Is It Normal Not to have Rent Rolls/Leases Until Late in Due Diligence?

Is It Normal Not to have Rent Rolls/Leases Until Late in Due Diligence?

Member since 2026 · 4 posts · 1 vote

This is Our 1st Multifamily Investment and we want to be extra careful.

My wife and I are purchasing our first multifamily investment property in New York, and I’m trying to understand whether our current experience is normal.

We had our offer accepted and are currently under contract. However, our due-diligence deadline is approaching, and we still haven’t received basic information such as:

* Current rent roll
* Copies of tenant leases
* Tenant payment history
* Security deposit information
* Outstanding tenant balances
* Property operating expenses and utility information

I asked our realtor about getting these documents, and he responded that they normally don’t obtain rent roll information until further into the deal. He mentioned that he had already asked our attorney to request it.

My question is: Is this actually standard practice when purchasing multifamily properties?

I understand that certain documents may not be provided until an offer is accepted, but shouldn’t these documents be obtained early enough in due diligence for the buyer to properly evaluate the investment?

I’m particularly concerned about potentially reaching the end of our due-diligence period without having verified the property’s actual income and expenses.

I’d also appreciate feedback on whether this is something that reflects poorly on our realtor’s handling of the transaction, or whether I’m expecting too much.

We’re first-time multifamily investors, and I want to establish a good relationship with an agent who understands investment properties. I’m wondering whether I should consider finding a different realtor for future purchases.

I’d appreciate hearing from experienced multifamily investors, particularly those familiar with New York transactions.

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Greg ScottPro Member
Rental Property Investor · SE Michigan · Member since 2014 · 4k+ posts · 6k+ votes
1d

Given that you are talking about your Realtor, I assume this is not a commercial multifamily property; it is a duplex, triplex, or quad. In that case, you are probably using the boilerplate contract designed for single family properties. It probably has no mention of the paperwork you want.

In the apartment space, we use custom contracts. That said, it is standard practice for the contract to outline due diligence items that must be received. Some contracts may indicate that the due diligence period does not end until a certain number of days AFTER all the due diligence paperwork is received. All the things you mentioned (and more) are standard due diligence paperwork that the seller must provide the buyer, and the contract explicitly spells out what is required.

So what are you to do? If I were you, I would tell my realtor that these are their options:

  1. Get me the items I requested ASAP

  2. Get an addendum signed extending the due diligence period until X days after I get the required paperwork. (Make sure the addendum lists those items. You can probably create a draft with AI, but I would have a lawyer look it over.)

  3. Cancel the transaction.

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  • Greg ScottPro Member
    Rental Property Investor · SE Michigan · Member since 2014 · 4k+ posts · 6k+ votes
    1d

    Given that you are talking about your Realtor, I assume this is not a commercial multifamily property; it is a duplex, triplex, or quad. In that case, you are probably using the boilerplate contract designed for single family properties. It probably has no mention of the paperwork you want.

    In the apartment space, we use custom contracts. That said, it is standard practice for the contract to outline due diligence items that must be received. Some contracts may indicate that the due diligence period does not end until a certain number of days AFTER all the due diligence paperwork is received. All the things you mentioned (and more) are standard due diligence paperwork that the seller must provide the buyer, and the contract explicitly spells out what is required.

    So what are you to do? If I were you, I would tell my realtor that these are their options:

    1. Get me the items I requested ASAP

    2. Get an addendum signed extending the due diligence period until X days after I get the required paperwork. (Make sure the addendum lists those items. You can probably create a draft with AI, but I would have a lawyer look it over.)

    3. Cancel the transaction.

    • Member since 2026 · 4 posts · 1 vote
      8h

      Thanks for your response. Yes, it’s a smaller multifamily property (two-family), and we’re using a fairly standard residential purchase contract I believe.

      For future purchases, would you recommend specifically working with a realtor who has experience with investment properties, even when purchasing smaller 2–4 unit residential properties? I’m starting to realize how important it is to have someone who understands the investment side of these transactions

  • Investor · Las Vegas, NV · Member since 2013 · 8k+ posts · 10k+ votes
    1d

    Get it in writing that you can cancel up to 3-5-10 days after you get these documents or be prepared to cancel now before your inspection period ends.

    Also get an estoppel from each tenant. (A document saying they are paying this much per month, their lease ends on date x/x/x, amount of any security deposit being held (make sure you get this from seller or you will be out that much.), any amount past due or paid in d]advance, and any promises or deals made. (I get a discount fo shoveling, they landlord said he’d replace my fridge, etc etc…). You NEED this.

    • Member since 2026 · 4 posts · 1 vote
      8h

      Thank you, I appreciate the advice!

      I hadn’t even considered requesting tenant estoppel certificates, but that makes a lot of sense.

  • Member since 2026 · 1 post · 0 votes
    7h

    That's not standard, even on a two-family. You want those income docs early enough to walk if the numbers are off. Next time have the attorney put the document list and a deadline in the contract.

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