If you’re planning to sell a rent-stabilized multifamily property, the strongest offers (and smoothest closings) come when a buyer and their lender see a clean, well-documented rent-stabilized file. Below is a practical checklist of what to assemble before you go to market so your building is attractive to buyers, financeable for lenders, and positioned to avoid last-minute price chips or post-closing claims. 

The Essentials Buyers Expect

1) Proper rent-stabilized leases and riders (current and complete)

·    A fully executed lease for every stabilized apartment, with no missing pages or addenda.

·    The correct DHCR Rent Stabilization Lease Rider attached to each initial lease and renewal for the applicable period.

·    If a preferential rent was ever charged, make sure the preferential rent terms and disclosures appear in the lease/rider and match the registrations. 

2) Signed rent-stabilized renewals on file

·    For each stabilized unit, have the most recent RTP-8 (DHCR) renewal offer and the executed renewal at the legal stabilized rent on file.

·    Keep proof of timely service of renewal offers (mailing certificates/receipts) and any tenant correspondence regarding renewal elections or refusals. 

3) Up-to-date and accurate DHCR registrations

·    Annual DHCR registrations for each stabilized unit through the current registration year, with legal regulated rent, tenant of record, and status accurately reflected.

·    Correct any discrepancies (e.g., wrong tenant name, incorrect rent amounts, missing years) before listing.

·    Maintain proof of submission/acceptance and copies of all prior years’ registrations and rent histories (ideally back to the base date or earlier). 

4) Documentation supporting any apartments deregulated prior to HSTPA (2019)

For any unit converted to free market before the 2019 Housing Stability and Tenant Protection Act (when certain deregulation pathways still existed), compile a complete evidentiary file showing why the unit was lawfully removed from stabilization at that time. Include, as applicable:

·    High-rent vacancy / high-rent high-income deregulation files (for the years when those were permitted):

·    Rent calculations showing the legal regulated rent exceeded the then-applicable threshold.

·    Vacancy or high-income documentation (where required by the law in effect at the time). 

·    Substantial rehabilitation documentation (if used):

·    Architect/engineer certifications, scope, DOB permits/close-outs, itemized costs, vendor contracts, proof of payment (cancelled checks/wires), and unit/ building condition evidence pre-rehab. 

·    Individual Apartment Improvements (IAIs) used to reach a deregulation threshold (where applicable at the time):

·    Dated contracts, detailed invoices, proof of payment, contractor licenses/insurance, photographs (before/after), tenant consent (where required by the then-applicable rules), and breakdown showing how legal rent was lawfully increased. 

·    Tax benefit implications (e.g., 421-a/J-51): if benefits were in effect, confirm no stabilization obligations continued by virtue of those programs when deregulation was claimed. 

·    Consistent DHCR registrations and leases around the time of deregulation (no gaps or contradictions).

Additional Items That Strengthen Marketability

·    Complete tenant files: applications, renewals, notices served, payment ledgers, and communication logs. 

·    Accurate rent roll aligned with leases and DHCR records, noting vacancy dates and statuses.

·    Violation/Compliance cleanup: address open HPD/DOB/OATH violations; keep sign-offs and certificates handy. 

·    MCI/IAI records (past and pending): decisions, orders, and cost support. 

·    Utilities & services: sub-metering, heat/hot water logs, and service contracts. 

·    Litigation/administrative proceedings: summaries and current status of any DHCR/HP/Non-payment/Overcharge matters. 

Why This Matters

Buyers (and their lenders) will test consistency across four places: leases, riders, DHCR registrations, and the rent roll. Any mismatch can trigger price retrades, escrow holds, or delays. A well-organized package not only speeds diligence—it also protects your sale price and reduces the risk of post-closing overcharge claims or regulatory challenges. 

How We Can Help

Our firm regularly prepares sellers for the market by:

·    Auditing lease/rider sets and renewal histories for completeness and compliance.

·    Reconciling DHCR registrations and correcting errors before listing.

·    Building evidentiary files for pre-HSTPA deregulations (including substantial rehab and historical deregulation paths).

·    Coordinating with brokers and buyer counsel to anticipate diligence requests and minimize retrades. 

If you’re considering a sale this year, not only can we represent you on the sale of your property, but we can also perform a pre-marketing compliance review and assemble a lender-ready diligence binder so you go to market with confidence. 

Contact our office today @ [email protected] to schedule a consultation.