5 Tips for Selling Your Multi-Family Property in Jacksonville

Multi family homes are a popular type of investment, offering multiple rental income streams from a single property. But selling multi family real estate can be challenging. There are more people involved than in the sale of a traditional residence. The law is strict about how you treat your tenants. And potential buyers will look at your property for its production, as well as its value, so good record keeping is a must. 

Multi-family properties are in demand in Jacksonville, FL, but a great deal of consideration must be paid to the sale to ensure you don’t stay afoul of Jacksonville’s laws, codes, and ordinances, as there are many restrictions by which the landlords must operate. 

If you do decide that selling your multi family property in Jacksonville is the best option for you, check out these 5 quick tips we’ve put together to help you get the most out of your sale. 

Check the Lease

When you set about selling your multi-family property in Jacksonville, the first thing you need to do is open all of the leases and do a thorough review, ensuring that you’re considering all of your tenants’ rights. In most circumstances, leases must be honored even once a unit is sold, so you are effectively transferring your rights as a landlord to the prospective buyer. 

A firm understanding of when your leases expire will help in your negotiations, as many buyers prefer a “performing” multi family property for rental purposes. “Performing” means that all units are rented, and that rents are being paid on time. The listing price for a performing vs non-performing multi family property is typically much higher. However, it’s important to note that having leases isn’t always a good thing. If you are renting your units under market rent, buyers will adjust their offering price for the potential income loss. 

Additionally, buyers will typically request access to your tenant files, so you’ll want to be doubly sure everything is in order. Ensure you can provide copies of your leases as is required by a real estate contract before signing any agreements. 

Prepping

Selling a multi family property isn’t that different from selling a private residence. The only exception is your tenants. Unless your rentals are vacant, your tenants aren’t going to be able to provide access at a moment’s notice, every time a prospective buyer wants to view the property. 

Additionally, it’s unreasonable to expect your tenants to upend their lives to keep their units looking as neat and clean as you’d want prospective buyers to see. 

Instead, plan ahead of time and schedule exterior maintenance and yard work before putting your multi family home up for sale in Jacksonville. Keep the yards neat, trees trimmed, and beds free from weeds. Touch up exterior paint to ensure everything looks fresh. 

Speak with your tenants and explain the situation. Many times they won’t be happy that you are selling the property, as it may disrupt their lives, but there are fewer fireworks when landlords are up front and honest. Additionally, letting your tenants know that you are looking for a buyer can help ensure they provide you access to a clean and tidy unit at least once for professional photographs. 

And professional photographs are a must. There are fewer buyers looking for multi-family properties in Duval County than single family homes, so ensuring your property stands out is the best way to keep offers coming in. 

Documents

A multi family unit is often run like a business, with strict accounting of funds coming in and going out. Prospective buyers will want to take an in-depth look at the financials behind your property. It’s highly advisable to keep a clear ledger of all security deposits, payments, and expenses, so that buyers can easily see the cash flow potential. 

Additionally, if there are any warranties, permits for recent work, or other legal documents, a buyer may with to retain them for his records. The more prepared you are to provide documentation, the more seamless a sale you’ll have. 

Inspections

Most landlords do routine inspections of their properties, so your tenants will understand the intrusion. But, it’s important to speak with them ahead of time to ensure there aren’t any delays or hard feelings. An angry tenant can derail a sale quickly. 

If you have professional inspections performed by your property manager or a contractor, provide those reports to potential buyers. Being transparent about the repairs and defects of a property helps buyers feel comfortable that there isn’t something worse lurking around the corner, and helps keep you and your business safe from lawsuits. 

Remember, this isn’t meant to be an open house. Respect your tenants rights and privacy to ensure you stay on the right side of the law when selling. 

Direct Sale

Sell directly to Duval Home Buyers, LLC – we buy whether or not you have tenants!  At Duval Home Buyers, LLC, we purchase properties as-is for cash, so closing is fast. There’s no need to worry about sprucing the place up, or completing repairs, or paying holding costs while the property lingers on the market. The professional buyers at Duval Home Buyers, LLC will go over the numbers with you, ensuring our offer is fair. Working with Duval Home Buyers, LLC makes selling your multi-family property in Jacksonville easy! Call Duval Home Buyers, LLC at 904-346-0600 or send us a message today.