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Weatherizing Your Home For The Summer

Tue, 30 Apr 2024 16:30:59 GMT

Weatherizing Your Property for a Cool Summer: Tips for Northern Homeowners

As the warmth of summer approaches, it’s time for Northern homeowners to prepare their properties for the seasonal shift. While most people associate weatherizing with winter, it’s equally important to ensure your home stays comfortable and energy-efficient during the hot summer months. From sealing air leaks to optimizing insulation, here are some essential tips for weatherizing your property in the North for a cool and pleasant summer.

Seal Air Leaks: Air leaks not only let cool air escape but also allow warm, humid air to enter your home, making your cooling system work harder. Inspect windows, doors, and any other openings for cracks and gaps. Caulk or weatherstrip these areas to prevent air leakage and improve energy efficiency.
Insulate Attics and Basements: Proper insulation is key to maintaining a comfortable indoor temperature year-round. In the summer, insulation helps keep cool air inside and prevents hot outdoor air from seeping in. Ensure that your attic and basement are adequately insulated to minimize heat transfer.
Install Energy-Efficient Windows: Windows are significant contributors to heat gain in homes. Consider upgrading to energy-efficient windows that are designed to reduce heat transfer and block harmful UV rays. Additionally, installing window treatments such as blinds or curtains can further enhance energy efficiency by providing shade and insulation.
Use Fans Strategically: Ceiling fans and portable fans are cost-effective ways to improve air circulation and create a cooling breeze indoors. In the summer, set your ceiling fans to rotate counterclockwise to push cool air downward. Use portable fans to direct airflow toward occupied areas, allowing you to raise the thermostat temperature without sacrificing comfort.
Maintain Your Cooling System: Before the summer heat sets in, schedule a professional inspection and maintenance service for your air conditioning system. Clean or replace air filters regularly to ensure optimal airflow and efficiency. Consider upgrading to a programmable thermostat to regulate indoor temperatures and save energy when you’re away from home.
Shade Your Home’s Exterior: External shading can significantly reduce solar heat gain and lower indoor temperatures. Planting trees strategically around your property can provide natural shade and enhance curb appeal. Installing awnings, pergolas, or trellises over windows and outdoor living spaces can also block direct sunlight and keep your home cooler.
Use Reflective Roofing Materials: If you’re due for a roof replacement or renovation, consider opting for reflective roofing materials. Light-colored roofs or those coated with reflective coatings can reflect sunlight away from your home, reducing heat absorption and lowering indoor temperatures.
Minimize Heat Sources: Appliances and electronics generate heat when in use, contributing to the overall thermal load in your home. Minimize heat gain by using energy-efficient appliances, turning off unnecessary electronics, and avoiding activities that generate excess heat during the hottest parts of the day.
Seal Ductwork: Leaky ducts can result in significant energy losses and reduce the effectiveness of your cooling system. Inspect your ductwork for leaks, gaps, or disconnected joints, and seal them using mastic sealant or metal tape. Properly sealed ducts ensure that cooled air reaches its intended destination efficiently.
Schedule a Home Energy Audit: Consider scheduling a professional home energy audit to identify areas for improvement and prioritize energy-saving upgrades. An energy audit can help you pinpoint inefficiencies in your home’s thermal envelope and HVAC system, allowing you to make informed decisions about weatherization and energy conservation measures.

By taking proactive steps to weatherize your property for the summer, Northern homeowners can enjoy a cooler, more comfortable indoor environment while reducing energy consumption and utility costs. Whether you’re sealing air leaks, upgrading insulation, or optimizing your cooling system, investing in weatherization now can pay dividends in energy savings and home comfort for years to come. So, gear up for a cool and enjoyable summer by preparing your home to beat the heat!

How to Make Your Rental Stand Out for the Spring and Summer

Fri, 29 Mar 2024 18:59:36 GMT

5 Ways to Make Your Property Stand Out as Spring and Summer Approach

As the temperatures rise and nature begins to bloom, it’s the perfect time to elevate the appeal of your property. Whether you're preparing to sell, rent, or simply want to enjoy a refreshed atmosphere, spring and summer offer fantastic opportunities to enhance your property's allure. Here are five effective ways to make your property stand out as the vibrant seasons approach:

1. Enhance Curb Appeal

The exterior of your property is the first thing visitors notice, so it's crucial to make a stellar first impression. Start by tidying up the landscaping: mow the lawn, trim bushes and hedges, and add fresh mulch to flower beds. Plant colorful flowers that thrive in the warmer weather to add pops of color and charm. Additionally, consider giving your front door a fresh coat of paint or adding stylish house numbers and outdoor lighting fixtures to create an inviting entrance.

