I’ve noticed a decent number of multi family units that are listed for sale on Zillow or Redfin etc will have all of two exterior pictures and then a very brief description of the units themselves and then say “Long term tenants. Please Do Not Disturb Tenants.” Does anyone have any experience in purchasing these types of properties? Is this a big red flag? Any thoughts or experiences would be appreciated.
Real Estate Broker · West Bloomfield, MI · Member since 2018 · 147 posts · 77 votes
6y
I don't think this is a red flag. It's quite common here and landlords just post that out of courtesy. They most likely don't want to freak the tenant out by signaling the property is for sale...sometimes the tenant might feel that with a new owner, they are going to have to move or rent will be raised etc.
Real Estate Broker · West Bloomfield, MI · Member since 2018 · 147 posts · 77 votes
6y
I don't think this is a red flag. It's quite common here and landlords just post that out of courtesy. They most likely don't want to freak the tenant out by signaling the property is for sale...sometimes the tenant might feel that with a new owner, they are going to have to move or rent will be raised etc.
Real Estate Broker · Tyler, TX · Member since 2018 · 193 posts · 143 votes
6y
@Chris Borunda If it's a duplex/triplex and they are only allowing you to see one unit, I'd ask to set up a time to see others...if they aren't willing, move on. If you are looking at a larger property and you can see several units, I'd say that you should be able to get a good idea of the overall condition of property. Always get an inspection, most issues with the property will be uncovered then.
Investor · Rochester, MI · Member since 2017 · 1k+ posts · 584 votes
6y
I go and talk with the tenants, I'm an agent as well. Now there maybe rights or wrongs, but if I'm standing on the street or walking by and let's say knock on the doors and ask them if they are the owner they say now and I spark up a conversation with them ask them what they are paying and what they think of the owners. For some reason it's very rare to find a landlord that talks with their tenants on a weekly or monthly basis. I talk to my tenants all the time and ask them for anything they need, contract is in place they know what to expect and I know the rent is paid and increases every year and the tenant knows. You will be amazed at some deals I see on MLS and what the truth is. Oh yea but there is a seller disclosure Arsen yea???? You can use that for toilet paper because most of the time it states in big letters seller never lived in property. Another red flag! You can see the units until you have a EMD deposit ok here is $500 or $1000.... no they want a $5000 EMD really???? Red flag! When your selling your place you should have open houses and your tenants should be aware. Rent goes up, jobs get lost, babies get born that's life. And to not disturb the tenants? If you think of it one day that will be your property would you like to know before buying that there is a Ted Bundy living there.
So go disturb them but in a smart way, it’s my money and I’m buying real estate not chips for the poker table.
Real Estate Broker · Tyler, TX · Member since 2018 · 193 posts · 143 votes
6y
@Chris Borunda If you are using a reputable agent to represent you, they will help you look for those red flags. Just pay attention to what you hear and see and trust your gut!
REALTOR® · Brockport, NY · Member since 2015 · 3k+ posts · 4k+ votes
6y
It's not a red flag to me. Any landlord has offered "Quiet Enjoyment of the property" in exchange for compensation. If a landlord lists a house and 400 "investors" show up during dinner asking the tenants all sorts of questions you can bet there is going to be a problem. Some "investors" believe they are buying tenants. They are not. Tenants come and go, Tenants may or may not be there when the thing closes. Tenants may be paying $1 a month rent. Irrelevant to anyone looking to purchase. (Just put property to be delivered vacant, it's the current owners problem on how to get them out). I always advocate treating tenants with respect. The seller has a responsibility to provide a non-harassing environment
I've had "investors" walking through back yards while little kids are playing. I've had "investors" looking in windows while a scantily clad tenant screams out. I've even had "investors" open up and just walk in. It's called trespassing. Not sure where some of these people feel like they are entitled to go on someones property after specifically being told no. I let my clients tenants know if anyone is on the property treat it like you would if the place was not for sale. Most landlords (should be all) ensure their tenants have adequate notice and stack appointments to limit the impact on them. It's great if you keep the tenants and they were great, until they were pestered for 2 straight months by every guy with no money trying to owner finance the place. Those are fun conversations the day after closing when you tell them rents are going up and they tee off on how they had 72 showings in a month.
Realtor · Oakland, CA and a Real Estate Investor with Multi-Family Units and a Self Storage Facility · Member since 2016 · 2k+ posts · 2k+ votes
5y
I'm actually speechless at one of the posters on this thread that is an agent. One would hope that when he has his own listing of a triplex with tenants in it, there are no agents utilizing "smart ways" to engage tenants after being specificlly told not to in writing. Code of ethics my man, that's what Realtors follow.
Investor · Akron, OH · Member since 2016 · 2k+ posts · 4k+ votes
5y
That's really common. I sure understand why sellers don't want to drag a bunch of lookie-loo potential buyers that may or may not be qualified to purchase through their tenants' homes. Usually, once you get an offer accepted you get to see all the units during the inspection period and you have an opportunity to renegotiate if there were nasty surprises.