All Forum Posts by: Kevin M.

 Very cool. You're the first person I've talked to who has done short term rental like that. We manage residential properties all over Philadelphia and a few units in Delaware county as well. 

@Sheryl Sitman you are correct that it doesn't have to be your primary residence as long as you're licensed but this will also require a zoning permit. The only real "correct" way to do it outside of zoning approval is for <91 days per year (and keep records) or for <180 days per year (and keep records) if you are running it as the primary resident.

1. Limited Lodging, Short Term.
   
   The accommodation of visitors conducted in a dwelling unit, the primary use of which is for household living, and where the total accommodations of visitors provided is for fewer than ninety-one (91) days per year but where the provision of lodging to any particular visitor is for no more than thirty (30) consecutive days. This limited use does not require a use permit.
2. Limited Lodging Home.
   
   The accommodation of visitors conducted by the primary resident of the dwelling unit, the main use of which is for household living, and where the total accommodations of visitors provided is for greater than ninety (90) days per year but where the provision of lodging to any particular visitor is for no more than thirty (30) consecutive days. In no instance may limited lodging be provided for more than one hundred eighty (180) days per year. For purposes of this subsection, the primary resident shall mean either (i) the owner of the dwelling unit that is entitled to a homestead exclusion pursuant to Code § 19-1301.1; or (ii) a renter (a) who lives in the dwelling unit more than half of the year and (b) who is authorized by the owner to provide limited lodging. A Limited Lodging Home is required to obtain a use permit. See Code § 14-104(2).

@Sheryl Sitman I wouldn't say I've noticed it any more than a few years ago. I used to manage a few AirBnB listings in the Temple area but they have since ceased operation & reverted to rentals. AirBnB is risky because most of the listings are operating illegally (not homeowner's primary residence) and I feel like it's one L&I staff meeting away from being largely shut down city-wide.

Do you have any connections you trust outside of the state? A starting foundation of a good GC, realtor, or property manager that you can truly trust and rely on will make a great starting point. They can then connect you with other quality help. I would leverage your existing personal connections and run from there

@Slawek Jakubowski Temple students far prefer the west side of Broad st- but at the right price point you can still attract them around 9th and Diamond. Roughly $400/room. 5BR homes are tough because most of them are zoned single-family so no more than 3 unrelated individuals can reside together in accordance with Philly code. Send me a message if you want to talk more specifics because there are specific marketing channels you want to target to get your place in front of the student population. 

I own a triplex near Temple. It has been a good cash flow property. I will advise to make sure your target property is zoned for the number of units you plan on renting. It should also have a CO for each unit. There are a lot of illegal multi-families that operate around the universities (well the entire city really...) and you can get burned if you ever have to evict a tenant or get an L&I complaint. Overall I've been happy with it, but it takes a lot of work on the management end with high student turnover.

This is mostly just to vent...

Can anyone explain how the OPA (Office of Property Assessment) comes up with home values? It seems to me that certain properties are targeted for higher increases. Particularly properties with an abatement (City jacks up the Land  Value). 

I've attached a perfect example. 

Photo 1- my property located in the middle of a north Philly block. My "Land Value" is up to 5x higher than other identically sized parcels on my street. 

Photo 2- My neighbor TWO LOTS DOWN. Same side of the street. Same lot shape, but my neighbor actually has a LARGER lot. Not only does he have a larger lot- he has a newer, larger building built there. We are zoned exactly the same. His "Land Value" is only 73% of mine. 

I appealed my value. Sent the board an example of 5 other lots on my block. Within 50 feet of my property. Same zoning. Same size (or larger). Same frontage. Same EVERYTHING. My appeal was denied. 

Any other stories dealing with the OPA? Am I taking crazy pills?

Eli,

L&I has been very difficult recently. A few investors I work with are swearing off the City after having to work through L&I issues. 

Go on the City website to see what "requires" a permit and what can be done without one. There are "EZ" permits which can be drawn more easily than permits requiring drawings/plans. No one seems to know exactly what type of permit is required for what type of work/renovation. You can talk with 4 different people and get 4 different answers.

When you enter into agreements with contractors, make sure to include "all required permits" and "compliance with all laws" as their responsibilities. Contractors are SUPPOSED to know what is required through L&I and they should obtain the proper permits. Make sure they are drawing permits and closing them out correctly. Best of luck

@Account Closed I'm slightly confused by your first scenario- but something to keep in mind is Philly's local laws against Airbnb operation outside of your primary residence (even then there are still limitations). So there are always regulatory concerns for running an Airbnb in Philly. Best of luck

Here is how my management services agreement is structured: 

1) Define terms ("manager", "properties", "portfolio", etc)

2) Term length

3) Authority of Manager- specifically spells out what the manager can do on behalf of owner (and exclusivity)

4) Responsibilities of Manager

5) Responsibilities of Owner

6) Property Maintenance (spending limits and expectations)

7) Compensation (spells out ALL fees that I would ever charge an owner)

8) Liability and Indemnification (protective of Manager which is industry standard at least in my region)

9) Insurance requirements for owner

10) Leasing (how manager will acquire tenants, non-discrimination)

11) Termination (notice requirements, etc)

12) Legal stuff (choice of law, merger clause, notice, etc)

Hope this is helpful I can expand on these if you're interested more