During escrow, in accordance with prudent real estate investing practice, of course, you did your due diligence. You walked through each apartment unit, had the building inspected for everything from pest and dry rot to electrical, and generally surmised that the rental property would be a good income producer and real estate investment opportunity.
Over the next several years, however, you essentially sat back and collected the rent. You made no provision to inspect the units. As long as the units were occupied with good-paying tenants, you were satisfied not to periodically inspect the units.
Okay, then you made the decision to exchange your real estate investment for a newer, larger apartment complex, and listed it for sale with a popular real estate agent who understands income-producing property. And to your delight, within just two weeks you get an offer, accept it, and set up a time for the buyer to walk through and inspect the interiors of each unit.
To your dismay, however, you discover that your tenants, though careful to make their rent payments on a consistent basis, had little regard to carefully maintain your property. During the inspection, you are surprised with the buyer to see a stack of tires in one unit, multiple bleach marks on the carpet of another, one unit painted totally in the color pink, and so on. When it's over the buyer, of course, terminates the offer and goes away.
This does happen. I've seen it happen. Some real estate investors simply get lulled to sleep by tenants who are not disruptive and pay their rent on time. With no red flags waving, some landlords simply feel no need periodically inspect the units and suffer the consequences.
Prudent real estate investing requires you to know what's going on behind the closed doors of your rental income property. Landlords must schedule a walk through of their income properties maybe twice, but no less than once a year. It might not prevent everything tenants have been known to do, but it helps.
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