Vacant Properties in Philadelphia PA
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Vacant properties in Philadelphia refer to empty land or structures that are unoccupied. These vacant properties can cause numerous issues, including health and safety hazards. However, staying up-to-date with property maintenance, mortgage payments, and taxes is vital to avoid owning a vacant home.
At times, life takes its course, and we have little to no control over things, which can lead to owning a vacant property. If stuck with vacant land or property, know you have many options. Furthermore, review each route for dealing with a vacant property in Philly to determine what’s best for you.
What’s Considered a Vacant Properties in Philadelphia?
Vacant properties come in various forms. Additionally, some vacant properties in Philadelphia owned by private owners, while others owned by the city. In order to consider a property vacant, it’ll have to be empty of any residents. Vacant properties can range from empty lots/land, unoccupied houses, commercial buildings, and empty warehouses. Furthermore, in Philadelphia, there are roughly 130,000 vacant properties, including homes and lots.
Vacant Lots in Philadelphia
The city of Philadelphia has roughly 40,000 vacant lots. Most of the vacant lots once had homes or buildings on the land. Over time, structures deteriorate, living conditions become uninhabitable, and require demolition, often leaving vacant land. Vacant lots in Philly, typically used for storage or new construction houses. Vacant lots are still subject to property taxes and stormwater charges.
In Philadelphia, city-owned vacant lots can be acquired by the neighbor if they maintain them for a specific period of time. The term is adverse possession; the individual must possess the land for 10 years with at least 5 years of continuous land maintenance. There are many options available when owning or purchasing vacant land in Philadelphia.
Vacant Houses in Philadelphia
Vacant properties in Philadelphia are a burden on the community. These properties sit empty, with the chance of attracting rodents and other animals. Additionally, vacant homes are hard to look at and pose the potential for criminal activity.
Additionally, when a house sits empty, the serious repairs continue to add up. These homes sit through the cold winter seasons without heat. When a property sits empty without working water and heat, the pipes freeze and the walls begin to crumble. Typically, there’s no long-term benefit to owning vacant houses; cut ties with the headache property and move on.
Issues with Owning Vacant Properties in Philadelphia
- Health Problems: As a property sits through rain storms over time, mold and mildew may form.
- Safety Issues: Since vacant homes deteriorate, it presents the issue of the building falling apart, with someone trapped inside or walking past the front porch, being hit with debris.
- Potential Criminal Activity: Empty properties attract thieves, drug dealers/users, or any other form of criminal activity that’s conducted out of sight.
- Animal and Rodent Problems: While a property sits vacant, it attracts animals. These animals look for a dry and warm place, which means entering the vacant house.
- Paying taxes on something that serves no purpose. Usually, when owning a vacant house, there’s no income. Furthermore, leaving the owner with the expenses of taxes or mortgages.
- The chance of squatters. Homeless individuals or people who simply want to live rent-free typically occupy vacant properties in Philadelphia.
How to Avoid Having Vacant Properties in Philadelphia
At times, it’s nearly impossible to avoid owning vacant property. We live life on its terms, sometimes life comes at us fast. Additionally, we may lose employment or face serious medical emergencies. Therefore, it can lead to falling behind on our bills. So at times, we may not have the ability to afford owning a vacant property, but there are things we can do to minimize the chances.
- Stay up-to-date with your mortgage, utility bills, and property taxes in Philadelphia.
- Regular home maintenance reduces the chances of being overwhelmed and other associated issues.
- If you own a rental property, have competitive rental rates to minimize vacancy. Additionally, be very professional in handling any tenant concerns right away.
- Have a family member or friend reside in the property to avoid it being unoccupied.
- Lastly, the best option to avoid vacant properties in Philadelphia is to sell the property as-is. Since vacant homes can be a headache and a financial burden. At times, if not maintained, homeowners accumulate fines on the vacant property.
What to do with Vacant Property in Philadelphia
Fix and Flip: If it’s within your budget, consider fixing and flipping the vacant home. In order to complete a home renovation, you need cash or funding from a bank or lender. This route allows for the greatest profit on the property but comes with a multi-month project. Vacant homes typically need a full rehab, which can cost between 80,000 and 100,000 dollars, depending on the section of the city. Only consider this option if you have the funding and the contractor to complete the work promptly.
Fix and Hold: The fix and hold route is similar to fix and flip. The only difference, instead of selling the property, the homeowner would hold onto it and rent it out to tenants. Fix and holds are excellent for passive income, but depending on the amount of work done, it can take years to feel the financial benefits. The fix-and-hold route is ideal for seasoned investors or areas where the property values continue to rise.
Sell with an agent: Owning a vacant home comes with many responsibilities and issues. Therefore, most homeowners decide it’s best to sell the house and move on with life. Agents can sell your house as-is. Furthermore, they can list the home on the market without making any repairs. Inspections can be waived, truly selling the home in its current condition.
Worth Owning Vacant Properties in Philadelphia?
If a property is properly maintained, holding onto a vacant property can provide value. Most homes in Philadelphia continue to increase in value. However, it’s vital to complete maintenance tasks to protect the integrity and structure of the home. When deciding whether to keep the property or not, consider ongoing expenses such as property taxes.
Never get overwhelmed by owning a vacant property in Philadelphia because there are multiple ways out. Vacant properties can present many issues, from health to safety, so it’s crucial to maintain and secure the home. Board up all windows and doors to prevent unwanted guests, including people and animals. When the time comes to move on from the vacant land or home, weigh out each option.
If you can fund the project and employ a trusted contractor, consider making necessary repairs to get the home to its “after-repair value”. Once completion of repairs, the homeowner can maximize profit on the sale. Lastly, if there’s a desire to rid yourself of the vacant home burden, contact me today to establish a solid plan for your vacant property. Therefore, submit your info below or call 215-509-9510.
