Real Estate Wisdom Update-6-27-18

Real Estate Wisdom Update-6-27-18

Wealth. Legacy. Lifestyle.

 

Action Inspiration

“The dream is free. The hustle is sold separately”– Unknown

Landlording in a Renter-Friendly State

If you were curious about where Pennsylvania ranks on the spectrum from renter-friendly to landlord- friendly, the data shows that the state skews more in favor of the tenants. According to a RentCafé study, New Jersey (#17) and Pennsylvania (#18) rank neck and neck.

Our neighbors in Maryland (#32) and New York (#39) ranked as more landlord-friendly. The landlord is most king-like in Arkansas (#51) where tenants face criminal charges for not complying with vacate notice. See full rankings here.

With the pending “good cause” eviction legislation before Philadelphia’s City Council, some are questioning whether PA may be leaning more towards tenants. The proposed regulation is supposed to combat tenants getting displaced by overzealous developers.

The bill would limit “good cause” for eviction to the following reasons (note-this is not a complete list):

  • The tenant isn’t complying with a specific part of the lease
  • The tenant isn’t paying rent
  • The tenant has caused damage to the property
  • The landlord or their relative is moving into the unit

In 2016, Philadelphia ranked #4 among large cities in the number of evictions (10,264) per year according to the Eviction Lab at Princeton. The #1 spot for evictions in a medium-sized city within PA went to Reading (1,143), with Delaware County cities Chester (#12 rank, 125) and Drexel Hill (#20 rank, 35) falling within the top 20.

For buy and hold investors, the time to shore up your property management processes is now. It is only going to get more complex. You may need more systems in place to manage move-ins and move-outs. If you own properties in multiple counties, it also means keeping track of the regulations for each town. You will need to manage your portfolio more like a business to maintain returns.

May Key Market Statistics

(Statistics shown are for rolling 12 months ending in May)

(19143) West Philadelphia-Cobbs Creek/Cedar Park

 July 17 July 18% CHG
Total Sales44453220%
Lowest Sales $11K$14K24%
Highest Sales $1,545K $800K-48%
Average Sales $141K$154K9%
Days On Market 4637-20%

(19104) West Philadelphia-University City/Mantua

 July 17July 18 % Chg
Total Sales 15518117%
Lowest Sales $13K$14K8%
Highest Sales $2,400K$1,250K -48%
Average Sales $255K$253K-1%
Days On Market 4538-16%

(19139) West Philadelphia-Walnut Hill/Haddington/Mill Creek

 July 17 July 18% Chg
Total Sales 23227318%
Lowest Sales $5K$8K50%
Highest Sales $607K$585K-4%
Average Sales $89K
$109K22%
Days On Market 6041 -32%

Upper Darby

 July 17 July 18% Chg
Total Sales 1,0381,0925%
Lowest Sales $14K$21K50%
Highest Sales   $415K$435K5%
Average Sales $127K$139K9%
Days On Market 7156-21%

Chester

 July 17 July 18% Chg
Total Sales 2002105%
Lowest Sales $5K $5K0%
Highest Sales   $165K$255K55%
Average Sales $53K$57K7%
Days On Market 57 56-2%

 

From the desk of Veronica Woods, Daniel Woods Real Estate

About Veronica
Veronica comes from a family of real estate investors. She is passionate about helping clients create wealth, legacy, and a dream lifestyle through real estate. Veronica is a licensed realtor in PA and NJ. She earned her MBA at The Wharton School and has a BA in Economics from Northwestern University.