First thing that you look for when walking into a rental property?

Question

What is the first thing that you look for when walking into a rental property? Does this change if the home is vacant or occupied?

Scott Mac · Answer

DOG(s)!!! X (10)

I don't want to be jumped or or bitten.

Lorien Wolff · Answer

@Alec Barnes, as a multifamily manager, I agree with Bjorn, I look at ledgers and leases first! Regardless of whether the home is occupied or vacant, when walking then home I look at the baseboards, the ceiling fans, HVAC return, the corners of ceilings, crown molding (if applicable), etc. This tells me how often the tenants do a 'deeper clean' for upkeep. Personally, I give additional attention to the small details.

Happy investing!

Jeff Schemmel · Answer

@Alec Barnes Exterior: siding material, grading, roof material, tree canopy (root systems), 360 street view for condition and to gauge traffic. I look for low spots in the yard and around the house, the condition of the neighbor's homes relative to the subject, the condition of windows, and the material used to trim them. I look for meters (gas, electric), low-hanging wires, what type of landscaping may or may not be used (maintenance), and the condition of any walkways, concrete steps, etc. The main things are water drainage and long-term damage caused by water.

Interior, it's usually pretty obvious how well a property is cared for by an owner when observing the common areas and basement (if you have a basement). unit condition is a crapshoot based on the tenant. I'm looking for evidence that HVAC systems are cleaned/maintained, and plumbing systems were updated to more modern piping like PEX, or at least copper lines instead of galvanized. I'm looking for proper support of the main load-bearing beam, and any joists that have been notched improperly or are not in good condition. I'm looking for insulation, water intrusion (after having already looked for clues outside), and systems like a sump pump and drain tile in the Midwest. I'm looking for old electrical (Knob & tube) if I'm in an older building. I'll keep a flashlight, measuring tape, and occasionally an outlet tester on me to check for grounding, reversed polarity, and the tape for measuring room sizes to ensure conformity to bedroom standards (height, fsqft). I'll pay attention to the layout and any pass-through style bedrooms, and while I'm walking through if there are tenants there I'll talk with them just to learn what I can. Usually, tenants are quite willing to talk openly about the landlord, building, etc. They don't have a lot to lose by being honest. Lastly, I will assess the age of capex items like roofs, mechanicals, appliances, flooring, windows, etc to get a feel for what items are more urgent vs. those that may not be needed in the next decade.

not an exhaustive list, but these are the things on my mind during a showing as an agent who's been in a lot of rental properties and thinks like an investor.

Kai Kopsch · Answer

For new to-acquire properties, rental contracts,s, and history age of all essential things like HVAG, water heater roof, and appliances. Afterward, do a walk-thru with a Property-Assessment-Form. If you like to create your own form I can send you my form.

Ren Lok · Answer

The main things I look for are foundation issues, water damage, termite.

Another thing is big trees surrounding the property.

Bill B. · Answer

Depends on the market. For me it’s how old are the ac units and what’s their condition? Most of my homes have 2 units. Those 2 units can cost more than painting and re-flooring the entire home. Beyond that we live in stucco boxes with tile roofs. Does it need new flooring does the entire inside of the home need to be painted? That’s about it for major items. 90% of my purchases have been bought from pictures, there’s just nothing to be gained from me seeing it.

Richard F. · Answer

Aloha,

I am looking for signs of water damage and termites, occupied or vacant.

Bjorn Ahlblad · Answer

@Alec Barnes Welcome to BP! I always start with the numbers, rent roll and leases, and go from there. Assuming it warrants an inspection an offer will have been made and I start by looking at the neighborhood when driving in.

I will circle the building looking for parking, general condition, cracks in pavement and building, look at the cars, any abandoned vehicles, size of dumpster, garbage around the container etc. Look over the main door and entry. "Under different circumstances could I live here"?

Generally I will have an inspector with me and we expect to see every unit. Any units not shown are a serious red flag and result in a price reduction. After that we get into the main systems, roof, parking garage, doors, windows, storage areas etc. It is a comprehensive undertaking. All the best!

John O'Leary · Answer

Hey Alec,

When I evaluate a rental property from an investment perspective, the financial aspects are crucial considerations. While the initial visual inspection is important, assessing the property's potential cash flow, cash on cash return, and potential appreciation should be a priority for an investor. After running numbers I would look at structural integrity, plumbing and electrical systems, life expectancy on roof and AC. Anything that could be an expensive fix once purchased. If there is a tenant in place make sure you see how much time is on the lease, is the property currently under marker rent? What is the tenant quality? Assess factors such as their payment history, cleanliness, and overall care for the property. A responsible and reliable tenant can save you the time and effort of searching for a new tenant, minimizing potential rental income gaps.

First thing that you look for when walking into a rental property?

First thing that you look for when walking into a rental property?

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