Property values will be determined taking the following variables in mind:
- Vacant Buildings.
- One unit currently owner occupied or vacant
- One or more units to be recovered for owner occupancy and/or extended family occupancy.
- Completely tenant occupied to remain that way (leased, month to month, or protected rentals).
- Evictions already performed on the building creating a ‘tainted unit’.
- Ellis Act evictions on the premises.
In establishing marketing strategy, there are several options:
- Approach the tenant/tenants as buyers.
- If the tenant plans to move at any point in the future, be flexible with them on expected time lines, offer to help them with moving expenses, or wait until the unit becomes vacant.
- Wait to market the building until the tenant, or tenants vacate.
- Sell the building now at a value consistent with its income.
- Consult an attorney to explore your options.
Consider talking to an attorney who specialized in real estate law; particularly landlord-tenant law. The City and County of San Francisco has implemented varied legislation over the years; sometimes in contradiction to each other. Have a firm understanding of the impact of your tenancy on how you may market your building and in how you can use it after you own it. If you need any resources for local attorneys, please don’t hesitate to reach out to me.