Talking to the competition as part of due diligence?

[Leonid Sapronov]

I'm trying to analyze a 31-unit in a small midwest town. Right nearby, there's a larger apartment complex, maybe 100 units. The two are essentially on adjacent plots of land.

Would you try to contact the owner/manager of the neighboring complex prior to putting in an offer and what questions would you ask them? Would you tell them you are looking to buy the property next door or would you not mention it?

I really think the bigger complex people could be a source of invaluable information. The trick is extracting it from them. Ideally, if I could get them to answer my questions, I would ask (granted, I may be pushing my luck with some of these):

1) what are your rents and vacancy rates?

2) what is your typical tenant profile?

3) what is the demand for rentals in this area?

4) what do you know about the apartment complex next door?

5) what is your average yearly rent increase?

What else would you ask?