their assets, grow their cash flow, and stop spinning their wheels.

Our mission is simple: help you hold properties smarter, longer, and with way less bullshit. Whether you're new to real estate or knee-deep in it, I’m here to help you hold strong and grow big.