Present Statistics to Draw Potential Buyers to Your Multi-Family Property
Whether you got into a multi-family property to make your first mark in the real estate investment industry or just because you saw a terrific opportunity for a beautiful property, there comes a time during anyone’s course of ownership when selling the property becomes a necessity. For some, that happens a short while into the process and for others, it could be decades down the road, but that day does come for all property owners of multi-family homes.
For some owners, especially those that have owned the property for an extended period, this immersion back into the real estate selling process that involves several investors and other similar groups can come as a rude awakening to the amount of work and effort that must be put into getting a multi-family home up to snuff for a potential new owner. However, part of that work can be done through the gathering of statistics and other information on the property that will make it attractive to potential buyers.
Develop a Renting History
One aspect of a multi-family home’s potential sale that can be sometimes overlooked by sellers is the importance of a rental history in communicating to a potential buyer whether a particular property sees turnover or is able to hold on to its tenants for a long time. Should a property show that it is indeed able to hold on to renters (and their monthly rent checks), the value of the property will rise and is a strong indicator of a good location or other attractive feature renters have responded to.
While an investor is likely to do this kind of background research independently, providing the information is a good-faith attempt to offer solid evidence to back up the price you have asked for the property. Instead of waiting for an investor to verify the profitability of a particular property, you have instead taken a proactive step to show that value up front, a step that is valued by investors and can net you a successful sale much quicker.
Log Your Expenses
Of course, the other half of the profitability equation is the expense that has to go into a property to keep it in good condition. That expense varies by property and no two homes are alike when it comes down to what exactly it takes to keep renters happy. Keeping an active log of the money you put into the property will complement a renting history well and give a potential buyer that full perspective of the property when it comes down to evaluating profit potential.
Do not be afraid to mark down everything. It may seem less than desirable to show a large payment for a water heater, for example, but doing so will give a potential buyer not only an honest look at what it takes to run the property, but also the knowledge as to the age of various features of the home. Just as you’d be interested to know that a used car you’re interested in just got new brakes, so too is a potential buyer interested in the recently updated features that will likely not have to be tended to upfront.
Though it can take a few years or a few decades to get to a point where you need to sell your multi-family property, that day will come and when it does, you should be prepared to offer hard evidence as to the financial state of the home. This evidence will help your home sell quicker, show true value to a potential buyer, and land you the sale price you’re looking for.