At one point or another, owners of multi-family buildings may consider the possibility of turning their properties into condominiums. Although a lot of work, converting your multi family home to condos can end up being quite lucrative for any homeowner and maximize your profit!!
While converting a multi-family property into individual condo units does involve some legal as well as business knowledge, a little planning, and a lot of help from professionals can make this a viable and a money making proposition. A quick general rule is… the number of condos in your home is equivalent to the total number of units you can convert for condos by right. So, a two family can be converted to two units, a three family to three units, etc…you get the idea!
Here we explain the process of transforming a multi-family building into a condominium:
Get the best information available by talking to an Architect and a real estate agent who specializes in condo conversions. A detailed survey of the property will help identify any structural issues or modifications needed, and a talented architect can help you create floor plans that optimize space and appeal to potential buyers. At this point, you should also start talking to real estate agents for advice before, during and after completion. When the units are nearing completion, your real estate will prepare a marketing plan for the units which you can implement once your property has been converted.
Conduct a feasibility assessment and study existing laws and zoning regulations. Before diving into the nitty-gritty of condo conversions, you must first conduct a thorough feasibility assessment. Typically this process starts with an architect. You have to decide one of two things… (1) Are you renovating the existing property only? OR (2) Are you adding additional sq ft or dormers, for example, to an already existing home? Your architect will typically conduct a general assessment and let you know the maximum allowable buildable sq ft for your home.
Your architect will check the zoning and be able to give you an idea of which direction to go. You should, typically through a realtor, take a look at the local market and determine how much renovation you should do to be competitive in your local market. It is critical that your realtor be familiar and have experience with condos in your marketplace. Recommendations should be made regarding amenities, number of bedrooms, number of bathrooms, brands of appliances, delineations of outdoor space, etc. An agent that has experience with condo conversions can advise you on all these issues. This is something Steve Bremis from the Steve Bremis Realty Group specializes in and can provide consulting services throughout the conversion process…sometimes at no charge! Once these details have been ironed out you’re ready for the next step.
NEXT… your architect will draw up plans for your conversion! Once your architect plans have been finalized, your plans need to be approved by the building department at which point they will issue you a building permit to commence your renovation. Let the fun begin!
Doing all of these will help you determine if your project is financially viable as well as ensure a smoother endeavor.
Conduct renovations and upgrades. If your floor plans and blueprints are ready, it’s time to start doing the renovations. It is critical to get a reliable contractor to do your rehab…this could make or break the entire process. You should check references and get at least three bids for the work being performed. Reliability, quality and the speed of renovation can dramatically affect the profitability of your project. The condo buyer typically is looking for care free living. Many condos are gut renovated (total rehab down to the studs) to obtain top dollar or you may decide to just modernize the property. This phase may involve upgrading everything, including common areas, installing separate utility meters, modernizing all the property’s facilities, enhancing the overall appeal or complete redesign of each condo unit, and ensuring that each one meets the current building codes.. When updating the units, make sure to consider sound proofing, energy-efficient features and contemporary designs to attract potential buyers in a competitive market.
Make sure your property has proper legal documentation. Once the renovation process is in full swing, make sure to use some of your time to focus on drafting your condo docs or the legal documentation associated with condo ownership. This includes the drafting of individual titles and deeds for each unit, as well as the drafting of a comprehensive set of bylaws, rules, and regulations for the condo association. Make sure to work with a lawyer and a local real estate expert to make sure that everything you draft will be above board and airtight.
Focus on marketing and sales. Develop a robust marketing strategy with your agent, make sure that it showcases the unique features of each unit, and that it makes use of both traditional as well as social media to reach potential buyers and accelerate the sales process. The Steve Bremis Realty Group can provide staging services, an individual property website and an extensive social media campaign to promote and sell your beautiful units.
If you’re considering transforming a multi-family property, work with the Steve Bremis Realty Group. Steve Bremis can provide you with trusted advice and quality referrals from beginning to endA multi-awarded realty firm, the Steve Bremis Realty Group has years of experience in the real estate market and is more than ready to provide you with assistance and consulting on converting a multi-family property into condos, as well as information on legal considerations, design choices, and marketing strategies for your new venture.
Call or text Steve @ 617.828.1070 or send us an email here to schedule a free consultation.