Selling a Multi-Family

Selling a property with multiple units can be a unique challenge, especially if it’s your first time. “It’s not just a real estate transaction,” says Jennifer Darby Metzger, Broker/Owner of ERA Justin Realty, “It’s a business transaction.”

There are things owners of multi-family units, especially ones with apartments that are currently rented with long term leases in place, should know before putting their property on the market.

Danielle Sette and Jessica Davidson of Team Sette/Davidson at ERA Justin have a few tips.

The more on top of your property you are, the easier it will sell. “Proactive landlords who update and renovate in between tenants have a higher return on their investment,” says Danielle, “Not only do they get more money through monthly rentals, but some buyers want a turnkey property,” adds Jessica, “They get instant income at market value the day they close.”

However, some buyers would prefer the units are unoccupied, especially if their rent hasn’t increased in some time.

“Having long term tenants at below current market rents can be an issue when selling an occupied multi-family home,” says Jessica. Agents suggest sellers take a hard look at their rental incomes when deciding when to sell and how to price their property. “Keeping current market rent is imperative to the pricing structure when dealing with multi-family homes,” says Danielle.

However, upping rents right before listing might not be the best idea. “In some cases, your renters will need to be available for showings,” says Jessica, “Showings can be difficult when tenants do not cooperate.”

“It’s also important to keep up to date on state inspections and registering rents annually with your town,” says Danielle. “This makes getting a Certificate of Occupancy easier when selling, and the process of passing the property on to new owners more smooth.”

Bottom Line: Selling a multi-unit property comes with its own set of challenges. Team Sette/Davidson or any of the agents at ERA Justin Realty can help. Call us at (201) 939-7500.