All Forum Posts by: Heidi Kloeer

I was asked to post this for a member of the local landlord group.  More to follow soon:

Pottstown, Penn.—This morning, the Commonwealth Court of Pennsylvania issued an opinion
vacating and remanding a lower court’s ruling in favor of Pottstown in a
lawsuit challenging the borough’s rental inspection ordinance. This law
allows the borough to enter residents’ homes without cause and without
the residents’ consent. The Court also reversed the trial court’s orders
denying discovery to the Pottstown residents who challenged the law.
This makes sure that as the lawsuit now proceeds on remand, the
residents will have a full record of how these inspections are actually
conducted—and what inspectors actually do once they are inside peoples’
homes.

The Court also rejected the borough’s argument that, in order for the
tenants to challenge the law, residents would have to first submit to
the borough’s invasive rental inspections. After Pottstown tenants
Dottie and Omar Rivera and their longtime landlord, Steve Camburn,
refused to allow inspectors inside their home, Pottstown obtained
administrative warrants to search inside—but with no suspicion that
anything was wrong. The Borough also attempted to search the non-rental
family home of Pottstown residents Thomas, Kathleen, and Rosemarie
O’Connor without their consent and with no search warrant whatsoever.
These brave citizens sued Pottstown with the help of the Institute for Justice (IJ).

“To require Tenants to endure the inspections before challenging the
inspection requirement would render Tenants’ Article I, Section 8
privacy rights illusory,” the Court declared.

“We are thrilled that the Commonwealth Court has recognized the
Pennsylvania Constitution’s strong protections of property rights,” IJ
Attorney Rob Peccola said. “Pottstown’s rental inspections regime is a
way to get around constitutional protections for privacy rights, and we
look forward to litigating this case based on the facts on the ground.”

After the Pottstown residents compile a full record, there will be a
decision on the merits at the Montgomery County Court of Common Pleas.
This ruling could ensure that every Pennsylvanian who resists a search
of their home can only have the government enter with a warrant
supported by probable cause that something is wrong inside.

Craig, Pottstown is frustrating. My suggestion is to ask for help. Not from a new investor who mostly frequent this website. Ask the Pottstown code inspectors for the number of someone who will give you honest feedback and help. I heard there are no nonsense investors who will give it to you straight but be prepared to learn and not like some of their feedback. I talked to a new investor who sold his properties after a year because he realized the mistake he made after talking to this long term investor. I don't feel comfortable giving out names but the code inspectors should help. Cheers. HK

There are a few things you need to know for those investors who  just starting out in Pottstown or are thinking about owning in Pottstown.  About 50% of rental properties are rentals.  Most landlords do not run the proper credit checks so there are tenants that get evicted and jump from 1 landlord to the next. This is simple for the tenants and they share the names of the easy landlords throughout the town.  There is over a 10% eviction rate per year.  Almost a 20% landlord-tenant complaint rate per year. Most landlords only make a little money per month unless they bought dirt cheap or don't have a mortgage.  Most landlords really do not know what they are doing.  To be fair they can fix up the property, find an  average renter but that is where it stops.  If the court needs to be involved most never learned the basics.  If collections need to be involved they consider it bad debt and don't pursue collections.  The codes department in Pottstown is all over landlords but let owner occupied homes alone.  The Borough is not a friend to investors. The taxes are too high and just getting higher. Appreciation is low even in a good housing market

So that is the bad.  If you buy low, fix up at minimum cost, buy in right area,manage the property yourself, and do the property credit checks you can make a nice monthly income.

We have been buying multiunits in Pottstown for years and have met many of the landlords. I can honestly say there are less than 10 landlords in Pottstown that actually understand how to rent in an area like Pottstown and understand all aspects of being a landlord. Many think they understand but do not know the skills they are missing.

So ask other landlords and boro employees who are the landlords that know the entire process. My husband and I can give you suggestions by email if you already own properties.