Can I See the Occupied Units?

7 Replies

I got a lead on a 4-plex where two units are occupied and the other two are recently renovated. Can I ask to see the occupied units to know what, if any work, needs to be done?

is the lead with the owner? Always ask to see all the units unless it is contingent on an accepted offer or other condition 

Yes you should be able to. You can ask to see it before you put in an offer, which would definitely be preferable. If the two were renovated there could be a decent difference in quality of the units...I would recommend seeing them prior to offering.

However, at the very least you should see it when you get the inspection of the property done if you walk through with the inspector.

Around here it's SOP to not show occupied units without an accepted contract. The reason is the seller doesn't want 50 tire kickers walking through and disturbing the tenants. And frequently the tenants don't even know the property is up for sale.

Once you have an accepted contract you should be able to walk through all of the units in addition to the property inspections you will want to do. You'll be in the option period and can renegotiate or terminate the contract if there's something you don't like.

Originally posted by @Fred Heller :

Around here it's SOP to not show occupied units without an accepted contract. The reason is the seller doesn't want 50 tire kickers walking through and disturbing the tenants. And frequently the tenants don't even know the property is up for sale.

Once you have an accepted contract you should be able to walk through all of the units in addition to the property inspections you will want to do. You'll be in the option period and can renegotiate or terminate the contract if there's something you don't like.

 This is typically the case here in the Bay Area, too.

Typing Alexandria Louisiana in the body of a post so that locals to OP, hopefully, can chime in and tell us how it is in LA.

@Jerie Bowie

Typically you can see the vacant units and use that to figure what it would cost to renovate a typical unit and figure that into your offer price.

Once the offer is accepted, you absolutely have the right to inspect the occupied units with a 24 - 48 hour notice to the tenant during your due diligence period.  You can then re-negotiate the offer if there are more repairs required than expected.

Like a previous poster said, they don't want to disturb the tenants for every tire kicker that comes along.

Hope this helps.

Jeff V

You may inspect others if your offer is accepted. But ask for photos, repair done on it and conditions they are in.  I suspect you saw the better units.

@Jerie Bowie Whether or not you can see them before an accepted offer is regional and can even depend on the preference or the seller or their agent. If there’s no “for sale” sign in the front yard they probably don’t want to spook their tenants. However, after an accepted offer you’d better get in there. You should also get a copy of the leases (not just the rent roll) as well. Like others have said, if you’ve seen the vacant units you’ve likely seen the nice ones. Side note, there’s nothing to prohibit you from putting a contingency about viewing the other units in your offer letter.

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