How do I sell a rooming house business?

Selling a rooming house means selling a place where people live. A buyer will look at the income, but also at how smoothly the house runs without you. Start with the structure of the sale, then get the paperwork in order, and keep the residents in mind at every step, since they will see strangers walking through their home.

Building, operation or both

Decide with your lawyer and accountant whether you will sell the building together with the operation, or the operation alone. The answer changes who your buyers are and what they will ask for. Some buyers want a going concern; others want property. Be clear in your listing about which one you are offering.

Records a buyer will ask for

Prepare a rent roll showing each room, the amount paid and the length of stay. Keep a maintenance log with repairs and dates. Separate your personal costs from the house’s costs in the financial statements, so a buyer can see what the house itself earns. A buyer who finds mixed expenses will start to doubt the rest.

Make the house run without you

Write down how you run the house: who collects payments, who cleans, who answers calls at night, which suppliers you use, and how you handle problems between residents. A short manual helps a buyer picture taking over. If you do all of it yourself, say so honestly and offer a handover period.

Residents and viewings

Good practice is to give residents notice before any viewing, keep visits short, and not share personal details with buyers. Ask your lawyer what notice the law requires. What you must tell residents about a sale, and how tenancy law applies, is a question for your lawyer.