Purchasing a multi-unit property involves significantly more complexity than buying a single-family home. Thorough due diligence protects you from inheriting costly problems and ensures the investment performs as expected. At Murray Immeubles, we guide investors through comprehensive verification processes that uncover hidden issues before closing.
Verify All Income and Expense Documentation
Never rely solely on seller-provided income projections or verbal claims. Request at least two years of actual financial records including bank statements showing rent deposits, expense receipts, and tax returns reporting rental income. Compare claimed rents against current lease agreements and market rates for comparable units. Scrutinize expense records for missing categories or unusually low amounts that suggest deferred maintenance. The financial analysts at Frederic Murray Properties help investors identify red flags and inconsistencies that inexperienced buyers often miss.
Review All Existing Leases Carefully
Existing leases transfer to the new owner upon purchase, binding you to their terms regardless of your preferences. Review each lease for rent amounts, payment dates, included services, lease expiration dates, and any special arrangements or concessions. Identify below-market rents that may indicate problematic tenants the seller wants to retain. Check for unusual clauses that could limit your management flexibility or create future legal issues. The leasing specialists at Frederic Murray Location and Frederic Murray Rentals can evaluate lease quality and tenant profiles before you commit.
Conduct Comprehensive Physical Inspections
Multi-unit buildings contain complex systems requiring expert evaluation beyond standard home inspections. Hire specialists to assess the roof, foundation, electrical systems, plumbing, heating equipment, and building envelope. Request inspections of all individual units, not just common areas or representative samples. Identify immediate repair needs versus long-term capital planning requirements. Budget accordingly for any deficiencies discovered during inspections. At Murray Immeuble and Frederic Murray Estates, we maintain relationships with qualified inspectors experienced in multi-residential buildings.
Research Municipal Compliance and Zoning
Verify the property complies with all applicable building codes, fire safety regulations, and zoning requirements. Request certificates of compliance and review any outstanding violation notices or required remediation work. Confirm the current use matches zoning designations and that no illegal conversions exist. Check for pending bylaw changes that could affect future rental operations or expansion plans. The regulatory experts at Frederic Murray Immeubles navigate municipal requirements and ensure clients understand their compliance obligations before purchasing.
Investigate the Property’s History and Reputation
A building’s history reveals patterns that impact future performance. Research previous sales prices, ownership duration, and reasons for selling. Check for past insurance claims indicating water damage, fires, or liability incidents. Search online reviews and community forums for tenant complaints or neighborhood concerns. Speak with neighboring property owners about any issues they have observed. The investigative approach practiced by Frederic Murray Management and Frederic Murray Homes uncovers information that protects investors from repeating previous owners’ mistakes and ensures you enter your investment with complete awareness of what you are acquiring.
