All Forum Posts by: Jessica F.

@Ryan Cameron Thanks!

@Dede Christensen I agree with the contract clause about long term guests which I already have in the contract. But what happens if the tenant is over 18 and technically doesn't qualify to be on the lease--how much can I/should I charge for that extra adult who is living there? For instance, if a single mother and a child age 19 moves--the child doesn't work and have any credit and is in college etc, what can I charge for that adult child being an additional tenant?

@Account Closed My intention was not to refuse renting to married couples, it was to find out what the rule of thumb is for increasing rent when there are multiple tenants (spouse, partner, or children) because I was told you can increase rents for more tenants per unit since more tenants results in more wear and tear on the apt itself. Pls re-read my original post. Thanks.

In Philly, you will find a good mix. As someone else mentioned, some landlords pay it and some don't but the bottom line is that the water is in the owner's name regardless. I know some landlords who require a tenant renting a SFH to put the water bill in their name while also keeping their name on the bill as well so the entire water bill is the tenant's responsibility but the owner is still up to date if the bill is being paid or not.

Other landlords who own multi-units tend to either foot the water bill or use something like the RUB system or pay only up to a certain dollar amount toward the water bill and require the tenant to pay the rest but the water bill still stays in the owner's name because it's a multi-unit so it cannot be assigned to just one tenant. 

I used to pay the water bill for my tenants but realized that one tenant loved having her boyfriend over every day and he was taking showers on my dime. Also, I recently put laundry hookups in a unit and as someone once mentioned to me, I am not in the business of doing subsidized living or expenses for anyone. The fact is that tenants will become a lot more careful and aware of their water usage when they are the ones footing the bill. They will think twice about having their guests shower at their place everyday and doing their friends and boyfriend's laundry.

Hope that helps.

What is the standard approach when renting to an unmarried vs married couple? My thought was that if it's an unmarried couple, they must individually qualify to be a tenant or else their name cannot go on the lease as opposed to a married couple where their combined income is treated as single income and therefore would only need to qualify together. (Side note: is it ok to ask the married couple to provide a copy of their marriage certificate as proof?)

When you are renting to a couple, whether they are married or not, what is the rule when raising rent? If rent is usually $700 per month, how much can you raise the rent for additional person such as a spouse, partner, or child? I read somewhere that you can increase rent by 10% but I don't know if that applies for Philly as well. 

Lastly, I have a clause in my lease that says if a person not listed on the lease is found to be occupying the residence as a long term guest that there will be a $100 fee charged for each month. I also specify that anyone who spends more than 15 days/nights at the residence per month or has "tenant privileges" (such as a key to the unit) is considered a long term guest and will incur the fee. Is there a rule for how much of a fee I can charge? I make the fee high to detract tenants from moving in any deadbeat friends/boyfriends, etc (I've learned from experience).

My rental is in Philadelphia so I am specifically looking for tips and info related to that market.

As a fellow Philly investor, I think what you need to start with is the property assessment website to check for taxes owed etc which is seems like you have already done. Typically, you would next want to find out if they property is free and clear and if there are any liens etc. This would be done at City Hall in downtown Philly for free or through a title company which can range from about $60 (last owner search) - $120 (thorough search) depending on the exact search you are seeking. 

If you go downtown to city hall, you want to head to the mortgage recording office (1st fl) if you want to check if the home is free and clear. If you want to check for liens and such, you head to the Prothonotary office on the 2nd floor and you can ask the desk clerk to show you the files and websites that they use and you can use your own due diligence to search and lookup the property--they will not do it for you. Their offices close at about 5 so you want to get there early enough to give yourself time to search without rushing.

Good luck.

Welcome back. Let me know if you have any deals in Philadelphia.

Looking forward to connecting with you.

I work with different agents for different neighborhoods. It is most important to me that an agent knows the neighborhood thoroughly (as if they were a resident) to get the best possible value. I can suggest an agent depending on where you are looking.

Also, are you the flipper yourself? If so, do you mind me asking how (or with whom) are you flipping such a partner, etc?

I agree with another poster on here--I personally do not think a condo purchase is the wisest investment to make in this case. You seem to be torn between wanting to have a social life by being in Center City vs being a strategic investor. First off, this word young you are using it as of only old and boring people live outside of center city--I live in the Northeast section (a 30min commute from downtown) and it has never stopped me from having a social life or enjoying center city life and I am only a few years older than you but I was just about your age when I bought my first house (a duplex turned tri that I currently occupy and rent out as well). 

You can live anywhere in the city and still enjoy everything it has to offer. I would suggest maybe looking into University City which is just minutes away from downtown and in a hot pocket of college students and millennials. They have duplexes, triplexes, and quads right around the same price range for that condo you are thinking about (depending on price and location it may need some work possibly) but that would be a wiser investment for someone who wants to invest and see a nice ROI.

Like someone mentioned earlier, there are so many rules and red tape when talking about getting a condo particularly relating to HOA fees and regulations so I would strongly advise you do your research and weigh out the pros and cons in this case.

I am not telling you not to buy a condo if that's what you really and ultimately want but you came here to BP for advice from other investors and I would bet the greater majority of them would all advise against it from a strategic standpoint and esp as a new investor. The condo can always be a purchase later down the line...

Best of luck in whatever decision you choose!

Welcome to BP! @Rebecca Sole