Lansdale, PA · Member since 2016 · 1 post · 1 vote
I am interested in purchasing rentals in the Philadelphia area. However, there are sooo many "rules" in the city that I am a little apprehensive.
There is a duplex that has caught my interest that is currently occupied with long term tenants on a month to month lease. I could get slightly more in rent, however, is it worth it to maybe loose a long term tenant? I will be seeing the property this week.
The property also has an attached garage that I don't believe the current landlord is charging the tenants to use.
I don't want to start off a new, hopefully long term, relationship with a sour note.
P.S. I haven't seen the property yet. I will be visiting this week.
I'm in negotiations now for a triplex with 3 long term tenants paying about $100 under market, but I would still be getting a little over 11% COC return at the current rent. The first floor pays a little more then the mortgage alone. She has been there 10 years and the gentleman on the second floor 5 years. I'm going.g to leave the rents where they are for as long as they stay. When they do move, I'll upgrade the units and bring the rents up to market
Just my opinion, but as long as you're cash flowing and the tenants are good, I'd do whatever I could to keep them
Agreed with the above statement by @Richard Fields. I have acquired properties in the past and currently where there is a long-term renter where the property is under rented. I keep them in there at the same rent. When I run my numbers I always base it on what current cash-flow is versus if I go in and raise rents and make upgrades.
If you do decide to raise rents however I would do it gradually.
I am interested in purchasing rentals in the Philadelphia area. However, there are sooo many "rules" in the city that I am a little apprehensive.
There is a duplex that has caught my interest that is currently occupied with long term tenants on a month to month lease. I could get slightly more in rent, however, is it worth it to maybe loose a long term tenant? I will be seeing the property this week.
The property also has an attached garage that I don't believe the current landlord is charging the tenants to use.
I don't want to start off a new, hopefully long term, relationship with a sour note.
P.S. I haven't seen the property yet. I will be visiting this week.
What "rules" are you referring to? This is a business and most businesses are governed by rules such as licensing, inspections, etc. Learn the rules and follow them to keep yourself out of trouble. Try evicting a tenant without having the rental license for that unit...the judge will make you get the license and start your eviction process over. On top of that, you won't be granted any late/past due rent during the period your unit was unlicensed.