When it comes to acquiring or managing multifamily properties, due diligence inspections are more than just a formality; they’re your first line of defense.
Protecting your business from unexpected costs, liability, and operational headaches. Spotting red flags early can save investors hundreds of thousands in repair costs and help avoid risky acquisitions.
In this post, we’ll cover some of the most common and costly red flags to look for during a multifamily due diligence inspection—and how SnapInspect’s digital inspection tools help you catch them with speed and accuracy.
🔴 1. Hidden Mold and Moisture Damage
Mold issues are a nightmare for property owners, not only for health and safety concerns but also for remediation costs. Often, mold is found in:
- Bathrooms and behind vanities
- Under sinks
- Around HVAC units
- Behind baseboards and in crawl spaces
What to do: Always inspect for signs of water damage, musty odors, and staining. Snap photos as evidence and flag these areas in your report.
With SnapInspect: Use custom checklists with mold-specific items and capture high-res photos/videos on-site, directly within the app.
🚧 2. Unpermitted or Illegal Modifications
From converted garages to unapproved room additions, illegal alterations may not comply with building codes and can pose serious structural or safety risks.
What to do: Verify property layouts against original blueprints or permits. Look out for makeshift walls, electrical modifications, or plumbing work done without permits.
With SnapInspect: Instantly document questionable changes and tag them for follow-up review. All reports are time-stamped and easily shareable with contractors or legal teams.
🧑🤝🧑 3. Occupancy Discrepancies
A unit might be reported as vacant but is actually occupied, or worse, unauthorized subleasing may be occurring. This can affect property valuation, rent rolls, and legal compliance.
What to do: Cross-check tenant rosters with unit inspections. Check for personal belongings or signs of occupancy in “vacant” units.
With SnapInspect: Use inspection notes to log occupancy observations and track inconsistencies digitally for team-wide visibility.
🔌 4. Deferred Maintenance and Unsafe Conditions
Issues like broken handrails, malfunctioning smoke detectors, or cracked stairs are not only costly—they’re potential liabilities. Overlooked maintenance can add up quickly in older properties.
What to do: Walk every unit and all common areas. Take note of anything that violates code or poses safety risks.
With SnapInspect, Standardized checklists ensure no item is skipped. Instantly mark and prioritize issues using severity tags so your team knows what to fix first.
💸 5. Inconsistent Unit Conditions
Unit conditions can vary wildly even within the same building. Some may be freshly renovated, while others show severe wear and tear, impacting rent comparability.
What to do: Rate unit condition consistently using a defined scoring system. Document everything with photos and notes.
With SnapInspect: Leverage digital templates and smart scoring features to generate a unit-by-unit condition matrix for clearer decision-making.
📸 Why Photo Documentation and Digital Records Matter
A written checklist is good. But photo evidence is essential—especially if you need to renegotiate terms, address legal issues, or prioritize renovations post-close.
SnapInspect allows you to:
- Take unlimited photos/videos with each inspection
- Automatically sync visual data with reports
- Share professional PDFs with stakeholders instantly
With cloud-based storage, your entire inspection history is secure, searchable, and accessible anytime, from any device.
✅ Stay Ahead of the Risks
Spotting these red flags early isn’t just about reducing risk—it’s about improving long-term asset performance. With SnapInspect, your due diligence process becomes faster, more accurate, and better documented than ever before.
Ready to make smarter multifamily investments?
Speak to our SnapInspect team today.
