Owning an apartment complex can be a great investment, but not everyone wants to deal with everything a landlord has to — which can be a lot. Many apartment building owners in Massachusetts have moved on from dealing with the hassle of the rental market by turning their buildings from apartments units into condominiums. There are advantages and disadvantages to this, and there is a right way to go about it. Here are some things to know if considering a condo conversion.
What is a condo conversion?
It is the legal process of converting an apartment building, either all or part, from rental units to units that are sold and then owned by the occupants. The new owners then become shared owners of any common space, such as playgrounds, pools and gyms that are onsite. Not everyone wants a house or land to deal with, so it gives people the benefits of homeownership while enjoying the apartment lifestyle.
Advantages and disadvantages
A couple of advantages of doing a are that it will eventually release the owner of the apartment building from landlord duties, and it can drive up rent — putting more money in one’s pocket while encouraging tenants to move on their own. There are some disadvantages to condo conversion, as well. Laws are in place to protect tenants. They must have the opportunity to purchase their units. There are also quite a few legal hoops one needs to jump through to get approval for the conversion.
Apartment complex owners in Massachusetts interested in condo conversion may want to help themselves and get . It is not as straightforward as one might think. Legal counsel can assist one in seeking the proper approval and taking all the steps necessary to get the project completed with all I’s dotted and T’s crossed.