Selling 4 Family Rental Property

New York, New York
Buying & Selling Real Estate
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Selling 4 Family Rental Property

Rosalie DiPietro
Member since 2022 · 40 posts · 14 votes

I'm going to be listing a four family rental property for my dad. It's a property that I've managed for the past 13 years. The property is in a trust (I am one of three trustees with my brothers) and we'll be doing a 1031 exchange into a DST.

Property is located in the Bensonhurst section of Brooklyn NY 11214. The primary buyers in this area are currently Asian who come in and gut renovate, installing separate, tenant-paid, heat and hot water.

Question: There are currently three remaining tenants. All four apts need renovation and the remaining tenants pay below market rents.

Should I try to sell the property with the current tenants or should I ask the tenants to leave (I'll need to give two tenants up to 90 days to leave and one tenant up to 30 days, as per NYC law) and then list the building as empty and ready for renovations and new, market rate tenants?

Thanks for your input!

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Abel CurielBusiness Member
Real Estate Agent · Queens, NY · Member since 2016 · 2k+ posts · 1k+ votes
7mo
Quote from @Rosalie DiPietro:

I'm going to be listing a four family rental property for my dad. It's a property that I've managed for the past 13 years. The property is in a trust (I am one of three trustees with my brothers) and we'll be doing a 1031 exchange into a DST.

Property is located in the Bensonhurst section of Brooklyn NY 11214. The primary buyers in this area are currently Asian who come in and gut renovate, installing separate, tenant-paid, heat and hot water.

Question: There are currently three remaining tenants. All four apts need renovation and the remaining tenants pay below market rents.

Should I try to sell the property with the current tenants or should I ask the tenants to leave (I'll need to give two tenants up to 90 days to leave and one tenant up to 30 days, as per NYC law) and then list the building as empty and ready for renovations and new, market rate tenants?

Thanks for your input!


Hello Rosalie,

Short answer: Yes, sell the property vacant.

Having the property vacant will make showings easier and attract more buyers in the first 30 days. This will also lead to faster offers. The best and highest-value deals are typically negotiated within the first month of the listing being on the market.

Furthermore, multifamily offers with full vacancy contingencies tend to be on the higher end, whereas investors/buyers who will take a property as-is (with tenants) offer at a steep discount. We just listed a Brooklyn multifamily where investors who offered to buy as-is with full occupancy offered 20% below the asking price, while other investors who want the property vacant have offered well above the asking price.

If you anticipate receiving finance offers from buyers, you can give your 90-day notice now OR when you list the property online. Median Days on Market for small multi-family buildings in Bensonhurst is about 30 days before a listing goes into contract. It will likely take about 45-60 days to close after contract.

If you anticipate an all-cash buyer, I'd give the 90-day notice before listing. About 1/3 of recent multifamily closings in Bensonhurst were cash deals.

All the best!

Abel

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  • Caleb Brown
    Real Estate Agent · Kansas City · Member since 2018 · 4k+ posts · 3k+ votes
    7mo

    I would try and list it first with the tenants. You would sell at a higher price vacant but that'd take time, maybe connect with a local agent to gauge demand and comps. You can do a shorter listing period. If the interest is flat then you can proceed with the nonrenewing tenants. The risk with this process is the tenants can stay and then you'd have to go through the eviction process. It might be possible to list and proceed with clearing the tenants out but it gets messy for everyone involved. Are the tenants on MTM leases or long term? 

    0Reply
  • Rosalie DiPietro
    OP
    Member since 2022 · 40 posts · 14 votes
    7mo

    Tenants are all month to month.  I'm leaning towards asking them to leave...maybe offering a financial incentive 

    2Reply
    • Abel CurielBusiness Member
      Real Estate Agent · Queens, NY · Member since 2016 · 2k+ posts · 1k+ votes
      7mo
      Quote from @Rosalie DiPietro:

      Tenants are all month to month.  I'm leaning towards asking them to leave...maybe offering a financial incentive 

      Some attorneys would advise only to offer a financial incentive if tenants give you a hard time. The reason is that some tenants may voluntarily leave relatively quickly.
      REbuild Team - eXp Realty5234 Reviews
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      1Reply
  • Abel CurielBusiness Member
    Real Estate Agent · Queens, NY · Member since 2016 · 2k+ posts · 1k+ votes
    7mo
    Quote from @Rosalie DiPietro:

    I'm going to be listing a four family rental property for my dad. It's a property that I've managed for the past 13 years. The property is in a trust (I am one of three trustees with my brothers) and we'll be doing a 1031 exchange into a DST.

    Property is located in the Bensonhurst section of Brooklyn NY 11214. The primary buyers in this area are currently Asian who come in and gut renovate, installing separate, tenant-paid, heat and hot water.

    Question: There are currently three remaining tenants. All four apts need renovation and the remaining tenants pay below market rents.

    Should I try to sell the property with the current tenants or should I ask the tenants to leave (I'll need to give two tenants up to 90 days to leave and one tenant up to 30 days, as per NYC law) and then list the building as empty and ready for renovations and new, market rate tenants?

    Thanks for your input!


    Hello Rosalie,

    Short answer: Yes, sell the property vacant.

