Purchasing units with “do not disturb tenants” in listing

[Travis Beatty]

Hey BP fam!

I’m looking to purchase my first long-term rental property. I have been seeing listings on Zillow stating that some properties are currently being rented, and that tenants are not to be disturbed. What are y’all’s thoughts on these listings? Is this common? How would I go about seeing the properties? TIA

[Dustin Allen]

@Travis Beatty

This is very common. The listing will say what type of showings they will allow. Sometimes they just want to see preapproval and proof of funds before any enters the property and other times they won’t allow showings until after an accepted offer.

You obviously want to make sure that your offer is contingent on you physically seeing the inside of the property and approving of the condition if not having a full inspection contingency. Nothing wrong with seeing after an offer is accepted so long as you protect yourself as the buyer.

People shouldn’t be disturbing tenants anyways regardless of what the listing says.

[Jon Kelly]

@Travis Beatty there's a difference between "not disturbing tenants" and "no access to the property." 

You should reach out to the listing agent or owner and schedule showings. They will coordinate with the tenants to let you in. If the listing agent / owner pushes back and says, "sorry the tenants aren't cooperating with showings," then that's a red flag. Doesn't mean you should walk away. Just lower your offer and make it contingent on an inspection or at least a walkthrough. 

I like these types of listings because it potentially 1) scares your average investor away, and 2) could mean the seller doesn't have a great relationship with the current tenant(s) and is willing to unload the property at a discount