Lesson 28 — Occupancy Determination (How to Decide Occupied vs. Vacant Correctly)

Correctly determining whether a property is occupied or vacant is one of the most important responsibilities in field inspections. Your determination impacts the mortgage company, NMFS, compliance timelines, and whether further action is taken on the home.

This lesson explains exactly how to evaluate occupancy status using NMFS-approved indicators only.

1. Occupancy Is Decided by OBSERVATION — Not Assumption

Your job is to:

  • Observe

  • Document

  • Photograph

  • Report

You are not trying to guess or predict.
Your determination must always be based on what you physically see at the property.

2. Strong Indicators the Property Is OCCUPIED

If you see one or more of the following, the property is likely occupied:

A. Vehicles

  • Cars parked in driveway

  • Vehicles parked in garage (if visible)

  • Tire tracks in fresh snow or mud

B. Active Use Items

  • Trash cans out or recently emptied

  • Toys, bikes, sports equipment

  • Garden hose hooked up

  • Packages or deliveries

  • Curtains or blinds positioned normally (not all closed)

C. Signs of Recent Activity

  • Lights on

  • Air conditioning units running

  • Sounds from inside

  • Television light flicker

  • Notes left on door by other services

D. Yard or Exterior Signs

  • Mowed grass

  • Flowers or plants being watered

  • Decorations or seasonal items

  • No obvious signs of neglect

E. Direct Contact

  • Someone answers the door

  • Occupant verbally confirms living there

3. Strong Indicators the Property Is VACANT

 

Indicators of vacancy include:

A. No Vehicles

  • No cars present

  • No signs of regular parking patterns

B. House Condition

  • Overgrown grass

  • Accumulated debris or trash

  • No curtains or blinds

  • Mail piling up

  • Flyers stacked or stuffed in door

  • Security notices or shut-off tags

C. Utilities

You may observe:

  • Electric meter off

  • Water off

  • Gas meter locked

These support (but do NOT alone decide) vacancy.

D. Structural Conditions

  • Boarded windows

  • Lockboxes present

  • Notices from city or utility companies

E. No Signs of Movement or Activity

  • No lights

  • No sounds

  • No personal property

  • Dusty, unmaintained porch

  • Cobwebs around door handles

4. Indicators That Do NOT Automatically Determine Occupancy

These can be misleading and should NOT be used alone:

  • A car present does NOT guarantee occupancy.

  • A car missing does NOT guarantee vacancy.

  • Grass being cut does not mean occupied (contractors cut grass).

  • Curtains closed do not mean vacant — some people keep blinds closed.

  • “For Sale” sign does not mean vacant.

These must be combined with other indicators to make a valid conclusion.

5. The Occupancy Decision Rule

Use this rule every time:

If ANY strong occupancy indicators are present → Report OCCUPIED.

If NO occupancy indicators are present AND vacancy indicators are strong → Report VACANT.

When indicators conflict:

  • Choose the safer (more conservative) option

  • Document everything clearly

  • Provide detailed notes

6. Required Photos to Support Occupancy Status

If reporting OCCUPIED, include photos of:

  • Vehicles

  • Lights on

  • Curtains, blinds, or window coverings

  • Packages

  • Personal items

  • Foot traffic paths

  • Active utilities (if visible)

  • Front door contact attempt photo

If reporting VACANT, include photos of:

  • Overgrown yard

  • No vehicles

  • Piled mail or flyers

  • Shut-off utility meters

  • Boarded/broken windows

  • Vacant exterior indicators

  • Any city/utility notices

Photos must explain your conclusion without the client needing to guess.

7. Required Notes for Occupancy Determination

Your notes must:

  • State exactly what indicators you observed

  • Support the status selected

  • Match your photos

Examples:

Occupied Example Note:

“Two vehicles in driveway. Curtains open. Recently delivered package on front porch. Grass maintained. Knocked at 1:42 PM—no answer but movement heard inside.”

Vacant Example Note:

“No vehicles present. Grass overgrown. Flyers stacked in door. Curtains removed from windows. Water meter locked. No indicators of recent activity.”

8. When Occupancy Cannot Be Determined

Sometimes the indicators are unclear or conflicting.

Examples:

  • Car present but house looks abandoned

  • Grass overgrown but blinds open

  • Door hanger removed but no other signs of occupancy

  • New construction appearance with no utilities connected

In these situations:

  • Do NOT guess

  • Mark as Unknown (if allowed by the order)

  • Provide extremely detailed notes

  • Photograph every indicator

  • Document exactly why determination could not be made

Clients prefer “Unknown” with detailed documentation over an incorrect guess.

9. Safety Overrides Occupancy Determination

If the property is unsafe to approach:

  • Stop immediately

  • Take photos from a safe distance

  • Document hazards

  • Submit explanation

  • Do NOT attempt contact

Safety always comes first.

Summary

To determine occupancy correctly:

  1. Look for strong indicators

  2. Document what you see

  3. Support your determination with photos

  4. Write clear notes

  5. Avoid guessing

  6. Prioritize safety

Correct occupancy decisions protect NMFS, the mortgage company, and you.

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