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

1. Analyze Arrest Data / Drug Dealing History.
2. Conduct Observations of the Property
3. Conduct Observations of adjacent areas.
4. Obtain Law Enforcement’s Point of View
5. Debrief the Seller’s Property Manager, if possible re: crime and related problems at the property.
6. Debrief “Favorite Tenants” re: crime and related problems at the property.
7. Debrief  the Superintendent re: crime and related problems at the property.
8. Identify pending and potential Housing Court Cases re: criminal activities and objectionable conduct, as well as licensee, unauthorized sublets, and non-primary residency cases.
9. Estimate losses to be incurred to due to court costs, lost rental revenue, vandalism and increased difficulties in renting vacant apartments and commercial premises
10. Have the contractual sales price adjusted accordingly.

Due Diligence During Ownership and Management

1. Analyze Arrest data on a regular basis.
2. Conduct recurring observations of the property and adjacent area, the frequency to be dependent on existing conditions, and make recommendations to management.
3. Maintain contacts with the Police Department’s Narcotics Division, local police precinct, and local detectives.
4. Regularly identify Housing Court Cases based on criminal activities and objectionable conduct, as well as licensee, unauthorized sublets, and non-primary residency cases.
5. Oversee the Security Staff, where applicable.
6. Frequently discuss conditions at the property with the property manager, and also the Superintendent and “Favorite Tenants.” As appropriate.

Pre-Sale Due Diligence 

1. Leave no stone unturned. Accelerate all efforts so the prospective buyer’s exercise of due diligence finds nothing surprising regarding crime and related matters.
2. Other Considerations
3. Monthly Reports
4. Quarterly Meetings.
5. Lease Language, House Rules, Preventative Property Management Practices, Social Services and Drug Treatment, and Narcotics Complaints.