Whats Better? 4 unit With Leases at a good rate or without?

[Sean Gribbons]

Hi BP people,

Curious as to what is more attractive to multi family buyers more specifically 4 units. Is it more attractive to a landlord to have a lease already in place at a good rate? Or would they prefer a vacant property ready for their lease and their tenant?

Where does everyone stand?

[Anthony Wick]

@Sean Gribbons

I’d prefer four single people, great incomes, no desire

To buy or leave, neat freaks, no pets, no kids, very quiet people, upgraded units, below market value sale, with above market rate rents.

Now, that doesn’t exist. In reality, your question is too general and simplistic. A lot determines what I’d rather have. I’ve inherited good tenants and bad tenants. Clean tenants and messy tenants. And I’ve asked for units to be vacant at close, because I wanted to upgrade them and raise rents.

But, if you’re asking, whatever you do, do NOT sign tenants to long term leases right before listing the property. You want to give the buyer the option to do whatever they want.