Tenement Buildings

How to profit together from unit sale and renovation of a tenement building

11/07/2026 · Výkupy.eu

You own a tenement building but lack capital or capacity for its renovation? Selling the whole "as-is" is the fastest solution — but typically leaves 20–40% of value on the table. There's a third path: joint project with an investor, where you provide the building, the investor provides capital and execution, and you split the profit from resale. Here's how the model actually works, including numbers and risks.

Why resale by units yields more

The sum of individual apartment prices is practically always higher than the price for the whole building — apartments are bought by end users with mortgages, whole buildings only by a narrow circle of investors with cash who want income. Model example: an 8-unit tenement building saleable as a whole for 25 million CZK. After an 8 million CZK renovation and unit division, apartments sell for a total of 42 million CZK. Gross project margin ~9 million CZK before financing costs, taxes and reserve.

Catch: between 25 and 42 million lie 2–4 years of work, construction permits, ownership declarations, site management, marketing and selling eight units — and the risk that the market drops meanwhile.

How the joint model works

1. Value inputs: independently value the building in its current state (your contribution) and project budget (investor contribution: renovation, design work, financing, overhead).
2. Legal framework: usually a joint-project s.r.o. (SPV), where the owner contributes the property and the investor contributes capital — shares match the ratio of contributions. An alternative is a cooperation agreement with security; for smaller projects, even a simple sale with a share of future profit (earn-out) can work.
3. Execution: the investor manages renovation, division of the building into units (ownership declaration), and sales. The owner has agreed-upon inspection rights and reporting.
4. Profit split: after apartment sales, costs are covered and the remainder is split according to the agreed ratio — usually proportional to contribution value, sometimes with a bonus for execution performance.

What to watch before you commit

• Independent building valuation — your contribution is the basis of all math. Don't let the other side value it alone.
• Transparent budget and its oversight — right to review SPV accounts, approve change orders above a set limit, site supervision.
• What happens if apartments don't sell — rental scenario, project time limit, exit mechanisms (who pays whom and how much).
• Security for your contribution — until apartments are sold, the building is your only insurance: liens, SPV share, notarial records.
• Taxes — discuss contributing the property to the s.r.o., holding periods, and VAT on new units with a tax advisor beforehand, not after signing.
• Partner references — you'll want to see completed projects and speak with owners who already did a similar model with them.

For whom the model makes sense — and doesn't

It makes sense when the building has potential (good location, attic possibility, below-market rents), you're not in a hurry for money, and you want to extract maximum value. It doesn't make sense when you need money immediately (then direct purchase is better), when the building is legally blocked (resolve any court enforcement or co-ownership issues first), or when the partner's offer doesn't hold up against a simple sale — always calculate both scenarios.

How we do it

We run joint tenement building projects as investor and executor — supplying capital, the construction team (how we pick firms is described here), the legal structure, and the sales process. To the owner, we guarantee an independent valuation of their contribution, full reporting, and exit mechanisms written into the contract. Send us basic building details through our contact page — within a week you'll get a calculation of both scenarios: direct purchase vs. joint project, in black and white.