Hello @Sumaira Ahmad, Nick Paros here, fellow Johnstown PA native and investor! I believe I remember meeting you and your husband at one of the Greater Johnstown Landlord Association monthly meetings. Welcome to the website, always great to see more local investors joining the group. @Account Closed is on here as well which is who originally told me about the GJLA meetings.
What is the average monthly charge for water/sewer that landlords are currently charging tenants in Johnstown? Or are most landlords opting to have the bill (still in the landlord's name) sent directly to the client? Thanks in advance.
We usually factor in a minimum of $125 to $150 for water, sewer and garbage (all 3 are lienable utilities in the city). We do stipulate in our lease that the included water is based off of normal use and usually add an amount of gallons/month we are including based off the number of occupants on the lease, but I'm not sure how hard it would be to get reimbursed for excessive use in the event that happened. I personally do not have the water bills sent c/o the tenant and the property address for city properties. For these properties, I would rather get the bill directly, factor the water/sewer/garbage into the rent amount and deal with non-payment issues at a rent level vs getting stuck with an inflated water bill. They do send owner copies out if a bill is not paid, but it's still a hassle to babysit. I think everyone has different ideas or ways of dealing with this issue on properties located within the city. It just comes down to which one you're most comfortable with. We do have properties located in Westmont and Richland that we have the bills mailed directly to the tenants. As others have mentioned, the issues you deal with in general are a lot less in frequency on the properties located in those areas vs rentals located within the city. I do not regret the purchase of any of my properties located within the city, they have been great investments overall. I will say there is alot more babysitting involved and filling vacancies with quality tenants has become alot harder over the last year or so. Our city properties tend to sit vacant slightly longer than a Westmont, Richland or Ferndale property, but we would rather have a vacancy than rush and put the wrong person into one of our units. A few important points for any rental no matter where it is located are 1) screen, screen, screen, 2) have a good, solid lease agreement and 3) have a good system set up that all your tenants are familiar with so they know what your responsibilities are as their landlord and what their responsibilities are as a tenant. Between these 3 points along with providing a safe, affordable and well-kept property, we should be able to fill our vacancies in any location with well qualified tenants. Sorry for the long reply. I guess I've had a little too much time to myself with everything going on :)
@Marlin Q. Parker, Sr., Esq., you had mentioned about local lenders. We have used Northwest Bank, Infirst Bank, Somerset Trust, S&T Bank and more recently USSCO Federal Credit Union. I was pleasantly surprised with the rates and terms that USSCO had and I liked dealing with them because they are also my primary personal bank. USSCO has been the only commercial lender that we've come across that was willing to do a fixed interest/term loan without a 5 year reset on the interest rate. The rates were very competitive, and that was before everything crashed in the last month or two. We are currently looking at refinancing our other loans with the current drop in rates.
Oh, I see. That's at least something. I've actually never heard of landlords being responsible for tenants' failure to pay their utility bills. I have been at GJWA meetings when landlords have come in with complaints but I thought it was for water being turned off when the property was empty, not sure. Are you an independent property manager, or do you work for a firm?
@Keith Leckey, sorry, that was directed at Sumaira Ahmad. But I appreciate the explanation, thank you! I agree, we are all trying to deal with this unexpected empty time in our own ways!
We're currently installing USB outlets in each room. While it is becoming a common feature here in the DC suburbs, how common is it in Johnstown rental properties?
Paint: What about paint colors? Are you guys using the basic white interior paint on all of your rentals?
Mary I am independent I have my own company . Yes the return in Roxbury and moxham / horner’s town great but not worth my sanity even though I have 55 units there in city . Few of them we had to run after . Richland properries you know Cost a lot more but easy maintenance and a totally different clientele
I am little bit confused who is talking to who ? But if marlin question was directed to me . I am on Facebook Sumaira project management LLC . I am new to big pockets forum so learning how to operate .
Mary the night mares are usually in moxham and horner’s town . People not disclosing their pets refusing to pay at times , subleasing property leaving us utility bills . On each property we spend bare minimum 10 thousand dollars regardless where they are located Overall we have great Tenants for the quality and high maintenance we provide . But some people lack respect and tend to lose it at the end of their lease z
@Sumaira Ahmad That is a shame. I'm familiar with Richland, understand the difference. It is too bad, the difficult areas at one time were lovely neighborhoods and I hate to see the problems. I grew up in the Johnstown area and recently returned after being away for a long time. But difficulties like you describe don't make for a good landlord experience. I will look for you on Facebook.
@Sumaira Ahmad I'm sorry, I have not invested in any yet. I have been watching Johnstown multi-family dwellings for a while, mostly in Moxham because of the price, but between the sewer upgrades and necessary repairs and what looks like a slow rental market there, I haven't taken the plunge. The prices are so low but I believe the costs and the headaches look high.
I think @Keith Leckey has also mentioned he has properties in Ferndale and I know a couple others with properties in the Ferndale area with generally positive experiences. That is another area that looks like a possible option.
@Greg Lipps, What has your experience been like in Windber? That's an area I am not currently in but I have been looking at recently as another option.
@Nicholas Paros All positive experiences so far, but I only have one unit and I am fairly new. The tenant I have has been long term and no issues. Windber is a very nice town and the school district is great. Really good for families. My next property will be in Windber if I can get financing when the time is right.
You cannot charge a pet fee for service animals. Key words here are pets and animals. If they are truly a service animal, they are not a pet. It is not legal to charge a fee for these type of animals. Check out petscreening.com. It is free to use for the landlord and takes out the guess work when you have a prospective or current tenant ask about service or emotional support animals.
Is there anyway to work around the Johnstown sewer upgrade escrow due at closing? I am considering purchasing another property but the cost to upgrade the sewer (average cost $5K) coupled with normal costs (for repairs and renovations) and the low rents makes it impractical. In addition, the more expensive properties (with the sewer upgrade completed) are infeasible because the low rents frustrate cash flow. There has to be an exception that I am not aware of. Thanks in advance.
I have a couple properties in the area surrounding area of Johnstown and I recently had 1 vacancy and was able to fill it in 5 days with a very well qualified tenant. We do have pretty strict standards but we are usually able to find qualified tenants pretty quickly. Now I did mention that my properties are outside the city limits of Johnstown so if you are looking at something in the city, I can’t speak to that and it may be a different story.