A way people handle this in NJ is to increase the rents and force people out (depending on what the laws in the city/county allow - some have restrictions on how much you can increase), or you can offer cash for keys. If you also want to take care of the families living there and don't want to force them out, have a conversation with them. Let them know you have to increase rents, but you want to take care of them and see if you can increase rent within their means. These are just a few things I have seen our investors in NJ do.
It all depends on what your intentions are and what outcomes you are looking to produce.
Also, those things may be easier said than done or may not be so black and white when you go to do them. If you want someone to chat with and bounce ideas off of / get some advice, just let me know. I can connect you with an investor or one of our property managers who has dealt with these situations before. We are happy to help!
