All Forum Posts by: Kevin M.

@Kristin Kenney well your first mistake was trying to reach a competent person in the city over the phone. You’ll probably get a different answer if you call tomorrow.  

You may need to get zoning for Single Room Occupancy. it would be a pain and take a long time but probably feasible. I don’t often work with owner-occupied so I don’t know all the zoning exceptions.

@Cory Lader I'll try and list some less-than-obvious things you should ask;

1) All Fees. Don't be fooled by a 6% management fee versus an 8% management fee. You need to inquire about ALL the fees a company charges as well as their rates for things like handyman work, cleaning, turnover, leasing fee, renewal fee etc. If the management company cannot articulate everything they will charge you with full transparency this can lead to a lot of friction down the road. Some companies try to bring clients in with a 6% fee then they ticky-tack charge for EVERYTHING.

2) Contract terms. Do they lock you in for a full year with a penalty to terminate? Do you have to use their contractors? Do they have a right to list your place for a commission if you decide to sell?

3) Startup costs. What are your onboarding costs and do you have a minimum account balance that has to be maintained?

4) Owner involvement. Do they require owners to handle security deposit? Do they require owners to sign leases? As an owner (especially if you're looking to scale), the more the PM can handle in your place, the better.

Hope this helps DM me if you have more questions. Good luck in your search. 

Jamal,

What are your goals? Do you want to become a licensed Salesperson? Do you want to work for a property manager? Do you want to be a passive real estate investor? I think your strategy should depend on what you ultimately want to do. 

If you don't know- I would lurk these forums for a little while and do a ton of online research. Message some BP members with specific questions to get a feel for what motivates you. 

There may be a single-room in owner-occupied housing exception that I'm forgetting- but you need a Rental License to receive payment for housing in Philadelphia. 

Your chances of getting "caught" for renting a room to a person in your home is slim-to-none, but if that person would make a complaint to L&I or would need to be formally evicted, you will want to have the rental license. The system should issue you a license no problem unless there are outstanding code violations. 

@Ioannis Babatsikos I too am a buy and hold investor and property manager in Philly. Sometimes it feels like the GIGANTIC transfer tax makes holding the only financially feasible option...

@Mayer M. following this because I'm curious. I have a friend who is a great Philly zoning attorney at a large firm. I'm sure he could help but it would cost more than a Bigger Pockets response...

Hopefully someone chimes in. Good luck

Is your employer based in Philly? You may be paying the wage tax whether you live there or not...

If you truly can avoid it- I would make a personal list of pros and cons and rank them. Don’t make a major life decision on $2800 over the next year. Rank all the things that are important to you and do a full analysis. And If you plan on investing in Philly real estate down the line you will have a much better feel for the city if you live here for a year. 

Thanks so much for the insight. I remember reading how the OPA defends their land value calculation by explaining the ratios. Doesn’t that eliminate the whole purpose of having separate valuations between land and improvement? If land is always valued at 28% of the improvement why even have the two measures?

 No not the entire unit. Both bedrooms have windows to code. Egress from each room window. A majority of the unit is below grade but a portion of it extends above grade for light/exit. This is very common from what I see in new construction everywhere-  but they focused on this for some unexplainable reason during my Special Exception hearing 

@John Yoo I just went before the ZBA last week for a Rooming House Special Exception. Did not go as well as I predicted. DM me and I can discuss more. They HATE basement dwelling units!!!