How to inspect your property in preparation for a sale or refinance
Find a quality buyer or secure an investment quickly with these tips from our experts
When it comes to selling or refinancing a multifamily asset, preparation is key. You can make a huge difference to the sale price or refinance value when you thoroughly inspect your property and identify areas for improvement.
As a multifamily owner, an inspection is essential before sale or refinance: it gives you the opportunity to rectify any issues that might put off potential buyers or lenders. It’s also worth conducting annual or regular inspections of your units and property, so you can identify and resolve any small issues before they become bigger problems.
Drawing on our years of experience helping multifamily owners maximize their return on investment, we explore what you must look out for when you inspect your property.
Small water leaks that happen over the course of several years can cause substantial damage to baseboards, cabinets and flooring. If left untreated, they can also drip through stories and cause damage to multiple units. Air conditioning drain lines are a common culprit. Untreated leaks can rot wood, support beams and drywall, and cause organic growth to appear in the units. Prevent damage by spotting them when they’re newly formed leaks — check your property thoroughly for new stains on walls and ceilings and listen for dripping noises.
Door and window seals
Keeping seals around your doors and windows in good order will not only help with utility costs, but can also improve the general feel and aesthetic of your property. Water leaking through doors and windows is very common in the wet Florida weather, and can lead to rotten window frames and baseboards. Check your seals regularly to make any repairs easier and less costly.
Bonus tip: check that all of your door and window locks are working well. It creates a bad impression for buyers when the locks are difficult to use when accessing units within the property.
Stains and marks
Drip stains and watermarks in your property are bad news. No matter how old they may be, they’ll look fresh to a buyer. Stains can also give a bad reflection of how you maintain your units to prospective tenants. Once you have made sure the stain isn’t from a current leak, paint or replace the stained areas to improve your property’s visual appeal.
A property that looks neglected is a big turn-off for buyers. Make sure common areas are well-maintained and landscaping is well-tended. Checking the general appearance of your property regularly will also help show your property in the best light when potential new renters come for viewings.
Identifying small issues and performing preventative maintenance can save you a lot of money in the long run, as well as helping you secure the best return on investment when you choose to sell. If you’re thinking of making larger changes to increase the property value, be sure to read our capital improvements blog, where we explain which improvements are worth the investment.
The team at 100Units.com has helped thousands of clients close more than $100 million in multifamily property transactions. From determining the listing price, to selecting the best buyer and handling the sale process through to the closing, we’ll facilitate a smooth transaction for you. Learn more about how we can help you here.
You can learn more ways to successfully prepare your multifamily asset for sale in our previous blog. For more multifamily investor insights and new property tours, visit our YouTube channel.