If you own a multi-unit property, you might be sitting on more opportunity than you realize. One way to unlock that potential is by converting your building into a TIC (Tenancy in Common).
TICs are an increasingly popular ownership model in places like Los Angeles and San Francisco, where high property values and limited inventory have made traditional ownership models less accessible. For property owners, a TIC conversion can open doors to new buyers, more flexibility and better returns.
Here are five smart reasons to consider converting your property into a TIC:
1. Sell Ownership Shares Instead of the Whole Property
With a TIC, you don’t have to sell the entire building to one buyer. Instead, you can sell fractional ownership interests, often one unit at a time. This setup can allow you to maximize your return by selling to multiple buyers, each of whom owns a percentage of the whole but has exclusive rights to their individual unit.
2. Make Homeownership More Accessible
In cities with high housing prices, TICs give first-time buyers a way into the market. Because TIC shares are usually priced lower than condos or single-family homes, they appeal to a broader pool of potential buyers, especially younger professionals, couples and individuals priced out of more traditional options.
3. Avoid the Hassle of a Condo Conversion
Converting a property to condominiums can be a long, expensive and highly regulated process. TIC conversions are typically much faster and less costly, with fewer city approvals required. It’s a more streamlined path to selling individual units while still offering ownership opportunities.
4. Retain Flexibility and Control
TIC agreements are highly customizable. As the property owner, you can work with legal counsel to define how decisions are made, outline responsibilities for maintenance and expenses and set parameters for future sales. This flexibility allows you to maintain greater control than you would with a standard condo setup.
5. Access Equity Without Letting Go Entirely
Not ready to sell the entire building? A TIC conversion allows you to cash out part of your investment by selling some units, while continuing to hold ownership of others, either as a landlord or future seller. It’s a way to generate liquidity without fully exiting the property.
See It in Action: The Hayworth, West Hollywood
One great example of a successful TIC conversion is The Hayworth in West Hollywood. We worked closely on this project to transform a classic multi-unit building into a thriving TIC community. The result was a beautifully updated property that attracted enthusiastic buyers, all while preserving architectural charm and maximizing long-term value for the owner.
If you’re curious about how a TIC conversion looks in real life, we highly recommend taking a look at The Hayworth.
Is a TIC Conversion Right for You?
While TICs aren’t ideal for every property or owner, they offer unique benefits that are worth exploring, especially in competitive real estate markets. Whether you’re looking to increase your ROI, reach more buyers or maintain flexibility in your investment, a TIC might be the right move.
If you’d like to learn more or get connected to real estate or legal professionals who specialize in TICs, feel free to reach out. We’re happy to help you explore your options.
TIC Property Conversion Services by Tiao Properties, Los Angeles
Tiao Properties is a full-service boutique real estate brokerage, management and investment firm with deep experience in multifamily and TIC (Tenancy in Common) conversions. From strategy to execution, we help property owners unlock new value through fractional ownership structures that align with today’s market demand. Whether you’re selling, holding or repositioning, our team is here to guide you every step of the way. We proudly offer services in Spanish, Mandarin and French to better serve our diverse Los Angeles community. Contact us here to learn more about TIC conversions and how we can support your investment goals.
