When you’re buying a multifamily property, hiring a qualified inspector is highly recommended. But as a property management company, we also want to look at every individual unit and the details that can turn into expensive problems after closing.
At Turn Key Property Management, I look for issues that may be easy to overlook during a general inspection but can add up quickly across a building.
Start with the electrical panels. If a property has Federal Pacific panels, that deserves further review. Some insurers may decline coverage or require replacement, and upgrading panels across a multifamily property can be a significant expense. Check the panels with a qualified electrician and confirm insurance requirements before you finalize your numbers.
Check the shutoff valves. Look at the valves near water heaters, under sinks, and behind toilets. Are they corroded? Do they work? A valve that won’t shut off can turn a small repair into a much bigger job—and sometimes require shutting off water to the entire property to replace it. Across many units, those costs can add up fast.
Look at the gutters and downspouts. Does the property have properly sized gutters, such as six-inch commercial gutters where appropriate? Are they clear and in good condition? Check where the downspouts release water. Ideally, water should be directed at least 10 feet away from the building where the site allows. If it drains beside the foundation, water can collect around the building, contribute to crawlspace moisture or water intrusion, and potentially damage the structure over time.
Look at smoke and carbon monoxide alarms. Are the alarms present, working, and placed where they’re required? The U.S. Consumer Product Safety Commission recommends smoke alarms on every level, inside bedrooms, and outside sleeping areas. Fuel-burning appliances, including gas furnaces and water heaters, can produce carbon monoxide, so make sure the property has the required CO alarms as well. Placement requirements can vary by building and local code.
Check the utility closets. If a gas furnace or water heater is inside a closet, look at how the appliance gets the air it needs to operate safely. Don’t assume that a louvered or vented door is always the right fix; have the setup checked against the appliance requirements and applicable code.
And, of course, don’t overlook the major systems: HVAC equipment, water heaters, and the roof. Those are obvious items for a qualified inspector to evaluate, but they’re also important to understand when you’re estimating future repairs and operating costs.
These are the kinds of details I want to understand before purchase, while there’s still time to factor them into the decision and the budget. An inspection is an important part of due diligence, and a property manager’s unit-by-unit perspective can help uncover practical operating costs that affect the property after closing.
At Turn Key Property Management, we look beyond the rent roll. We want to understand what it will take to operate the property safely, maintain it well, and protect the investment.