Selling Your LA Apartment Buildings: A Guide for Property Managers

Managing a building whose owner is thinking about selling? Send us the address and rent roll. We will tell you what we would pay. Private, no listing, no obligation.

As a property manager, you'll likely be the first to know if your owners are considering selling their apartment buildings.

This could be because they're aging and don't want to deal with managing the property anymore. Or the roof needs replacing, insurance prices have risen massively, or they've just gotten fed up with tenants who aren't paying market rent. Sometimes it's a partnership issue or a family inheritance.

Either way, you'll usually be the first person they talk to.

We buy apartment buildings across LA and regularly work with property managers who have owners considering selling. Often this works better for everyone. The owner gets a clean sale, you earn a commission, and the building never has to be listed.

Below is how we go about buying your buildings and what you should know as a property manager.

Why owners in LA are selling

Apartment buildings in LA have become much more complex to own over the last few years.

Many owners bought their buildings years ago, with much lower running costs and a far simpler process. They'll have a large amount of equity and may not have the income to match.

Some of the issues we're seeing include:

Rent control. The City of LA regulates rents on older buildings through its Rent Stabilization Ordinance (RSO). The allowable increase is 3% for July 1, 2026 through June 30, 2027, and the City has also changed the formula used to calculate future increases. Owners with long-term tenants who aren't paying market rent will struggle to grow their income. More on the 2026 RSO changes here.

AB 1482. Many buildings outside the RSO are covered by statewide rent caps and just-cause eviction rules. Owners who felt they had more flexibility may find this isn't the case.

Measure ULA. Los Angeles now imposes an extra transfer tax on larger sales. For deals closing after June 30, 2026, the seller pays an extra 4% on sales over $5.4 million and 5.5% on sales of $10.9 million or more, on the full price. This can really impact how much the owner nets. See our seller net proceeds guide.

Operating costs. Insurance, utilities, salaries, repairs and property management have all increased in cost. Often running costs are rising much faster than rents.

Inspections and retrofits. SB 721 balcony and exterior elevated element inspections, plus the City's mandatory soft-story seismic retrofit program, have all added costs for owners of older buildings. Some properties need quite a bit of work and some have open compliance issues.

Older buildings. Roofs, plumbing, electrical, difficult tenants and just general tiredness.

Not everyone will want to sell, but if they do, it's worth knowing how an off-market sale works and how you get paid.

Listing on the market vs. selling off-market

There's nothing wrong with putting a property up for sale. If it's a well-maintained property with market rents, listing is likely the best option.

However, sometimes it's not ideal to put a building on the market.

You'll have to market the property, organize viewings and deal with potential buyers and their brokers. Often you'll have to give buyers access to occupied apartments.

We've seen many deals fall through due to financing, inspections and buyers trying to renegotiate the price once in escrow.

By selling off-market you can avoid much of this.

We're the buyer, so we aren't trying to find another buyer for you. We're not trying to put the property in contract and then think about what we're going to do with it.

Our process is simple:

• We buy properties as they are. We can deal with older buildings, deferred maintenance, code issues and mandatory repairs. We're not expecting a 1960s apartment building to be in perfect condition.
• We can deal with tenants. Rent control, long-term tenants, Section 8, even tenant disputes.
• We can act quickly. Once we've seen the numbers and done a site visit, we can generally make a decision.
• We won't put the property on the market. You won't have to market it or deal with dozens of potential buyers.
• Flexible closing dates. Some owners want to close within 30 days; others need longer to deal with estate, partnership or tax issues. We can be flexible.
• We'll try to identify any issues up front.

While we may not pay the maximum price for every property, if the owner is looking for a simple, certain and convenient sale, this may be exactly what they need.

What we'll need to know

As a property manager, you'll usually have most of the information we need.

We don't need a 40-page offering memorandum or professional photos. We'd prefer to see the actual numbers rather than what a broker thinks the building could earn.

We'll generally need:

• Address and number of units
• Current rent roll and move-in dates
• Income and expenses for the year, ideally a trailing 12-month operating statement

From this we can decide if we're interested and give you an indication of value.

If the numbers look good, we'll ask for:

• Current leases and security deposits
• Property taxes and insurance
• Utility costs and tenant reimbursements
• Maintenance issues and major repairs
• SB 721 reports and seismic retrofit status
• Open code issues and LAHD issues
• RSO and SCEP details

If you don't have all of this, it's not an issue. We can start with what you have. If the owner hasn't been keeping great records, that's fine too. We've bought many buildings where the documentation wasn't perfect.

How property managers are paid

This is something more property managers should know.

