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Preparing to Sell a Multi-Family Property? Here’s What to Look Out For

May 15, 2020

For a property owner, selling a multi-family property is in a completely different ballpark than selling a single-family home. The main complexity that comes with selling a multi-family home is the presence of more than just one tenant, unlike a single-family home. When selling a multi-family property, the probability that you’re involving more than 6 people is high. This is all dependent on how many units the property holds; this change may be affecting just a couple of families or dozens of families. What are the preparations and obstacles to keep an eye on when you begin the process of selling a multi-family property?

Review Leases, Occupancy & Tenant Rights

It is vital to review all leases and the current occupancy for each unit before even thinking about listing a multi-family property. Multi-family property owners can get themselves into trouble if they are not careful. Keeping current tenants’ rights in mind when selling a multi-family property is very important. In reviewing the leases and occupancy for each unit it can help determine whether or not to sell the property while it has occupants. Selling a property that has current residents can be tricky and it can also bring potential issues into the equation.

Preparation is Key

Preparation is critical when you are putting any type of residential property on the market, whether it’s single-family or multi-family. Multi-family properties are typically purchased as investments, so properly preparing for the sale becomes necessary. One important factor to keep an eye out for is the amount of maintenance the property appears to have. A property that isn’t properly prepared can appear to have more maintenance than it truly does. Something else to keep in mind is that many cities and local governments require that a certificate of occupancy, known as a C of O, is renewed when a multi-family property is being sold to a new owner. Before listing the property, ensure that all inspections have been completed and any issues found are corrected. Below are some helpful tips to prepare your property for sale:

Curb Appeal
– Tending to the exterior of a multi-family property can go a long way. Trim bushes or shrubs and make sure any flower beds are bright and cheerful. Maintaining the landscaping can help the curb appeal of any property.
Common Areas – Depending on the property, there may be common areas for tenants to access, such as laundry or a clubhouse. It is important that all common areas are properly cleaned and maintained. These areas may require extra attention and maintenance.
Parking Areas – If the property has designated parking areas or garage spaces, making sure these are well managed and in good condition is important. If there is an off street parking area, a simple seal of the pavement can go a long way.
Doors and Locks – All doors and locks within the property must be in working order and be working well. It’s not a good representation of the property when the locks are difficult to use and a showing agent is struggling to gain access to a unit on the property.

Preparing to sell your multi-family property, but unsure if it has curb appeal? Maybe the property needs a fresh coat of paint to give it a new look. We can help you out! Contact Alterra Construction Group by calling 615-438-5734 or through our website.