Walkthrough of a Triplex

[Mack Owens]

Hello BP,

I will be walking through a triplex tomorrow and want to get an idea of some essential areas of review as I'm going through the units.

Any advice at all, no matter how obvious it may seem, is and will be greatly appreciated!

Thank you in advance!!

-Mack

[Kelly N.]

Hi Mack,

Before I see a property, I like to know who is paying for which utilities- I typically call the utility company to find out how many meters are there and  the average monthly bill for each.  In our area, there is typically one water meter, so I have a general idea of what that bill would be based on my other properties.  Is the property legally permitted to be a triplex?  In that location, does the property get inspected by the city, and if so is it up to date?

See if your realtor can find out what the current rents are, and check how those compare with other similar properties in the area.

Once I am in the property, I am mainly interested in how well maintained the units are, whether there is room for improvement (better fixtures, adding laundry, adjusting layout) so that I can increase the rent, the age of the furnaces and water heaters, and roof condition.  What are the windows like?  How about the flooring?  You want to have a feel for what your capital expenditures are likely to be in the near future, and also the types of things you will likely have to address once the current tenants move out.

I find it helpful to take a video while I am walking through, always ask permission first. 

If there are tenants, ask them how long they have been there, what they are paying for rent, etc.  Make sure they know that you will honor their existing lease- putting them at ease will only make things easier for you.  Renting a place that is being sold tends to put people on edge- they sometimes have no idea what their rights are, whether they will be kicked out or not- it's the owner's or PM's job to tell them, but a lot of times they don't.