- Home
- Property Types
- Multifamily 5+
Cost Segregation for Multifamily Properties (5+ Units)
Large multifamily repeats the same short-life components in every unit: flooring, cabinetry, appliances, fixtures and finishes, multiplied across the whole building. Add the amenity package and the site work around it, and a meaningful share of a 27.5-year building belongs in 5- and 15-year lives instead.
Where the value is in multifamily
Large multifamily is one of the asset types where our engineering team has deep experience.
- Apartment complexes
- Mid-rise apartment buildings
- High-rise apartment buildings
- Mixed-use apartment buildings with retail
Unit interiors repeat at scale
Carpet and resilient flooring, non-structural cabinetry and countertops, appliances, decorative lighting and window treatments are generally 5-year property. In a building with 5+ units they are not a rounding error, because every unit carries its own set.
Amenities are personal-property dense
Clubhouses, fitness rooms, lounges, package rooms, business centers and pool equipment carry furnishings, equipment and finishes that are typically short-life assets, documented component by component in the study.
Site work is a 15-year population
Surface parking, drive aisles, sidewalks, fencing, site lighting, landscaping, playgrounds, outdoor pools and site utilities are land improvements, generally 15-year property. Garden-style apartment complexes carry a great deal of it.
1 to 4 units or a short-term rental?
Properties with 1 to 4 units, and short-term rentals, are studied through Seneca's main site. Visit Senecacostseg.com
Commonly reclassified components
Representative of what an engineered study identifies in this asset class. Actual components and recovery periods depend on the property and are documented individually in your report.
What would a study find on your property?
Send the property details. Engineering prepares the estimate, and you receive a written, fixed-fee proposal within 24 to 48 hours.
Multifamily 5+ cost segregation questions
Still have a question? Ask Engineering.
Why does this site only cover buildings with 5+ units?
Seneca Cost Segregation splits its work by property. Buildings with 5+ units and all commercial property are studied through this site. Properties with 1 to 4 units and short-term rentals are handled at senecacostseg.com, and each site points you to the other when your property fits better there.
Is an apartment building 27.5-year or 39-year property?
Generally 27.5-year residential rental property, provided at least 80% of the building's gross rental income comes from dwelling units. A mixed-use building that falls short of that test is nonresidential real property with a 39-year life. The classification is your CPA's call, and the study gives them a component-level schedule that supports whichever conclusion the facts require.
Does qualified improvement property apply to apartment renovations?
No. Qualified improvement property is limited to nonresidential real property, so interior work in a residential rental building does not get the 15-year QIP treatment. Unit renovations still contain 5-year property, and the flooring, cabinetry or appliances you removed can be written off through a partial asset disposition.
We syndicate our deals. Can studies run across the whole portfolio?
Yes. Syndicators, funds and portfolio owners can have every property studied the same way, with one coordinator, by running them as a portfolio program, so every investor report rests on the same method and the same deliverable.
Get a Commercial Savings Estimate
Fixed-fee proposal in 24 to 48 hours.
- Prepared by Engineering
- Lifetime audit defense
- NDAs available
Request your estimate
Estimates are prepared by our Engineering team.
Request received
Engineering will review the property and send your written estimate and proposal within 24 to 48 hours.
Preview site: this form is not yet connected, so nothing was sent.