2. Create Outdoor Living Spaces

Take advantage of the warmer weather by creating outdoor living spaces that encourage relaxation and entertainment. Whether you have a spacious backyard or a cozy balcony, investing in comfortable outdoor furniture, such as lounge chairs, dining sets, or hammocks, can transform your outdoor area into a retreat. Add finishing touches like outdoor rugs, throw pillows, and potted plants to create a welcoming ambiance where residents and guests can unwind and enjoy the sunshine.

3. Add Seasonal Décor

Embrace the spirit of the season by incorporating seasonal décor into your property's interior and exterior spaces. Swap out heavy winter textiles for lighter fabrics and bright, cheerful colors that reflect the energy of spring and summer. Consider placing vases of freshly cut flowers throughout your home, displaying vibrant artwork, or updating throw pillows and bedding with floral patterns or tropical motifs. Outside, hang festive banners, string lights, or place potted plants and hanging baskets to add a touch of seasonal charm.

4. Upgrade Outdoor Amenities

Make your property a desirable destination by upgrading outdoor amenities that cater to warm-weather activities. Install a barbecue grill or outdoor kitchen area for al fresco dining experiences, set up a fire pit or outdoor fireplace for cozy gatherings on cool evenings, or add a swimming pool or hot tub for refreshing dips and relaxation. Providing these outdoor amenities not only enhances the enjoyment of your property but also increases its appeal to potential buyers or renters seeking a resort-like lifestyle.

5. Highlight Natural Light

Maximize the influx of natural light that comes with the longer days of spring and summer by showcasing your property's windows and outdoor views. Remove heavy drapes or curtains and opt for sheer or lightweight window treatments that allow sunlight to filter in while maintaining privacy. Rearrange furniture to capitalize on natural light sources and create bright, airy spaces that feel open and inviting. Additionally, consider adding mirrors strategically to reflect light and make rooms appear larger and more spacious.

By implementing these strategies, you can make your property stand out as spring and summer approach, creating an inviting and appealing environment for residents and guests alike. Whether you're looking to sell, rent, or simply enjoy your home to the fullest, embracing the vibrancy of the seasons will enhance the beauty and functionality of your property. So, seize the opportunity to refresh your surroundings and make the most of the warmer months ahead!

Unveiling Pittsburgh's Real Estate Market

Thu, 29 Feb 2024 18:46:04 GMT

As Pittsburgh, Pennsylvania, undergoes a renaissance, its real estate market stands as a beacon of opportunity for investors seeking long-term returns and stability. In this article, we delve into the dynamics of Pittsburgh's real estate market and outline the best strategies for investing in this burgeoning city.

Understanding Pittsburgh's Real Estate Market:

Pittsburgh 's real estate market is characterized by steady growth, affordability, and a diverse array of investment opportunities. The city's economy has transitioned from its industrial roots to a hub for technology, healthcare, and education, attracting a steady influx of residents and businesses. This influx has fueled demand for housing and commercial properties, driving up property values and rental rates in many neighborhoods across the city.

Best Ways to Invest in Pittsburgh Real Estate:

Rental Properties: With a growing population and a strong rental market, investing in rental properties is a lucrative option in Pittsburgh. Neighborhoods such as Lawrenceville, Bloomfield, and Squirrel Hill offer attractive opportunities for buy-and-hold investors. Single-family homes, multi-unit properties, and apartment buildings can provide steady cash flow and long-term appreciation potential.
Fix-and-Flip Projects: Pittsburgh's affordable housing stock and burgeoning demand for renovated properties make fix-and-flip projects an appealing investment strategy. Investors can purchase distressed properties, renovate them, and sell them for a profit. Areas undergoing revitalization, such as the East End and the North Side, often present opportunities for profitable fix-and-flip projects.
Mixed-Use Developments: Pittsburgh's urban core is experiencing a resurgence, with mixed-use developments driving growth in areas like Downtown, East Liberty, and the Strip District. Investing in mixed-use properties that combine residential, commercial, and retail spaces can capitalize on the city's vibrant urban lifestyle and attract a diverse tenant base.
Student Housing: With several universities and colleges in the area, Pittsburgh has a strong demand for student housing. Investing in properties near university campuses, such as the University of Pittsburgh and Carnegie Mellon University, can provide stable rental income and consistent occupancy rates.
Commercial Real Estate: Pittsburgh's growing economy and diverse industry sectors create opportunities in the commercial real estate market. Office buildings, retail centers, and industrial properties are in demand as businesses seek space in the city's thriving business districts and industrial corridors.