    Having the property vacant will make showings easier and attract more buyers in the first 30 days. This will also lead to faster offers. The best and highest-value deals are typically negotiated within the first month of the listing being on the market.

    Furthermore, multifamily offers with full vacancy contingencies tend to be on the higher end, whereas investors/buyers who will take a property as-is (with tenants) offer at a steep discount. We just listed a Brooklyn multifamily where investors who offered to buy as-is with full occupancy offered 20% below the asking price, while other investors who want the property vacant have offered well above the asking price.

    If you anticipate receiving finance offers from buyers, you can give your 90-day notice now OR when you list the property online. Median Days on Market for small multi-family buildings in Bensonhurst is about 30 days before a listing goes into contract. It will likely take about 45-60 days to close after contract.

    If you anticipate an all-cash buyer, I'd give the 90-day notice before listing. About 1/3 of recent multifamily closings in Bensonhurst were cash deals.

    All the best!

    Abel

    REbuild Team - eXp Realty5234 Reviews
    WebsiteView Page
    1Reply
  • Rick Albert
    Real Estate Agent · Los Angeles, CA · Member since 2018 · 2k+ posts · 1k+ votes
    7mo

    Depending on your timeline you could do a hybrid. Give the tenants notice and then list. That way you can advertise that the property will be delivered vacant but you don't have to wait until it is.

    The main risk is if the tenants give you problems. You are already asking them to leave, and now you are interrupting them by doing showings.

    Alternatively, you could sell with tenants at a discount. You are taking the risk off the table by dealing with tenant move outs. What if they don't want to move out? Now you have to disclose that to buyers who may ask.

    New York is very tenant friendly, I would get crystal clear on what you can and cannot do. It may not be just giving notice and calling it a day.

    1Reply
  • Scott AllenBusiness Member
    Real Estate Agent · Columbus, OH · Member since 2020 · 449 posts · 471 votes
    7mo

    @Rosalie DiPietro The primary buyers in that area are Asian? Keep the current tenants month to month and sell the property to a brrrr investor.

    [email protected]614-698-1227
    Reafco - Columbus, OH
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    0Reply
  • Mohammed Rahman
    Real Estate Broker · New York, NY · Member since 2020 · 2k+ posts · 1k+ votes
    7mo

    Hey Rosalie,

    I'm a real estate broker based in NYC and Long Island, and there's more than one way to go about this:

    1) Selling the property with the current tenants lets you avoid the headaches of NYC tenant laws and keeps the cash flow intact through closing. However, since you’re below market rents, buyers may discount the price.

    2) Selling the property vacant can help you achieve a higher sale price by marketing it as fully vacant and ready. The trade‑off is added time and administrative work to properly serve notices and follow NYC’s requirements to avoid legal issues.

    Please don’t hesitate to reach out if you’d like more guidance on how to position the building or run the numbers either way; I’d be happy to help out!

    0Reply
  • Rosalie DiPietro
    OP
    Member since 2022 · 40 posts · 14 votes
    2w

    I'm back and here's an update. In April 2026, I retained an eviction attorney who issue Notice to Vacate. I now have 3 empty apartments as of August 24. The 4th tenant was supposed to vacate on 7/31 after being given 90 days notice, as required by NYC law.

    Now, I cannot accept payment and her first court date is December 9...ugh!!! She doesn't show any signs of moving, liking cleaning out etc.

    The property was listed on 8/28. I have a serious buyer with a great offer. He's willing to go into contract but will definitely want the tenant out by closing.

    I open to all suggestions on how to motivate the remaining tenant to move. Waiting til 12/9 court date...and I'm sure she'll get it postponed, especially since it's a heavy holiday month....means waiting longer than anticipated for the closing. I think she's being coached by someone. Interesting that she knows everyone has left but she's hanging in.

    Thanks!

    0Reply
    • Abel CurielBusiness Member
      Real Estate Agent · Queens, NY · Member since 2016 · 2k+ posts · 1k+ votes
      1w

      Hello Rosalie, glad to hear you've been able to vacate the other units and that you have a serious buyer interested.

      Since you cannot accept rent, the tenant shows no signs of moving, and you have a court date, I would ask your attorney about the risks of offering cash for keys. If you are not satisfied with their answer, consult with other attorneys to see what they would advise here - most NY firms will offer a free initial call/consultation.

      This is not legal advice & I am not an attorney: It may not make sense to offer cash for keys since Kings County court will likely allow her to drag this out for at least a few more months or court dates.
      If cash for keys is a viable option, offer to compensate based on how soon the tenant leaves. If they leave by Oct. 1st, they'll get the highest possible amount, and that amount will decrease each day (or week) that the tenant remains on the property. Include a final date that you are willing to stick to, i.e., Dec. 8th. Since they may be coached, don't propose an amount and expect them to ask for an outrageous cash-for-keys amount initially.

      Happy to recommend attorneys for you to chat with in case you want a 2nd or 3rd opinion.

      All the best!

      REbuild Team - eXp Realty5234 Reviews
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  • Rosalie DiPietro
    OP
    Member since 2022 · 40 posts · 14 votes
    2w

    Also, when she finally leaves, can I issue a 1099 to her for all the months she didn't pay rent?

    0Reply
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