If you've managed a property for 10 or 15 years, you'll have a stronger relationship with the owner than almost anyone. You know the tenants, the maintenance history, the financials and often the owner's personal circumstances.

Why should an outside broker get the business?

If you're licensed, you may be able to represent the owner on the sale and earn a commission. In California this is generally done through a licensed real estate broker or under the supervision of your employing broker.

We work with licensed property managers and brokers and are happy to pay a commission of up to 6%, even if the seller isn't paying a brokerage fee. This depends on the terms of the transaction and licensing. You don't necessarily have to pass the owner on to another broker.

We're also happy to keep the current property manager. If the manager is doing a good job, knows the tenants and has good vendors, that's a huge benefit to us. We'll look at this separately, but a sale doesn't automatically mean losing the management business.

How it generally works

We keep it as simple as possible.

1. Send us the information. We'll usually just need the address and rent roll. Email LA@BeverlyGroup.com or call 310-620-2290.
2. We review. We'll look at the income, expenses, location, condition of the building and potential upside. If we're comfortable with a price range, we'll let you know.
3. Site visit. We'll walk the building and common areas and will want access to some of the units. We'll work with the manager to keep this as minimal as possible.
4. Offer. If everything looks good, we'll make an offer covering price, deposit, due diligence period and closing date.
5. Escrow and due diligence. We'll review the leases, title, condition of the building and other property details. The manager helps coordinate access and documents, but we do our own underwriting.
6. Closing. Once contingencies are met, we close on the agreed date. Security deposits, rents and other items are prorated. Any notices are handled.

Some deals take a few weeks; others take longer due to estate, title and owner timing issues. We're flexible.

What type of apartment buildings do we buy?

We mainly buy multifamily properties in LA, generally between 4 and 30 units, but we'll consider larger buildings if the numbers work.

We're interested in Koreatown, Mid-City, West Adams, Hollywood, East Hollywood, Silver Lake, Echo Park, Westlake, Pico-Union, Palms, Mar Vista, South LA, Highland Park, the San Fernando Valley and other areas of LA County.

We're interested in older buildings with some complexity. That could include:

• RSO buildings with long-term tenants and below-market rents
• Properties that need significant repairs and capital improvements
• Vacant buildings or buildings with non-paying tenants
• Inherited, probate and trust-owned properties
• Partnership disputes between owners
• Code issues, unpermitted work and retrofit orders
• Owners looking to simplify their portfolio and invest their equity elsewhere

We're not put off by properties with issues. Usually these are the properties we're most interested in. We're not taking the property to an investment committee or looking for outside funding, so we can make our own decisions.

Some common questions

Does the property need to be empty?

No. Most properties we look at are occupied. We're happy with rent-stabilized units and long-term tenants.

What if there's an eviction in progress or a non-paying tenant?

Not an issue. We'll look at the circumstances and underwrite accordingly.

Are unpermitted units or code issues a problem?

We'll look at them. Some are relatively easy to deal with; some can have a big impact on value. We'd rather know up front.

Will the owner need to do any repairs?

Generally not. We buy properties as they are and factor in any known repair costs. Specific due diligence and closing terms are set out in the purchase agreement.

Can the owner do a 1031 exchange?

Yes. We often work with owners who have tax or timing issues. The owner will need to work with their tax advisor and a qualified intermediary. Our 1031 exchange guide covers the timing.

How quickly can we close?

It depends on the property and title, but we can be flexible with short escrows. We can also allow extra time if the owner isn't ready to close.

Will I lose the management?

Not necessarily. We're happy to talk about keeping the current manager.

What if the owner isn't ready to sell?

That's fine. We often talk to owners long before they're ready to make a decision. If a property you manage may become available in six months or a year, we're still interested in talking.

Owner considering a sale?

If you're managing an apartment building in LA and the owner has mentioned they're considering selling, get in touch. It doesn't need to be for sale and the owner doesn't need to have made a decision.

We're a principal buyer and can usually decide quickly whether we're interested. We're happy to talk directly to the owner or through you.

Just send us the address and any financial information you have. Email LA@BeverlyGroup.com, call (310) 620-2290, or request a private valuation. We'll have a look and let you know our thoughts.

Rent control, transfer tax and inspection requirements in LA change regularly. The information above is accurate as of November 2026. Please confirm independently.

• For brokers and property managers: how we work with licensed intermediaries
• Selling a rent-stabilized building: registration, frozen rents, retrofit orders that transfer
• Seller net proceeds: Measure ULA, transfer tax and what actually comes off the top
• The buyer due diligence checklist: every document a buyer will ask for
• All owner guides