Rental Property Investor · Oceanside, CA · Member since 2018 · 78 posts · 60 votes
Hey guys and gals, I'm putting an offer on a place in PA and the realtor is having difficulty getting into the house so she can facetime me the inside. The tenants have been stalling for the past 2 weeks. This would be my first investment property. It is listed at 60k, I'm offering 50k. Tenants are currently paying $1100 a month in rent so it is a good cash flowing property. From the previous pictures, there will be some repair needed - eventually. Not right away since the tenants are long term. I'm hoping to BRRRR this in the future.
Is this tenant issue indicative of something? Intuitively it tells me they're messy but if they pay, then they pay.
@Christopher Lane that could be an indication of something else going on. There was a property that I was considering purchasing and one of the tenants agreed to the appointment but wouldn't let us in because she was in the process of getting evicted. The relationship between the tenant and the landlord might not be a good one, people tend to sell their problems.
@Christopher Lane I would not assume anything about the tenants until you see inside. You have no idea what is happening on the ground.
There could be issues with listing agent giving proper notice, maybe the current owner doesn't get along with the tenant, maybe the tenant works 3rd shift and your agent is trying to get there in the morning/early afternoon, etc.
Point is you do not know and I have had clients mistakenly assume access issues were indicative of bigger problems when they weren't and they missed out on good deals because of it. I've also had the flip side happen where good deals were made just because the buyer was persistent but patient about getting access.
With that said, once you/your agent gain access you will get that clear picture you are looking for. In the meantime if another deal presents itself before a showing can be arranged on this one then you may have to consider moving on because you do not want this to prevent you from landing another solid deal.
I suggest having your agent ask the seller/listing agent what times work for the tennant - go on their schedule so that they can't complain/decline the showing. Definitely wouldn't buy it without seeing inside first.
@Christopher Lane What is the lease situation like? If possible, I would make a contingency that the house be delivered to you empty. If these tenants won't allow a showing to your realtor, what makes you think they'll allow a showing when you want to find new tenants?
Check the leases. Most give access to the property with 24 (or more) hours notice. If listing agent cannot accommodate, try to have your (buyer) agent get tenant contact info and set it up directly. Assuming there are keys to the property, the listing agent should be cooperating with the your agent to get access with or without tenant being there, IE; keys.
BTW, this happens ALL THE TIME. As managers, we find the most cooperative tenant, and only show their apt--we will only arrange for full inspection when a written offer comes in, subject to complete inspection.
Brokers: try having a dinner-out-coupon sent to them for being so nice and accommodating for the showings. A little appreciation often goes a long way.
Your Realtor should have a talk with the seller's Realtor. Give him a deadline to see the property or walk away. Seller may not be that interested to sell if this is an on-going issue. Usually, if the property is "for sale or for rent", depends on the state and lease, there is a charge/fee against the tenant for accept to show the property (usually 1 day notice) then not allow the property to be available. Simple put, If someone wants to sell, they will do whatever they can to sell, even showing the property with tenant inside...
I would not buy the property with the tenant in place, especially if you are looking for substantial repairs/renovations. You can always find good long term tenants.
As an agent who has shown tenant occupied properties to buyers, I can say this is common. Tenants will often not respond to calls for showings or otherwise obstruct the process because its inconvenient for them and they are going to get no benefit from the sale.
I would encourage the sellers agent to be more assertive if possible with the situation. If they need to post a notice on the door about the showing a day before and do the showing without making direct contact with the tenant, I would do it as long as entry with notice is allowed in the lease.
I would also as mentioned above ask if the lease allows for termination with a sale. So, that you could have the choice whether to inherit this tenant.