Price based on a cap rate applied to current net operating income - not projected income or historical vacancy assumptions. Post-HSTPA, buyers apply cap rates of 5-7% to stabilized rent rolls with minimal upside. Deduct all operating expenses accurately and present an audited, verified rent roll with complete lease histories. Any gaps in documentation will trigger buyer skepticism and lower bids in this high-scrutiny asset class.
This article provides general educational information only. It is not legal, tax, financial, insurance, compliance, housing, brokerage, or professional advice. Rules, tax rates, obligations, enforcement practices, and market conditions vary by property, building, contract, municipality, and jurisdiction, and they change. Sellers should consult a qualified attorney, CPA, or other appropriate professional before making decisions based on their specific situation.
From the seller playbook: Selling Rent-Stabilized Buildings
This is general information, not legal, tax or accounting advice. Every situation is different. Talk to a licensed attorney, accountant or tax professional before you act.
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