Thinking about selling your multi-family property? You might want to prepare your property for sale for a better chance at a quick sale at a higher price. Here are six tips for selling your unwanted multi-family property in Nashville, Clarksville, Columbia, or surrounding areas: 1) update the parking area, 2) add more curb appeal, 3) update the common areas, 4) keep the doors and locks in working order, 5) keep your paperwork in order to keep track of rent payments and analyze the property’s return on investment, and 6) renovate.
The first tip for selling your unwanted multi-family property in Nashville is to improve the parking area. No one enjoys a cracked driveway or potholes. Invest in a seal coating for your parking area, it will make a huge difference in property satisfaction with the tenants. The seal coating will fill in the cracks and create a smooth, clean parking area. If the multi-family property has potholes, this will make it seem like the property is not maintained very well and is inconvenient for the tenants, and may cause damage to their vehicles. An asphalt patch from the hardware store will be a quick fix. Coating and repairing the parking area would be a simple move with a large impact.
The second tip for selling your unwanted multi-family property in Nashville is to step up the curb appeal. Start with a pressure wash to clean off any dirt on the driveway or structure walls. A new coat of paint could do wonders to clean up the look of your multi-family house at a small cost. Have the hedges trimmed, plant some area-appropriate foliage, and add fresh mulch to the plant beds. If you leave the basic maintenance undone, this may convey that the property is difficult to maintain and a real eyesore. A little effort can have a large impact on future buyers’ perception of your property for sale.
The third tip for selling your unwanted multi-family property is to update the common areas. Depending on the property, it may have common areas. These may be areas like porches, courtyards, lobbies, laundromats, and pools; anywhere all the tenants have a right to share on the property. Get some new outdoor furniture, redecorate the lobby, repaint scratched appliances, refresh the signage. This will improve the perception of the property and reflect a clean, maintained property. If you have room, you may want to add a picnic table and a charcoal grill stand. This will convey to prospective buyers you have an attractive development and happy tenants.
Doors and Locks
The fourth tip is to repair any squeaky or broken doors. You will also want to make sure that all of the locks are well oiled and operate smoothly and quickly. You need to make sure that when showing the property, there are no delays in unlocking and opening doors. A freshly painted door is the first thing buyers see before going in and creates their first impression. This also promotes the perception of a well-maintained property.
Paperwork in Order
The fifth tip for selling your unwanted multi-family property in Nashville, Clarksville, or Columbia is to have all of your paperwork in order. You will want to have all of the important documents ready for potential buyers. The list of documents that would be helpful to the buyers would be any roof warranties, HVAC documentation, and receipts of any recent building improvements. Another set of important documents include rent rolls, vacancy report, leases, cash flow, management fees, repairs, and other financial statements. The buyers of multi-family homes will most likely be real estate investors who would need to see the financial statements to determine if the property would fit in their portfolio. Keeping your paperwork in order and readily available shows that you maintain your property and records.
If your property is considered commercial real estate, the buyers will want to see the leases so they can do their due diligence of mailing verification letters to all tenants. The verification letters will confirm current lease periods, rent amounts, and deposits on hand.
Tip number 6 is if you really want to maximize your asset for top dollar, consider renovating the units. This can be just adding new floors like laminate or new paint. Adding new countertops and new appliances for older/worn out ones goes a long way of building value for buyers. Replacing broken or damaged windows make the units brighter, better insulated, and more soundproof. Showers and tubs that are worn and cannot be cleaned, consider replacing those. If your market permits, adding tile really improve the look and value of a rental unit. Adding new light fixtures not only brightens the rooms but also gives the units an updated look and that means more money in your pocket.
Some buyers are more turnkey and will be more willing to make an offer on your property if they can purchase it with little to no effort to fix up the property. They may also be willing to pay a little more than their usual because they didn’t have to do the upgrades themselves. Other real estate investors prefer to purchase multi-family property that hasn’t been brought up to date nor renovated. As part of their investment plan, they will want to make all the improvements so they can increase the caprate and maximize profit.