Title Red Flags in Airbnbs and Investment Properties

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Article Summary:

Pittsburgh and surrounding areas are seeing a surge in duplexes, small multifamily buildings, and short-term rentals, including Airbnbs, driven by investor demand and the 2026 NFL Draft. These investment properties carry specific title risks, including:

• Zoning compliance issues

• Missing or incorrect certificates of occupancy

• Unpermitted renovations or conversions

• Boundary disputes and easements

• Liens, judgments, and municipal debts

• HOA or condo restrictions

• Unverified rental income or tenant leases

Working with a qualified title agency or real estate attorney, such as the attorney-owned Clover Lane Settlement Services affiliated with Fiffik Law Group, helps buyers, sellers, and realtors manage these risks and ensure smooth investment property transactions.

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Pittsburgh is experiencing a significant rise in duplexes, small multifamily buildings, and short-term rentals being purchased as investments. Data shows the region now has more than 4,500 active Airbnb and short-term rental listings, and demand is expected to grow even further because the 2026 NFL Draft will be hosted in Pittsburgh, driving event-related tourism and short-term rental bookings. Multifamily building permits have also increased, reflecting growing investor interest, especially among first-time buyers looking for affordable entry points into rental real estate.

If you or your clients are considering joining this trend and investing in Pittsburgh’s duplexes, Airbnbs, or other small multifamily properties, it’s important to understand the title risks associated with these investment properties. These risks can disrupt or delay a closing if they are not identified and managed early with the help of an experienced title agency or real estate attorney.

Zoning Compliance Problems

Investment buyers often assume that if a property has been used as a duplex or short-term rental in the past, it must be legal. Pittsburgh’s zoning rules vary by neighborhood and may restrict:

• multi-unit use

• short-term rentals

• owner-occupancy requirements

• parking minimums

• density restrictions

What To Do: Work with your title agency or attorney to review zoning records and confirm the property’s current use aligns with local regulations. Early review helps prevent financing or occupancy issues and ensures compliance for investment properties.

Missing or Incorrect Certificates of Occupancy

Older Pittsburgh properties frequently have missing, outdated, or incomplete occupancy documents. A property may have been converted to multiple units decades ago without proper approval.

What To Do: Have your title agency or attorney obtain and review occupancy certificates. If documents are missing, they can help negotiate responsibility for obtaining them or adjust timelines to protect the buyer.

Unpermitted Conversions or Renovations

Investment properties often undergo work intended to increase rental income — basement apartments, attic bedrooms, room reconfiguration, separate entrances, decks, or bathrooms. When these improvements are unpermitted, they trigger risks such as:

• code enforcement action

• insurance coverage issues

• lender concerns

• reduced property value if the work must be undone

Unpermitted units are especially common in duplexes and small multifamily houses in older neighborhoods.

What To Do: Compare the physical layout of the home with municipal records. If the property has more units or bedrooms than the city recognizes, involve a qualified title agency or attorney immediately to determine next steps.

Boundary Issues and Easements

Many Pittsburgh neighborhoods include shared driveways, retaining walls, alleys, or parking areas. Some of these arrangements exist only under informal agreements that are not recorded, which can create disputes for new owners.

What To Do: Have your title agency or attorney review all easements, recorded agreements, and municipal records. They can help formalize or clarify arrangements when necessary.

Liens, Judgments, and Municipal Debts

Investment properties are more likely to carry unresolved obligations, including:

• unpaid municipal bills

• mechanics’ liens from renovations

• judgments against prior owners

• liens arising from code violations

These debts can attach to the property and must be cleared to deliver marketable title.

What To Do: Your title agency and attorney can identify outstanding liens during the title search and work with the parties involved to resolve them before closing.

HOA or Condo Restrictions

Condos and townhomes may have rules limiting rentals, capping the number of units that can be rented, or restricting short-term rentals altogether. Policies may change, and litigation can impact usability.

What To Do: Review HOA or condo documents with your title agency or attorney before closing to ensure the property can be used as intended.

Unverified Rental History or Income

Seller-provided Airbnb revenue, tenant leases, or rent rolls may be inaccurate or incomplete. Leases may be invalid or tenants may not be legally recognized, creating financing or operational issues.

What To Do: Confirm rental income and tenant details with the assistance of your title agency or attorney. Cross-check with municipal records to verify occupancy.

Investment properties, duplexes, and short-term rentals offer excellent opportunities in Pittsburgh’s growing market but carry unique title risks. Identifying these risks early can prevent delays, disputes, or costly surprises at closing.

If you or your clients are considering purchasing or selling an investment property in Pittsburgh, working with an attorney-owned title agency like Clover Lane Settlement Services, in coordination with our affiliated law firm Fiffik Law Group, ensures these issues are handled professionally. Contact us today to learn how we can help your next investment property transaction close smoothly and confidently.