Ready to cash in on your commercial and rental property investments? Look no further than [Your Company Name], your one-stop shop for a seamless and profitable exit. Whether you’re looking to sell a bustling office complex or rent out a cozy apartment, we have the expertise and resources to maximize your return.
Selling Rental and Commercial Property
When selling rented single-family homes it is easier to sell a vacant home. It is also easier to get a higher price for a single-family home if vacant. This is because the home can be cleaned, painted, decorated and staged to show at its best. There will be few limitations on showings. There will be no tenant present to potentially make buyers feel uncomfortable. If a potential owner / occupy wishes to purchase the home they don’t need to deal with an existing tenant.
Legally all rental laws need to be followed. Morally if a tenant’s lease is not being renewed due to a sale you need to know that tenant’s life is being turned upside-down.
When selling multi-unit residential and commercial properties the higher the net income the more the property is worth. The value is closely tied to the CAP rate. The CAP rate is the net return as a percentage of the purchase price.
If the current rents are not all they could be then advertising a realistic potential rent is possible. This is called Pro-Forma rent. If this is done it is best to have 1 vacancy that is dressed to its best to show potential buyers how nice the units can be, therefore justifying the higher Pro-Forma rent.
The quality, condition and age of the property, the certainty of future income, the desirability of the neighborhood and current interest rates all determine the value less of course existing liabilities and deferred maintenance.
The most desirable properties in the most desirable areas will sell for as much as a CAP rate of 1% under current mortgage rates and the least desirable properties in the least desirable areas will sell for as little as a CAP rate 3% over current mortgage rates. Even these numbers will be pushed in extreme circumstances.
Example: Given 4.5% current mortgage rates, a property annually netting $100,000 can sell for as high as ($100,000 ÷ (4.5% – 1%))= $2,860,000 or as little as ($100,000 ÷ (4.5% + 3%))= $1,330,000 – $100,000 in deferred maintenance = $1,230,000. Again, even these values can be pushed in extremes.
When to sell: Neighborhoods being gentrified in a good way, population influx and declining interest rates all increase property values. The opposite decreases property values.
Selling with Expertise:
- Market Savvy: Our team of seasoned real estate professionals has their finger on the pulse of the market, ensuring your property is priced competitively and attracts the right buyers or tenants.
- Strategic Marketing: We don’t just list your property, we market it. From captivating visuals to targeted campaigns, we’ll showcase your property to the ideal audience, generating maximum interest.
- Negotiation Prowess: Leave the tough talk to us. Our skilled negotiators will secure the best possible terms for you, whether you’re aiming for a quick sale or a long-term lease.
- Streamlined Process: We’ll handle all the paperwork, inspections, and legal matters, taking the stress out of selling or renting your property.
Renting for Reliable Income:
- Tenant Screening: We meticulously screen potential tenants, ensuring responsible and reliable occupants for your rental property.
- Lease Management: From drafting airtight contracts to collecting rent on time, we’ll handle the day-to-day operations, leaving you free to enjoy the steady income.
- Maintenance Coordination: We have a network of trusted repair professionals, ensuring your property stays in top condition and attracts quality tenants.
- Market Analysis: We’ll provide insights into current rental rates and trends, helping you set the right price to maximize your rental income.
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Why Choose New Standard Realty?
- Proven Track Record: We have a history of successful sales and rentals, exceeding client expectations and maximizing their returns.
- Personalized Approach: We understand your property is unique, and we’ll tailor a strategy that fits your specific goals and timeline.
- Transparency & Communication: We keep you informed every step of the way, ensuring you’re always in the loop and confident about your decision.
- Unwavering Support: We’re your trusted partner throughout the entire process, providing guidance and support whenever you need it.
Ready to unlock the full potential of your commercial and rental properties?