Why so many multifamily buildings for sale? (renters, insurance)

[majka]

It kind of strange all landlords wants to sell their businesses, even in the areas that rents are pretty good?

[OPRFmama]

They are paranoid that the capital gains tax rates are going to go up, causing them to have to pay more taxes (on their profits) when they eventually sell... and I’m sure some have been negatively affected by non-paying tenants and just want out.

[majka]

Thanks, I thought about tenants may not paying rent (our tenants are so far so good in paying on time). But didn’t know about capital gains tax rates are going to go up, I have to read more about it.

[Curly Q. Bobalink]

Originally Posted by majka

Thanks, I thought about tenants may not paying rent (our tenants are so far so good in paying on time). But didn’t know about capital gains tax rates are going to go up, I have to read more about it.

Not sure, but Illinois' strong ban on evictions during Covid may have taken some of the luster off owning residential renting housing as well. Illinois, for better or worse, is purported to be a state much more friendly to tenants than landlords, not a business I'd want to be in myself. However, commercial property? Sure, if they quit paying rent, you can put a padlock on the door. On the other hand, depending on how likely your building will be burned down during a peaceful protest may make insurance unaffordable, so there's that.

[ChicagoMeO]

I imagine that those landlords suffered who had multi unit buildings, if their renters did not pay rent all last year and could not be evicted. I would not choose to be a landlord for that reason. I dont know how they survived, because their bills still kept going,

[LakeLifePA]

My guess would be dead beat renters that refuse to leave, and landlords that can't evict them. Plus, housing is sky high right now. What a perfect storm.

[majka]

I see a lot for lease commercial properties, my guess would be COVID and internet business take over. As it goes with tenants, it’s a hit or miss game to find right one. We removed bad tenants just before COVID craziness. Tenants who are right now, pays nicely so far.

[BRU67]

Originally Posted by majka

It kind of strange all landlords wants to sell their businesses, even in the areas that rents are pretty good?

In addition to the other reasons many have cited, I think the specter of rent control also could have something to do with this. Up until last year, this was just a fantasy. Now, there is actually some risk it the ban could be lifted and we could end up with a hodge podge of rent control and non-rent control communities, which could really tank your property value if you unluckily end up in one of the former. Plus, the market is red hot. I'm honestly surprised there aren't more properties on the market.

[majka]

I’m curious how politicians deal with rent control, as I believe majority of them if not all are landlords. I don’t think they want play against their businesses. Something is suspicious here

[ToriaT]

Don't be so sure of this. I have had realtors calling me begging to sell my building because there is no inventory.