Steps to Take Before Selling a Multifamily Property

Are you the current owner of a multifamily property? If so, and you are ready to sell, one of the first things to understand is that selling a multifamily home is much more challenging and complex than selling a single-family home. One reason for this is because the process involves much more than just the single owner of the single-family home.

When you are ready to sell a multifamily property, there’s a good chance the process will involve six to 12 people. All this depends on the size of the property. In addition to dealing with all the people living in the structure, there are also specific laws, regulations, and rules that apply to owners of multifamily properties. It’s also important to understand that the laws, regulations, and rules will vary from state to state and city to city.

According to industry experts, before you try to sell a multifamily home it’s a good idea to consult with an attorney to ensure you aren’t putting yourself in a situation where you may wind up being sued. If you aren’t fully aware of the regulations, local laws, and rules in place, it could cost you money, time, and make the process of selling even more complicated.

Review Tenant Rights, Occupancy, and Leases

Before you list a multifamily home for sale, it’s important to review all the leases along with the occupancy for every unit. You may find yourself in trouble if you aren’t careful and if you fail to handle this due diligence.

Some of the things you need to consider include what are the terms of the leases, what are the rent amounts for the units, what is included with the rent for each one, are security deposits being held, and are the rents eligible for being subsidized by any type of government assistance. These are all factors that may impact your ability or legal right to sell.

Carefully Prepare for the Sale

Regardless of what type of home is being sold, proper preparation is key. This means improving the curb appeal, cleaning up the common areas and parking areas, and make sure all the locks and doors on the property are working properly.

If you want to successfully sell a multifamily property you own without hassle, be sure to use the tips and information here. Doing so will pay off and help ensure you are not dealing with serious legal issues because you did not handle the process properly.