Tips for Successful Real Estate Investment in Pittsburgh:

Conduct thorough market research to identify emerging neighborhoods and investment opportunities.
Build a reliable network of local real estate agents, contractors, and property managers to support your investment endeavors.
Stay informed about local zoning regulations, development projects, and economic trends that may impact property values and investment prospects.
Diversify your investment portfolio to mitigate risk and capitalize on various opportunities within the Pittsburgh real estate market.
Be patient and take a long-term view of your investments, as real estate markets may experience fluctuations over time.

Conclusion:

Pittsburgh's real estate market offers a wealth of opportunities for investors seeking to capitalize on the city's growth and prosperity. Whether you're interested in rental properties, fix-and-flip projects, mixed-use developments, student housing, or commercial real estate, Pittsburgh provides a fertile ground for strategic investment. By understanding the dynamics of the local market and implementing sound investment strategies, investors can position themselves for success in Pittsburgh's thriving real estate landscape.

Baltimore Housing Market Forecast for 2024

Wed, 31 Jan 2024 21:13:24 GMT

2024 Baltimore Housing Market Forecast

The in-house article you all have been waiting for is here! This is the 2024 housing market outlook for the Baltimore area based off of our expertise and research! With all that said, we have been through a lot in 2023. Whether it was interest rates soaring to the highest they have been in over 20 years or the extremely limited housing supply, it seemed as though it was never going to get better. However, we started to see rates start to decrease as we approached 2024 and even though the housing market is not going back to pre-COVID conditions anytime soon, things are indeed starting to look slightly better.

Baltimore's Home Buying/Selling Market

Baltimore has a great ratio of people who desire to live there vs cost of an average property in the area. Additionally, despite the spike in interest rates the Baltimore real estate market is always growing. According to the data by Bright MLS, the standout feature of the Baltimore Metro Area market in November was the remarkable surge in prices, marking the fastest growth since May 2022. This significant development underscores the resilience and vitality of the local real estate sector. In fact the median price has increased tremendously over the years and is still increasing on a month-to-month basis. According to Norada Real Estate Investments, t he median sold price in November reached an impressive $369,250, reflecting a substantial 8.9% increase compared to the same period a year ago. Additionally, there was a marginal 0.1% uptick in prices from October to November, indicating sustained positive momentum in the market. Despite this increase in home values investors are buying up properties left and right. Similarly to the Philadelphia housing market the inventory of homes available is low while the amount of days those homes stay on the market has decreased as well. According to Norada Real Estate Investments, remarkable efficiency in the selling process, being two days faster than the same period in the previous year (median days being 11) as well as a 1.6% decrease from the previous year and less than half of the inventory available in 2019. Lastly, as with almost all areas in the US, home builder sentiment is down due to the high prices on both materials and homes, so it is no wonder that "flipping" has been preferred in Baltimore over building from the ground up for 2023.

Baltimore's Renters Market

The renter's market is strong in Baltimore, in fact 51% of households in Baltimore are renter occupied, which is higher than the national average of 36% for renter-occupied housing. This indicates that a small majority of the cities population elects to rent instead of buy. Additionally, with the high interest rates, higher than average home prices ( The median rent in Baltimore is $1,785 per month ), and the average price-to-rent ratio is 17.3 which indicates a market that still prefers renting over buying! As a renter this definitely indicates that currently it makes sense to keep renting, while as a property owner you know that you have a rental property in a strong market.

Baltimore's Housing Market Outlook for 2024

The Baltimore area is filled with tons of businesses, schools, and hospitals and it takes a steady population to make sure everything is running smoothly. That is why it is no surprise that the population has slightly increased over the past years and looks to stay on that trend going forward. Furthermore, according to Real Wealth, Baltimore created 53,900 new jobs, this was a growth rate of 3.98 percent, which was 3.59 percent greater than the national average job growth rate of 3.84 percent.

