I have a few questions I was hoping any NJ/PA investors could answer for someone getting started.
1) anyone know a qualified property manager to oversee my potential property in warren county, phillipsburg area ? (Collection of rent, finding tenants, etc)
2) I know NJ is very tenant friendly. Is it too tenant friendly where I should just avoid it?
1) I'm not familiar with that location
2) That's a silly question to ask. It seems like you are looking for excuses to not get started. Surely, there are plenty of investors in NJ that make money in REI, despite the "tenant friendly" laws
@Jon Kelly silly to say I’m looking for excuses to get started. It’s a valid question PA vs NJ.
Thanks for your valuable insight.
@Rigo V. , didn't realize the question was choosing between PA and NJ...
In general, PA is more tenant friendly. However, if you find a reputable property manager, then it becomes less of an issue. My advice would be to not be afraid of overpaying for a quality property manager. Paying an extra 1-2% for a high-quality PM will help to avoid headaches
Rigo, I recommend you look at more than just the legal aspects. If you use good tenant screening procedures you should be able to minimize the impacts of evictions.
If you are looking at a buy and hold strategy, I recommend you look at the average rents, tax rates, vacancy rates, cost of insurance, and other things that will impact your bottom line. For example, I posted the same fictional apartment for rent on craigslist to gauge rental interest. Over 48 hours I received 14 inquiries for Bethlehem, nine for Allentown, three for Easton, but only two for Slatington- so you can't apply the same vacancy rates for all four townships. It doesn't mean there aren't successful investors in all of these townships, it just means you have to take a different approach and use different planning considerations when evaluating your deals. I also recommend going to some of the local meetups - you will learn a ton just from seeing other people's successes and failures.
NJ is only tenant friendly in that it is that much more important that a landlord comply with all of the rules and regulations (mishandling security deposits is always a big mistake landlords make). Courts are a little bit more generous on time to move out after an eviction, or defenses to an eviction, but generally, if you find good tenants, it doesn't matter if the state is tenant friendly or not. Bad tenants are a pain in any state. The law is still in favor of a landlord with a defaulting tenant, it's not like the tenant wins every case. You can read up on tenants rights laws and see what you would be up against and then weigh your risk. Vetting tenants well is your absolute best bet no matter where you decide to invest.
I agree with @David Ribardo , besides the legal aspect, there are so many other considerations, like economic condition, demand and supply for rentals, availability of good / affordable contractors, quality of property managers, etc.