January 28, 2022
So, you have made the decision to list your storage or RV Park property with CRD Realty. Fantastic! Now what? Well, there are a few housekeeping items you need to consider taking care of prior to going to market in order to ensure a smoother experience and obtain the best price possible for your asset. Let’s take a look at them below:
- Clean – The first item you will need to consider is the attractiveness of your property. Though your asset is valued using income, the physical appearance is very important as well. If a buyer touring your property sees trash, old discarded items scattered around, broken down vehicles, dusty doors (climate-storage), cobwebs, overflowing trash bin, dirty bathrooms, overgrown landscaping etc. it will create a negative impression. Consider walking your property from a buyers perspective or have your broker walk it with you to help point out items that need to be taken care of prior to placing the property on the open market.
- Repair – The second item you need to consider taking care of is any deferred repairs to the property. This could be items such as busted doors, non-working lights, broken toilets or shower/s, leaking roof, damaged siding or RV power pedestal/s etc. If a buyer discovers these issues through a tour or inspection, you can almost guarantee, they will be coming back to you for a price reduction. Take care of them now, instead of passing the problem off to the next owner.
- Organize – The last item you will need to take care of is organizing your office files and paperwork. Let’s take a look at the steps below:
> First, you will need to gather 3 years of Profit & Loss statements. Review your statements to ensure they are accurate.
> Second, review your lease agreements against your current rent roll to ensure all data is current and accurate.
> Third, verify the information shown on your management software reports accurately reflects what is shown in your bank statements for deposits.
> Fourth, gather any warranty paperwork for major fixtures or structures that are still under warranty and transferable to the new owner.
> Lastly, gather miscellaneous paperwork such as utility statements for the previous 12 months, previous 2-3 years tax statements, survey, site plan, Certificate of Occupancy, previous environmental reports such as Phase 1 ESA, important vendor contacts for the property, insurance information etc.
If you are looking to sell your property, I hope you do not hesitate to reach out to us. Even if you decide not to go with CRD, I hope you find this list helpful as you move forward in the sale of your asset.
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