We open on Gus confronting Shawn about the money he owes him for the weekend retreat Shawn took Juliet on. Shawn says he's desperately trying to earn money to pay him back, but casework has been scarce. Gus suggests that Shawn sell the engagement ring he never gave Juliet. But Shawn isn't having it; that was his grandmother's ring, and besides, he wants to keep it just in case.
Lassiter calls Juliet telling her there's been a suicide at the Prospect Gardens, a Santa Barbara condo building. Shawn shows up at the crime scene hoping that there is a case for them to solve so he can earn money to pay Gus back. But unfortunately for Shawn there appears to be no foul play and therefore no case.
Upon taking a closer look at the condo, Lassiter surprisingly says he wants to buy it and move in. In fact, Lassiter does end up buying the place and several weeks later, sends out invites for his house warming party.
Lassiter first meets his neighbor Amy, a nurse who is very welcoming. She also tells him about Lloyd, the building manager, and how he takes care of the rats. Lassiter tells Amy that he's a detective for the SBPD and that he is going to do background checks on everyone in the building just to be sure he's dropped his nest egg on the right place. Amy likes Lassiter's "get things done" attitude and asks him to get Lloyd to replace the awning on the building. Lassiter agrees.
Lassiter loves his new place, however, he hasn't been sleeping due to the strange noises and creepy occurrences that have transpired since moving in. In fact, Lassiter is so creeped out by the new place that he hires Shawn and Gus to investigate the disturbance. From Lassiter's story, Shawn and Gus believe that the place is haunted and immediately agree to take the case.
Shawn and Gus show up at Lassiter's condo at 6 PM that night dressed in Ghostbusters attire. Their plan is to stay the night in Lassiter's condo to investigate any possible disturbances.
Shawn and Gus are first greeted by Lassiter's neighbors: Amy whom Lassiter was previously introduced to, a yuppie couple, an old Korean war vet and Beatrice and Birdie, the identical 70 year-old twins Lassiter believed to be ghosts standing in the hallway the night before.
So far, Shawn and Gus do not see anything suspicious, which in turn drives Lassiter crazy. The guys spend the night at the condo, and to Lassiter's shock, end up sleeping like babies. However, in the middle of the night, Lassiter is awoken by the sound of his imprisoned girlfriend Marlowe's voice. Knowing she couldn't possibly be there with him in the condo, he gets out of bed to investigate the noise. He walks into the bathroom to discover the shower has been turned on. He then stares at himself in the mirror, but doesn't recognize himself. He's wearing a beard and is confused beyond belief. The next thing he knows, he's back in bed, getting yelled at by Shawn and Gus, telling him to get in the bathroom because the light fixture has mysteriously filled up with blood.
The next day, Woody has the blood analyzed and discovers that it doesn't belong to a human, but to an animal. This puts Lassiter's mind to rest; a rat must have gotten stuck in the attic and died. That explains the blood and the noise.
Shawn and Gus are not convinced, so they follow a lead to the yuppie couple's condo to see if they were staging a haunting in Lassiter's condo so that they could buy it and expand their own condo.
The yuppie couple lead ends up being a dead end, so Shawn and Gus pay a visit to the building's manager, Lloyd. Shawn and Gus approach Lloyd's place just as Amy is leaving it; she was there asking Lloyd for another repair. When Shawn and Gus enter Lloyd's place, they are met with a mess. In fact, the place looks like a hoarder lives there.
Shawn and Gus tell Lloyd they believe that someone is trying to scare Lassiter out of his condo. To their surprise, Lloyd says that he agrees with them and that he knows who it is. Lloyd tells them he believes Condo 536 is cursed, saying every sound man that has moved in there has ended up going crazy. He believes the curse is within the walls of the condo.