Buy Occupied Apartment Buildgin

[Dan Robinson]

I've got a contract on a small apartment building in DC that is partially occupied. I'd like to eventually facelift the units and raise the rents. I'm aware of the TOPA requirements, and I have clauses in the contract that the seller must provide copies of leases and security deposits. It will fall under the rent control requirements for DC. Any advice for other actions to take to ensure a smooth handover and/or tips on how to encourage current residents to move along so that I can remodel and raise rents besides buying them out?

[Russell Brazil]

@Frank A.

If you dont own any other units in DC, then yes. You have to do some paper work with DCRA to get your rent control exemption. Youd also want to be careful about a drastic rent raise, as a judge could conceivably view it as a constructive eviction.

Also be aware that occupied multifamily properties are subject to TOPA. So the tenants have the legal right to blackmail the seller or buyer for money to waive the TOPA rights.