Selling multifamily property

General information, not tax or legal advice. Rules and rates change, and every situation is different. Talk to your lawyer and accountant before you act on anything here.

What buyers need

• Rent roll, deposits and tenancy agreements
• Operating costs for at least two years
• Condition reports and recent work
• Status of every suite

Tenants during the sale

Residential tenants have strong rights, including notice before entry. Plan showings carefully.

Buyers and financing

Many buyers use CMHC-insured financing for buildings of five or more units. Their lender will want detailed records.

Multifamily property in detail

What drives value

• In-place rents against market rents, vacancy and turnover.
• Building age, systems, envelope and parking.
• Financing: many buyers use CMHC-insured mortgages, which reward energy upgrades, affordability and accessibility.

Typical lease structures

• Residential tenancies under the BC Residential Tenancy Act, on fixed terms or month to month.
• Existing tenants’ rent can rise once every 12 months, by no more than the yearly rent increase limit (2.3% in 2026, 2.2% in 2027), with three months’ notice on the approved form.

Due diligence

• Rent roll, every tenancy agreement and the last notice of rent increase for each suite.
• Operating statements, utility bills and any Residential Tenancy Branch disputes.
• Building condition, the envelope, the roof, plumbing and boilers, plus any hazardous materials survey.

BC and Vancouver specifics

• Apartments are assessed as Class 1, residential. See BC Assessment property classes.
• A sale does not end tenancies. The buyer takes over as landlord on the same terms.
• Vancouver has rules on renovations and tenant relocation for some rental buildings, so check before planning work.

Questions to ask

• How far are rents below market, and how fast could that gap close under the cap?
• What capital work is due in the next five years?
• Are there any open tenancy disputes?

Price for the neighbourhood’s stage

Neighbourhoods move through growth, maturity, decline and redevelopment, and different buyers want different stages. A buyer looking for upside wants an area that’s turning around; a buyer who wants stable income wants a mature one. Market the building to the buyers who want the stage it’s in.

Getting ready to sell an apartment building

• Documents: rent roll, operating statements, and for smaller buildings the tax returns or profit and loss statements. Vague numbers early only get worse in a deal.
• Deposits: list the security deposit for each suite. They aren’t income, but they transfer to the buyer at completion.
• Utilities: show how each suite is metered and who pays, and include the property tax notice with any levies.
• Expenses: buyers will compare your statement against a full list. Missing management, payroll, real insurance or exterior upkeep will be found and taken off your price. If you manage the building yourself, show a management fee.
• What buyers will look at: current vacancy rather than the long-run average, below-market rents from long-term tenants, suites that haven’t been updated, and the roof, windows, plumbing and seismic condition.
• Assessment: BC Assessment values property at market value each year, so the buyer’s future tax may differ from yours. Explain it rather than leaving today’s figure in their projections.
• Be honest about the area: a building in a declining area can still sell, to a turnaround buyer at a turnaround price.

Show the full costs

Buyers and their lenders add a management fee even if you manage the building yourself, a vacancy allowance even when it’s full, and a reserve for the big items. If your statements leave those out, the buyer’s numbers will come in lower than yours. Showing them up front, along with clean records of rent collected each month, makes your price easier to defend.

Questions people ask

Do my tenants stay after I sell?

Yes. Tenancies continue with the new owner. Ending one requires a valid reason under the Residential Tenancy Act.