Best PA Rental Markets

[Jim Stevenson]

I'm moving back to my hometown of Doylestown (Philly suburb about 30 miles north) around this time next year. I'm looking for my first investment property and am concentrating on multi-families with 4+ units. I'd be interested to hear about everyone's experiences in the different markets throughout PA, specifically eastern and central PA (Philly, Harrisburg, Scranton, Reading, Pottstown, Williamsport, etc). A lot of these markets seem to have decent price points but I know that's partly due to lower income areas. Any tips or guidance would be appreciated. Thanks all!

[David Krulac]

@Troy Feldman

Presume you mean long term tenants...

I've had 30+ year tenants.  One said that the only way they are leaving is horizontal.  Another tenant was playing Power Ball Lottery one time when I was there.  I asked what are you going to do if you win PB (it was like 300 million at the time, I was expecting something like buy an island in Fiji)  He said, "I'm going to buy this place!"  And I said, "If you win PB, I'll sell it to you!"

I have a 23,  21, 18, 16, and 12 year tenants among others.  We rent mostly SFHs in neighborhoods that are predominantly owner occupied, low crime areas, and good school districts. We maintain the houses/apts and are attentive to issues particularly of a serious nature.

The winter before last we had two issues with furnaces not working on a Saturday night, one of which we had a service man there within 1 hour.  I talked with another LL, who had a similar Saturday night call who told the tenant, "We'll see if we can get somebody to come out on Tuesday."

Another time a tenant called Friday afternoon at 5 pm to say their furnace wasn't working, we had a brand NEW gas furnace installed by noon Saturday.

I pay the service companies that we use very promptly, but I demand good service and I don't call them out on weekends for minor stuff, but if there is a major problem I want it solve fast.   We had a sewer backup recently and I called a company that we used previously and they said did I want them to come the next day?  I said no I want you now!  They said but it will be overtime.  I said come now and I paid the OT to get the problem resolved as quick as possible.  This was in a multi-unit and nobody could use the plumbing, it was a critical issue that needed resolve now, not tomorrow.

Retired people usually stay a long time, they don't like to move and if the place is good for they, they'll stay.  House tenants bring their own appliances.  If a prospect says they have a grand piano, I say great bring it, because the more heavy, big stuff they bring the longer they stay is my theory.

One applicant's current residence had been for 16 years before me.   that's a person who doesn't like to move.  Other applicants have said, ( I always ask why are you moving?) because the LL is selling the property.  I always check to see if that's true, and if a tenants stayed 10 years where they are and are only moving becuase the place is being sold, they will probably stay a long time.

I bought a property in an excellent school district, and the first tenant who rented moved there because of the schools.  The father drove 70 miles one way to his work, just so the kids could go to that school.  They stayed for 13 years until both kids graduated, they moved away closer to the father's job.

I like the Harrisburg area, biggest employer is the state government and second biggest is the Federal government, lots of steady, good paying jobs.  Plus 2 Amazon places here and they are hiring 5,000 new employees in PA.