You have done the research and invested in a multifamily property. You may have even kept it for some time, earning monthly cash flows from the rental income. You could have leveraged the property to purchase additional real estate as well. Now, you are ready for the final step, selling your multifamily real estate. These are a few tips to help you.

Evaluate Your Property

Your first step is to evaluate your property. Look over your financials. Do you have an above-average ROI with low costs? Do you receive rental income at or above the current market level? Your mortgage and taxes should also be up to date.

Then, look over your building. Is it up to code? Review your maintenance schedule to determine if anything needs to be fixed. Are your tenants happy? Do you have long-term residents?

Prepare Your Tenants

If you plan to sell your multifamily property, you should let your tenants know. Discuss local regulations that either protect their current lease agreements or allow the new owners to make changes to these agreements. Make sure that they know that the property may undergo some changes under the new management and ownership, but be supportive, optimistic and positive. Make sure they are notified in writing. Build open communication and be honest.

Prepare Each Unit

When you speak with your tenants, set up a time to walk through their units. Ask them about any issues they have and look for potential problems. Review each unit’s routine maintenance schedule. Search for broken or malfunctioning fixtures, appliances, plumbing or wiring. Create a list of all the maintenance done on each unit, including the dates and costs, and list anything else that needs to be addressed.

Look for noncompliance, such as pets, smoking in a nonsmoking building or too many occupants in the unit. Address these immediately as you answer any questions the tenants have about the sale.

Prepare the Building and Exterior

Inspect the outside of the building. Have your roof inspected and replaced if necessary. Look for chipped or faded paint. Fix any broken windows or damaged gutter systems. Create a well-maintained, attractive and safe building.

Then, review your landscaping and parking areas. Replace any dead or dying landscape. Build communal areas with seating and paths. Make sure your outdoor lighting works and is effective. Inspect any external amenities, such as pools or sidewalks. Clean up the area. Also, patch or resurface any cracked, chipped or damaged parking areas and sidewalks. Hide your trash receptacles using fencing or landscaping.

Get the best response to your listing by making sure that your multifamily real estate is clean, safe and well-maintained.