Selling an apartment building
Selling apartment buildings with reliable figures.
Anyone who buys an apartment building is above all buying an income. We prepare the rent roll, tenancy agreements and costs so that the due diligence runs smoothly and the price is not renegotiated in the final round.
What counts with an apartment building
The price follows the income.
With apartment buildings and mixed-use buildings, the income is the focus. Valuers generally use the income approach here (§§ 27 to 34 ImmoWertV): the starting point is the rent achievable in line with the market, less the management costs, capitalized over the remaining useful life with the property yield rate (Liegenschaftszinssatz), plus the land value. Buyers calculate in a similar way, often also with a multiple of the annual net cold rent.
The most important document is therefore a rent roll that matches the tenancy agreements and the actual rent payments: floor area, rent, start of the contract, last rent increase, deposit, arrears. Discrepancies come to light in the buyer’s due diligence and then cost time and price.
Buyers in Berlin also ask how the rents can develop. For existing tenancies, increases are only possible up to the local comparative rent and within the cap on rent increases (Kappungsgrenze) (§ 558 BGB); the benchmark is the Berlin rent index (Mietspiegel). For new tenancies the rent cap (Mietpreisbremse) applies (§ 556d BGB). We present the rents so that buyers can assess this themselves, without us holding out any prospects.
If the building is located in a social preservation area (soziales Erhaltungsgebiet), alterations, changes of use and division into condominiums may require a permit (§ 172 BauGB). This affects what a buyer can plan for the building and therefore belongs in the documents.
Which buildings we sell.
- Apartment buildings in period and new buildings
- Mixed-use buildings with shops or offices on the ground floor
- Buildings with a side wing or rear building
- Partly vacant buildings with development potential
- Divided buildings that are to be sold as a whole
- Buildings owned by communities of heirs
What we take care of.
Figures and documents
- Reconciling the rent roll with the tenancy agreements and rent payments
- Service charges, arrears and deposits
- Placing existing rents in the context of the rent index
- Land register, public easements, preservation area and listed building status
Marketing
- Exposé with a rent statement and actual figures
- Data room for the buyers’ due diligence
- Approaching buyers with a matching investor profile
- Discreet marketing without portals, if you prefer
Closing
- Proof of financing and identity checks of the buyers
- Coordinating the purchase agreement with the notary’s office, including rents, deposits and the cut-off date
- Handover of tenancy agreements, deposits and documents on the transfer date
- At the buyer’s request, management by HEPA Hausverwaltung
How it works.
Meeting and figures
We discuss your goals and look at the rent roll, tenancy agreements and costs.
Price and mandate
Reasoned price assessment based on the income and an offer with a clearly stated commission.
Data room and marketing
Exposé, data room, approaching suitable buyers, viewings with consideration for the tenants.
Notary and handover
Buyer checks, purchase agreement, notary appointment, handover on the cut-off date.
What buyers look for in apartment buildings.
Rent roll and rent payments
Buyers compare the rent roll with the bank statements. If the agreed rent and the actual payments do not match, the price is renegotiated. We clarify discrepancies beforehand.
Rent index and rent cap
For the buyer, what counts is the rent paid today and the rent that is legally possible. We place the existing rents in the context of the Berlin rent index (Mietspiegel) and point out the limits for new tenancies.
Deposits
The buyer assumes the rights and obligations arising from the rent deposits (§ 566a BGB). If a tenant cannot recover the deposit from the buyer at the end of the tenancy, the seller remains obliged to repay it. That is why every deposit needs proof.
Commercial units on the ground floor
Commercial tenancy agreements often have fixed terms, index-linked or graduated rents and an option to charge VAT. We present these points separately for each commercial tenancy agreement. More under Commercial property.
Vacancy and expansion
Vacant units or an unconverted attic can be of interest to buyers. We compile what is known and say openly what a buyer has to check themselves.
Discreet sale
You do not want your property to appear on the portals? Then we approach selected buyers directly and send the exposé only after a confidentiality commitment.
The documents we need.
Whatever is missing, we obtain. The more complete the documents are at the start, the faster buyers decide.
- Current extract from the land register (Grundbuch) and cadastral map
- Rent roll with floor area, rent, start of contract and deposit
- All tenancy agreements with addenda and the last rent increases
- Utility cost statements (Betriebskostenabrechnungen) of recent years
- List of the costs that are not passed on to the tenants, such as management and maintenance
- Energy performance certificate (Energieausweis)
- Floor plans and floor area calculation
- Building permits, especially for attic conversions and changes of use
- Evidence of modernization work
- Proof of deposits
- Passport or ID of the owners, for companies an extract from the commercial register (identification duty under the German Anti-Money Laundering Act, Geldwäschegesetz)
Guides
Related articles in our guide section (German).
Restnutzungsdauer-Gutachten: Was es leistet, was der BFH verlangt und wann es sich lohnt
Wie lange ist ein Gebäude noch nutzbar? Die Antwort beeinflusst den Verkehrswert und die Abschreibung. Was die ImmoWertV regelt, was das Finanzamt anerkennt und wann ein Gutachten sinnvoll ist.
Immobilienbewertung Berlin: Wie der Wert Ihrer Immobilie entsteht
Was ist meine Immobilie wert? Vergleichs-, Ertrags- und Sachwertverfahren, Bodenrichtwerte aus BORIS Berlin und wann Sie ein Verkehrswertgutachten brauchen.
Steuern beim Immobilienverkauf: Welche Steuern anfallen und wann der Verkauf steuerfrei ist
Einkommensteuer auf den Gewinn, Grunderwerbsteuer, Umsatzsteuer und Grundsteuer im Verkaufsjahr: ein Überblick, welche Steuern beim Verkauf einer Immobilie eine Rolle spielen und wer sie trägt.
Frequently asked questions
Good to know.
How is the price of an apartment building determined?
Through the income. The starting point is the sustainable net cold rent, less the costs that remain with the owner. Added to this are location, condition, maintenance needs and the legally possible rent increases. The price assessment is free of charge and non-binding and comes personally from the managing directors.
Which documents do buyers need?
Above all a complete rent roll, all tenancy agreements with addenda, the utility cost statements, land register, cadastral map, energy performance certificate and evidence of modernization work. We set up a data room for the due diligence.
Who pays the commission?
We agree on the commission in writing before marketing starts. For apartment buildings, mixed-use buildings, commercial property or land, the split between buyer and seller is freely negotiable.
Can I sell discreetly?
Yes. Then we approach selected buyers directly and send the exposé only after a confidentiality commitment. We arrange viewings of individual apartments with the tenants.
Do the tenants have a right of first refusal?
As a rule not, when an undivided building is sold as a whole. The right of first refusal under § 577 BGB concerns apartments for which condominium ownership was or is to be created after they were handed over to the tenant. In social preservation areas, the district may have a statutory right of first refusal (§ 24 BauGB). Whether it exists in the individual case is clarified by the notary’s office.
How long does a sale take?
That depends mainly on price, location and how complete the documents are. With a price in line with the market and complete documents, buyers are found much faster. After the notary appointment it usually takes a few more weeks until the handover, while the purchase price and the land register are settled.
Do you take over the management after the sale?
At the buyer’s request, yes, through HEPA Hausverwaltung, our sister company.
Offer an apartment building for sale.
A few details are enough. We reply within one working day.