Selling an apartment building in Canada can be complex. Interest in multi-family properties isn’t the same as it is for typical homes. Usually, buyers view apartment buildings as investments, attracting a different kind of buyer than you find with traditional housing. Plus, you’re dealing with multiple units and a unique set of rules and laws. If any of them have tenants, you have to be cautious at every step. Otherwise, you might make a costly mistake. But that doesn’t mean you can’t sell your apartment building successfully. If you want to make the process simpler, you can. Here are five tips for selling an apartment building in Canada that can help.
Review Your Leases and Landlord-Tenant Law
Some prospective buyers look for apartment buildings as financial investments. Others intend to live in one of the units.
If you’re dealing with investors, having rock-solid leases and a full building with competitive rent prices could be a selling point. It may guarantee them a level of income, making the purchase more attractive.
With the latter, whether there is a suitable unit available can impact their buying decision. If they can’t get into an apartment that they’d like to call their own, they may decide to move onto another property.
If there are tenants in your multi-family property, you need to review the leases. Since each tenant may be living under different lease agreements, review each one separately. Check for move-out clauses, remaining term lengths, and other details.
Tenants also have specific rights, many of which are outlined in the agreement. However, they are also protected by local landlord-tenant laws, which you’ll also want to research before selling.
By doing your research, you’ll know whether a buyer can get into their preferred apartment or if they’ll have long-term tenants in place after the sale. That way, you can target the right kind of buyer and use what you’ve learned as a selling point.
Assess (and Improve) Your Curb Appeal
Curb appeal matters when you’re selling a property, especially apartment buildings. The exterior doesn’t just impact the property’s value; it also impacts the renter’s perception. When the curb appeal is squared away, the owner may have an easier time securing tenants or might be able to charge higher rent prices. That makes the property a more attractive option.
If you want to assess the curb appeal of your multi-family building, start by taking photos of the exterior. With pictures, it’s easier to examine the overall look, as you can see more of the space at once.
After that, look for areas to improve. Address issues with the landscaping, update or repair exterior signage, clean up the parking lots, and make sure everything looks well-maintained.
Gather the Right Documents
You’ll need some operational records to show prospective buyers. Gather information about the annual expenses, yearly rent collections, and similar details. That gives buyers critical information about what to expect. Since there’s a good chance that they’ll want to review those records, having them ready in advance is a substantial time-saver.
It’s also wise to gather copies of any transferable warranties that are still in effect. Warranties may give buyers peace of mind, so it’s wise to include them.
Additionally, collect information about any major systems or improvements. Note the age of the roof, critical mechanicals, unit appliances, and certain finishes with limited lifespans, such as carpeting.
If you have all of that, you can be upfront about the state of the building. Plus, if there are warranties and newer items installed, that may increase your sale price.
Schedule a Seller’s Inspection
While property inspections usually happen on the buyer’s end, getting a seller’s inspection is a great move. It lets you know if there are any issues that you should address before taking offers or if problems may affect the value of the property if you sell as-is.
A seller’s inspection ensures you’re informed before a buyer enters the equation. Plus, it lets you handle issues proactively, leading to higher sales prices and fewer issues during the transaction. If the inspection report is positive, then you can use that to help sell the building. If the report had several problems that you rectified, then it’s also a good idea to get the inspector to update the report based on your improvements so you can show a better report to prospective buyers. The inspector will probably update the report at a low cost compared to the price of doing a full inspection.
Sell to a Direct Sale Company
If you’re selling an apartment building and want to handle it fast, working with a direct sale company like GTA House Buyers is an excellent move. You’ll be able to sell without a realtor, allowing you to avoid listing fees and commissions. Plus, we’ll take the property as-is, so you won’t have to worry about repairs, curb appeal, or other expensive steps. We are investor buyers who are always buying.
Selling an Apartment Building in Canada? GTA House Buyers Can Make It Easy
When you’re ready to sell your apartment building, GTA House Buyers can make the process fast and efficient. Plus, you won’t need a realtor and don’t have to worry about any repairs, so you’ll save money.
If you’re selling a multi-family property in Canada, call GTA House Buyers at (647) 848-7790 or contact us online to see how selling to us is the fastest, easiest, and most cost-effective option around.