All Forum Posts by: Kevin M.

I encourage most readers to just admire your efficiency instead of presuming they can get these results themselves.

I have not heard of a single investor able to get this kind of work done for $30k in Philadelphia. At least in the last 8 years or so. Congrats on your efficiency. You must have excellent connections, industry knowledge, experience, and project management skills to achieve this outcome for those numbers.

Paul, 

We are highly experienced in finding tenants in Philadelphia placing hundreds over the last few years. A few insights;

1) It's tough out there. 2023 and 2024 were both brutally difficult leasing years in Philadelphia. Supply continues to exceed demand throughout most of the city (with a few exceptions)

2) Your HCV strategy is certainly the hot thing right now. With payment standards significantly above market, many investors have shifted to this HCV focus. With more property owners competing for voucher holders, your HCV holders are currently the 'prettiest girls at the dance' and they essentially have their pick of quality rentals. For this reason- you really need a top-of-the-line rental to attract Section 8 tenants in Philly right now.

3) Historically speaking leasing activity spikes again around March. Hang in there.

Evan,

The best due-diligence you can perform is through trusted referrals. The wisdom of experienced local investors is even more valuable than any online research, Google Review, NARPM vetting you can perform on your own. 

A DM from an experienced investor like @Irfan Raza who can hopefully connect you with 1-2 other Philly-area property owners will go a long way. 

Personal referrals is how I make 90% of my business connections now whether it's contractors, insurance, mortgage brokers, etc.

@Stuart Udis is on point as always. Just to expand on his point about a glut of new housing- we are certainly feeling it when it comes to leasing and renewals throughout 90% of the city. 

We manage over 500 rental units in almost every zip code of Philadelphia, and our 2024 leasing year has been the most difficult in my 7 years of professional property manager experience. We have faced the longest average on-market times and fewest leads per day on market that we've ever recorded. In my professional opinion- supply currently exceeds demand throughout most of the city. Especially in the zip codes @Stuart Udis mentioned above, and around Temple University. 

New building permits have slowed down, relatively speaking, in 2024. I believe we are still 2-3 years out from the market equalizing toward the historic mean of leasing times. 

The easiest way would be to look up the permit history for the new construction. 

Type the address in to; https://li.phila.gov/property-history

This will give you the name of the contractor who pulled the respective permits for the work including the underlying Building Permit. You can then search for information about the contractor here;

https://li.phila.gov/contractor-lookup

In theory this will lead you to the builder. 

In reality it may lead you to some kind of shell company with no contact info or 'friend of a friend with a license', but it's at least a good place to start

Mark,

I'm a property manager in Philly. A few things I recommend asking during your PM screening process;

Are you licensed by the PA RE Commission and insured?

How long have you been leasing/managing in Philadelphia?

How many rental units do you currently manage in Philadelphia?

What is your in-house staff support? Admin, maintenance, legal, etc?

What are all the ways you (the PM company) make money?

How do you screen tenants and what is your eviction rate?

Are you a full service PM? Does the owner have ongoing operational responsibilities?

This should be a good start to your evaluation process. Please send me a message if you're interested in connecting directly

Interesting post thanks for sharing.

Do you believe there is a 'lack of natural market participants' in that particular price range and asset class in Philadelphia? Any theories as to why?

Will you continue to leverage your familiarity and historical success in Mt. Airy and continue projects there? Or do you plan to diversify into other areas?

 In fairness exterior leaks can be tricky to accurately diagnose no matter who is managing the process. We have worked with probably a dozen different contractors/roofers to resolve exterior water penetration issues and they have all been hit or miss. We have started including disclaimers to property owners when dealing with water penetration especially on interior walls that can come in from the roof, the siding, windows, doors, etc.

Generally if you're not happy with your PM you should trust your gut and try out someone else, but also keep in mind 2023 and 2024 to date have been the most difficult leasing years in the last 10 years nationally and especially in Philadelphia. On-market times have nearly doubled compared to 2022. So it's important to try to hash out what portion of the struggles are attributable to your PM, and which to market forces. 

@Alan Asriants this is accurate and thorough. Great work. A few other comments;

For Philly: It's best practice to include the required documents in the final lease packet and have the tenant sign or initial all to prove receipt. Tenants must receive; signed Certificate of Rental Suitability no more than 60 days before move-in, Partners in Good Housing Pamphlet, Lead Free/Safe Cert (if built before 1978), smoking policy for multi-unit properties, Bed Bug notice as you describe above.

For Pennsylvania: It's also best practice for property owners to include a lease provision that waives the Notice to Quit requirement of the PA Landlord Tenant Act. Don't forget to tell the tenant where you will store their security deposit.

@James Wise I am the operations manager for Otter Property Management in Philadelphia. We're a fast-growing mid-sized property management company specializing in single/small multi property management in Philadelphia. I'd be interested in connecting with you