Tenants paying half the market rent in DC

Tenants paying half the market rent in DC

Washington, DC · Member since 2015 · 55 posts · 13 votes

I got my first 4-unit building in Washington DC a couple of months ago.  I am trying to get rid of the tenants who are paying half the market rent, and put section 8 tenants in the building.  The current tenants are paying less than half of what section 8 pays. For example, I have tenants paying $630, but I can get $1500 from section 8.  What is the best way to either raise the rents on these tenants or evict them? The property is under rent control, because I have other properties (single families).  The property currently costs about $3000 to run, and in total I am getting $2000 from the current tenants. When I fill the vacant unit, the revenues will jump to about $3500.  I put in about 130K in equity into this building so I am currently upside down. Washington DC is obviously tenant-friendly, but we got some great people here on BP so I figured this is a good place to start.

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Real Estate Consultant · Camarillo, CA · Member since 2010 · 2k+ posts · 1k+ votes
9y

What does the lease say?  

It may be a little late to tell you this, but we always audit every lease during the inspection phase.  You may be learning a very hard lesson, about proper inspection and due diligence.

How long is their lease for? If the building is under rent control, you need to check the law.  You can be sure that they will get a pro bono lawyer if you don't follow the rules.

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  • Real Estate Consultant · Camarillo, CA · Member since 2010 · 2k+ posts · 1k+ votes
    9y

    What does the lease say?  

    It may be a little late to tell you this, but we always audit every lease during the inspection phase.  You may be learning a very hard lesson, about proper inspection and due diligence.

    How long is their lease for? If the building is under rent control, you need to check the law.  You can be sure that they will get a pro bono lawyer if you don't follow the rules.

  • Investor · Fresno, CA · Member since 2017 · 19 posts · 7 votes
    9y

    I think Jeff is right.  You need a lawyer.  I would try a business law lawyer and a real estate attorney for free consultation.  You can find great lawyers at AVVO.com

  • Investor · Washington, DC · Member since 2016 · 175 posts · 73 votes
    9y
    DC publishes a 'guide to eviction' which states all the valid reasons you can get a tenant out. There's always cash for keys also, but that might take a lot.
  • Real Estate Agent · Staten Island, NY · Member since 2015 · 64 posts · 21 votes
    9y
    I would try to stay away from sec 8 , I find it can be lot of issues with the tenants , then you got to deal with government agencies. Try free market, you find yourself sleeping better at better at night. My 2 cents
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