How to sell a sharehouse as a going concern

Hi all,

I am curious about people’s experience selling properties such as sharehouses as a going concern.

We have a large sharehouse in Adelaide that has been very good to us financially for many years, but we just don’t have enough hours in the day anymore with a young family.

In the past I have not had much success with real estate agents, as they tend to focus on marketing to your typical investor or home purchaser. For me, the value in the property is as a going concern, as we are achieving excellent yield, but as you would know keeping a property presentable with tenants is difficult at the best of times!

I would love to hear strategies or channels that you have used to sell a slightly unusual property such as this.

Thanks!

 

I'm guessing this would also be called a boarding house? I see them quite often in Sydney - often marketed via a commercial agent because its return profile would be more like a commercial property. Are there any commercial agents that specialise in smaller commercial properties you can approach?

 

Maybe a business broker?
Marg

 

Hi y-man.

Yes, we run it legally. We have all approvals in place and have it registered with council as a legal boarding house. It meets all the fire and safety regs and we have appropriate room based landlord insurance in place (most landlord insurance does not cover a property with more than 4 inpedendent tenancies). Trust me, not easy to do.

I am hoping this will make it easier to market, but time will tell.

 

You’re right. The investment profile is more that of a commercial property. Using a commercial agent is an interesting angle that I had not considered. Will definitely need to investigate.

 

Thanks Marg.

So, sell as a going concern with the building? I’m not that familiar with purchasing/selling businesses, but I agree that this is worth considering.

 

Boarding homes can be challenging as they're not widely accepted by lenders under residential policy (and if they are it is often lower LVR). There are options though!