Today I’ll share a few things to consider before you convert a multifamily unit into a condo.
Search All Newport Homes on the MLS
Get a Home Value Report for Your Newport Home
If you own a multifamily unit, today I’ll share a few things to consider before you convert it into a condo unit:
1. Depending on the market, you may be able to make more money selling individual units. You’ll first need to make sure that your area will allow you to do this. If you have a six-unit building and you plan to convert it to condos but you’ve been grandfathered in under parking regulations, make sure to find out if you retain your grandfathered status when you do convert it. In Rhode Island, if you convert a multifamily unit into condos, you are substantially changing the use of the building, which will require an update of your fire systems. I can recommend you to a retired fire captain who will go through your property and professionally advise you on what changes you need to make.
2. You must give any tenants notice and first right of refusal. Additionally, you have to sell the same way you would to the public. In other words, you can’t make the public deal better than the tenants’ deal. Also, if those tenants are aged 62 or older, you have to give them a year’s notice. If you have leases already in place, make sure you consult with an attorney experienced in this area. I’d be happy to recommend a few.
3. Buyers are looking for good condition and concise space. They’re not looking for huge properties that require a lot of maintenance, so remember to check in with how your housing association’s rules and regulations match up with your intentions.
If you need recommendations for vendors to help you with your project or you just need some professional advice, don’t hesitate to reach out to me. I’d love to help you.