While selling a multi-unit property has some similarities to selling a single-family home, there are still many differences that sellers must keep in mind for a successful sale. If you’re planning to put a multi-family home on the market, here are four tips you should know before getting started.
Review Tenant Leases
A major factor that sets selling a multi-unit property apart from single homes is the presence of tenants. You’ll need to go over the leases, rental contracts, and much more. However, selling a property with tenants raises several legal questions that can be tricky to answer. In some cases, it’s best to wait for each dwelling to be unoccupied before putting your property on the market, as it will prevent any home showing problems. If you do need your tenants to move out eventually, you are legally required to give them notice in advance within 30 to 60 days.
Additionally, you may want to wait for one or more tenants to leave so that the new owner has somewhere to live. Some multi-house property owners like to live in one of the units and, when doing so, can take advantage of a loan with a lower down payment if they move into the property within 60 days of the closing date. If you have tenants that have yet to move out, the new owner won’t be able to take advantage of this opportunity.
Finish Inspections Early
Many locations require numerous inspections before owners are able to sell a multi-unit property, including a renewal of the certificate of occupancy. This inspection validates that the building is up to date on safety codes and is safe to live in — but unfortunately, it’s not always easy to obtain. It’s possible for your region to experience an inspection logjam, forcing the date of your inspection to be rescheduled at a later day in the future. As a result, it’s in your best interest to get a head start on scheduling the certificate of occupancy and other home inspections early on. Additionally, finishing the necessary inspections before listing the property can lower the chances of a real estate closing delay, making this one of the first things you should do when selling a multi-unit property.
Gather Essential Documents
Proper documentation on hand is vital when selling any home. If you plan on selling an apartment or multi-unit property, having access to essential financial documents will allow potential buyers to read and review them. Some of the paperwork you should gather ahead of time includes:
- Yearly net operating figures
- Warranties
- Age of the roof and HVAC appliances
- Property management fees
- Homeowners Insurance
- Certificate of occupancy
- Tenant-related documents, such as security deposits
Don’t Forget Maintenance and Curb Appeal
Given how many multi-home buyers purchase properties as an investment, it is crucial that living units are properly maintained prior to putting them up for sale. You’ll want to ensure all the plumbing and electrical systems function properly, as well as check that the doors and windows are in good working order.
Tidying up is essential no matter what kind of home you’re putting on the market. In other words, it’s best to make your property as presentable as possible. Take the time to properly mow the lawn and hire landscaping services to spruce up the exterior. Planting flowers in the garden or window boxes can contribute to its overall curb appeal.
Call The Mike McCann Team Today
Whether you’re selling an apartment or searching for homes for sale in Main Line, PA, The Mike McCann Team will be by your side every step of the way. We help home buyers and sellers across numerous communities, including our Society Hill, Philadelphia, real estate. For further information, contact us today to schedule your appointment.
