Okay, you just closed escrow on a multifamily apartment building. 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.

Afterward, over the next several years, you essentially sat back and collected the rent. You made no provision to inspect periodically the units that your tenants occupy. 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.

To your delight, within just two weeks you get an offer, accept it, and set up a time for the buyer to inspect the apartments. Just the way you did when you purchased the building, with an interior inspection requiring the buyer to walk through each unit.

To your dismay, you discover that your tenants, though careful to make their rent payments on a consistent basis, had little regard to carefully maintain your property. You are as surprised and disgusted as the buyer is 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.

This does happen. When real estate investors become owners of income property, some get lulled to sleep by tenants who are not disruptive and pay their rent on time, and therefore feel no need inspect the units periodically.

Prudent real estate investing, however, requires you, as the CEO of your investment enterprise, to know what’s going on behind the closed doors of your rental income property. Always schedule a walk through of your income properties maybe twice, but no less than once a year. It might not prevent everything tenants might be prone to do, but it helps.

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