Short answer
You can sell it with the non-paying tenant in place, or evict first. Eviction needs a written notice to quit, usually 10 days for unpaid rent, and a court case if the tenant stays. You cannot lock the tenant out. Some cash buyers will buy occupied houses as-is, but expect a lower price.
Option 1: evict, then sell
For unpaid rent, the Philadelphia Municipal Court pamphlet says the notice to quit is ten days from the date the tenant receives it, unless the lease provides otherwise. If the tenant does not leave, you file in court. In Philadelphia, landlords must first participate in the Eviction Diversion Program and wait 30 days before filing if the issues are not resolved, or 60 days after the last covered month if payment came from the program's Targeted Financial Assistance.
You also need your paperwork in order, including the lease, a current business privilege license, a current housing inspection license for most rentals and the notice to quit.
Option 2: sell with the tenant in place
Some buyers, especially investors, will buy an occupied house, and some buyers handle the eviction themselves. The tenant's unpaid rent becomes part of the picture. The unpaid balance generally stays a claim you may be able to pursue after the sale, but you should have an attorney confirm how it is handled in the contract.
Expect a lower price than a vacant, clean house would bring, because the buyer takes the time and risk of dealing with the tenant.
Do not use self-help
A landlord may not change the locks, shut off utilities or remove belongings. Doing so can create legal problems that make the sale harder, and it can put the sale at risk if the tenant files a complaint. If you are tempted to pressure the tenant out, talk to a landlord-tenant attorney first.
A voluntary move-out agreement can be a legal alternative, with written terms the tenant signs. We cover that separately in the answer on cash for keys.
Weigh the timing
Eviction takes time that you may be paying for in taxes, insurance and a mortgage. Selling occupied may be faster but cheaper in price. There is no single right answer. Compare what the eviction path would net after months of lost rent and legal costs to what an as-is buyer offers.
Kaizen Home Buyers buys as-is, gives a cash offer within 24 hours and charges no agent commission. Ask us directly whether we can buy with an occupant in place, since that depends on the situation. Call 267-329-0084.
Questions for your attorney
Ask if you can pursue back rent after the sale. Ask if you should evict before listing. Ask what the lease says about entry for showings. Ask what notice the buyer needs to give if they take over. Ask how the tenant's deposit is handled in the contract.
Also ask what records to keep. A rent ledger, copies of every notice and proof of delivery help in court and help a buyer decide what to offer.