Hi, there! Joe White here from Grow Property Management, your trusted property management company in Philadelphia.
Recently, I submitted an offer on a property where the current situation is, frankly, pretty complicated. The property has a squatter living in it – someone named Quadir – who gained access without the owner’s or my company’s permission. This all came to light as my property management company was onboarding a new client, the current owner. The squatter’s presence has caused a lot of distress for the owner, who’s been dealing with months of an unauthorized person occupying a fully rehabbed property. It’s a nice home, and the stress has become overwhelming to the point where the owner has been forced to sell.
As a property manager and investor, I understand that this kind of situation brings a lot of risk. That’s exactly why the offer I submitted is very conservative. When making offers on tenant-occupied properties – especially those involving evictions or squatters – you have to take into account a range of serious concerns.
First off, there’s the unknown timeline. We don’t know exactly how long it’ll take to get Quire out. He’s already proven difficult, and on top of that, he has a criminal record, including violent charges. That raises safety concerns not just for the neighborhood but for anyone who might try to approach the property. You could end up walking into a very dangerous situation.
Second, during an eviction process, it’s incredibly common for the occupant to go radio silent. That means they stop submitting maintenance requests, even when there’s an urgent issue. We’ve seen firsthand how something as minor as a $15 wax seal under a toilet can end up causing thousands of dollars in water damage when left unresolved. And these problems are made worse by deferred maintenance, which is inevitable in situations where the occupant isn’t cooperating.
Third, you never really know what condition the property is going to be in until you regain access. The tenant could damage it intentionally – pour concrete down the drains, strip the copper wiring, or break appliances. And in some cases, people just leave without telling anyone, letting faucets run and causing extensive water damage that might not even be discovered until weeks or months later.
There’s also the risk that any damage could extend to neighboring properties. If you’re the new owner, that liability can land on your shoulders even if you had nothing to do with the original problem. Imagine buying a property, walking up to check on it, and finding out from the neighbors that it’s been vacant for a while – and worse, that their property has been affected too.
All of these unknowns are why any offer in this kind of scenario has to be low. It’s not about taking advantage of someone’s situation; it’s about covering your bases. You have to consider eviction costs, the time it’ll take to remove the occupant, holding costs like mortgage payments and property taxes, and the likelihood of repairs and cleanup before you can rent or sell the property again.
That’s the situation I’m in now. I made my offer with all these risks in mind. And it looks like the owner is considering it – he even asked me to formalize and send it over. I’m going to review it again to make sure it still makes sense given the uncertainty. But I feel confident that it’s fair from an investment perspective.
To anyone else thinking about making offers on properties with evictions involved: don’t shy away from them altogether. There can be opportunity in these situations, but only if you calculate your numbers very carefully. Factor in how long you’ll hold the property without income, how much you’ll spend during that time, and how much damage you might find once you gain possession. Make your offer reflect that risk.
And remember – just because someone’s being evicted doesn’t mean they’re a bad person. Life hits people hard sometimes. But unfortunately, a lot of the time, evictions do involve people who have little respect for the property they’re in. That’s just the reality, and as an investor, you have to protect yourself.
At the end of the day, I’m just a humble property management company owner here in Philadelphia, doing my best to answer rental property investing questions and help others navigate these tricky situations.
So as always, happy rental property investing, and stay sharp out there.
