Buying A Quad With Tenants in the Philadelphia Area

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Buying A Quad With Tenants in the Philadelphia Area

Khenan Newton
Glenside, PA · Member since 2018 · 27 posts · 6 votes

Hey everyone!

I'm getting ready to purchase my first investment property that's a quadraplex and has 3 tenants in it. Each of them is on a month-to-month lease. I have it on contract with a FHA 203k loan with M&T Bank and was wondering about the eviction process in this case. I know it can be rather arduous to evict tenants in Philadelphia in general, but what if they're on month-to-month leases like on this property? Will evicting them be an easier process?

Thanks for any of your insight.
 

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Scott M.
Real Estate Broker · Rochester Hills, MI · Member since 2009 · 2k+ posts · 2k+ votes
4y

What is the reason you are going to evict them for?  Is it so you can live in the property or another reason?  I ask because in some places this is an important distinction.  

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  • Scott M.
    Real Estate Broker · Rochester Hills, MI · Member since 2009 · 2k+ posts · 2k+ votes
    4y

    What is the reason you are going to evict them for?  Is it so you can live in the property or another reason?  I ask because in some places this is an important distinction.  

    1Reply
  • Jonathan GreeneBusiness Member
    Real Estate Consultant · Madison, NJ · Member since 2016 · 6k+ posts · 7k+ votes
    4y

    If you need some Philly quad advice, get in touch with @Daniel Klein. He is doing an FHA house hack in a quad in the Temple area. He has not had to evict anyone, but can probably provide some good guidance on tenancies. He has all Temple students right now. As @Scott M. said, why are you thinking eviction already? Have you used the Dion McNeeley technique from his BP podcast to get them to sign new leases just under market value if they are good tenants?

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  • Khenan Newton
    OP
    Glenside, PA · Member since 2018 · 27 posts · 6 votes
    4y

    @Scott M.

    Thanks for your reply, Scott. I'll likely be moving into the 4th vacant unit, if that changes anything, however I want to evict all of them mainly to make the repairs process easier, but if there is a way to avoid that and have them pay the higher rent I would be charging (from $400/mo to $950/mo) id be open to that too.

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  • Khenan Newton
    OP
    Glenside, PA · Member since 2018 · 27 posts · 6 votes
    4y

    @Jonathan Greene

    Thanks for that reference to Daniel. And I'll have to take a look at that podcast to get filled in, because I'm really not familiar at all with the process of charging new higher rents to already present tenants

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  • Eric Chiang
    New to Real Estate · Riverside, CA · Member since 2021 · 54 posts · 28 votes
    4y

    Hi @Khenan Newton, have you considered cash-for-keys? That may be a faster/cheaper way to get the units vacant compared to evicting.

    Alternatively, you can consider being very transparent with the tenants about the market rents and your plans to renovate the units. Essentially saying that the tenants can either accept the market rents (increase to $950/mo) or end their month-to-month since you plan on renovating the units. Suggest double checking that the strategy you implement isn't illegal, as I'm not familiar with PA law.

    Happy investing!

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  • Carini Rochester
    Investor · Rochester, NY · Member since 2016 · 576 posts · 358 votes
    4y

    "Eviction" is a legal process usually reserved for uncooperative, non-paying (or other lease-breaking) tenants. You may just need to ask them to find another apartment. Nicely tell them your plans for the building. Explain that you will be gutting the apartment. It will be unlivable. Wish them every success in finding another place to live. Eviction is more expensive for you, could take a lot more time if the tenant decides to fight you in court, and the tenant may win the court battle, not you.

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