Buyer's and Seller's Forecast

With Baltimore being primarily a renters market at the moment sellers might want to retain the properties and try to rent them out so you can keep your asset but also make some money off of it. Additionally, as a seller you can still take advantage of the strong market since according to Norada Real Estate Investments, 49.4% of sales surpassed the list price. As a buyer, if you are looking to buy a place to live in it might make sense to wait it out a bit. Since interest rates seem to be going back on the decline its only a matter of time until something that is an ideal fit for you enters the market. However, you should make sure to keep your eyes peeled as inventory will most likely remain limited. If you are buying for the purpose of investment just make sure to plan accordingly to ensure you are still retaining a profit on your investment. According to Norada Real Estate Investments, 29.2% of sales occurred under the list price , which shows there is still an opportunity to buy a fixer-upper that you can either fix and rent or fix and flip. Nevertheless, as a seller we advise that you don't sell unless you absolutely need to or you are going to be very satisfied by your return on investment. As buyers, we advise that you never buy something you cannot afford and to have a budget/plan in place before you even start your home search.

Renter's Forecast

As mentioned above Baltimore has a very strong market for rentals. The growing population as well as all the major establishments throughout the city provide a demand for workers and students that need a place to live, and while Baltimore is a very easy place to commute, there is still a strong demand for housing to accommodate the population that lives there. Moreover, Baltimore is still considered a fairly reasonable place to live when it comes to cost of living so landlords can price their rents competitively while still providing much more affordable options than those that are avaialble in other major cities. Additionally, it is always a safe bet for investors to buy properties near the major universities to supply students with off-campus housing while ensuring that they will pay the rent by having a parent cosign their lease (with that said nothing is ever certain).

Philadelphia Housing Market Forecast for 2024

Thu, 28 Dec 2023 21:40:32 GMT

2024 Philadelphia Housing Market Forecast

This in-house article is the 2024 housing market outlook for the Philadelphia area based off of our expertise and research (Look for our Baltimore Forecast in the next month's blog)! With all that said, we have been through a lot in 2023. Whether it was interest rates soaring to the highest they have been in over 20 years or the extremely limited housing supply, it seemed as though it was never going to get better. However, we started to see rates start to decrease as we approached 2024 and even though the housing market is not going back to pre-COVID conditions anytime soon, things are indeed starting to look slightly better.

Philadelphia's Home Buying/Selling Market

The 2023 housing market in Philadelphia was still being fueled by buying surge left by the pandemic. However, buying became more difficult due to consistently increasing interest rates coupled with the decreased supply of available housing. Despite these factors Philadelphia is still one of the "cheaper" big cities with it having a median home value of around $270,000. This is $130,000 less than the current national average. Moreover, to combat the increasing interest rates the prices have decreased roughly 4% since last year . Luckily, interest rates are slowly starting to go back down and while prices might stay the same or increase with these lower interest rates, that could lead to an increase in housing supply due to more people being ready to sell a home knowing someone will buy it relatively quickly. On the other hand it is proving to be more and more difficult to build a home in Philadelphia due to an increase in laws and regulations, as well as the price for labor and materials being at an all time high. From 2022 to 2023 builder sentiment in Philadelphia went from 76 out of 100 to 45 out of 100, according to the National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index. This in turn leads more people into rehabbing existing homes rather than building on unimproved land.

Philadelphia's Renters Market

The rental market has kept its strong presence in Philadelphia! According to a study, renters take up 47% of Philadelphia, Pennsylvania real estate, occupying a total of 289,341 units, while homeowners live in 323,784 properties . This ratio shows just how strong the Philadelphia renters market is and the importance of rental housing to the Philadelphia area. It has also been seen that 79% of renters find themselves in the same home as they were renting the year before with another 14% moving to another property in the same county. This is great for investors as it shows peoples willingness to stay which in turn helps the landlord avoid frequent turnovers. Another aspect of Philadelphia that helps its renters market is that it is home to around 53 colleges in and around the area. This not only sustains the need for rental properties but also offers investors guarantors for leases (such as cosigners) which help ensure that the rent will be paid and arrive on time.

Philadelphia's Housing Market Outlook for 2024

Whether you are in the buyers or renters world Philadelphia is an extremely seasonal marketplace. The highest peaks of the summer months, the DOM (days on market) averages around 35 – 45 days. Again, Philadelphia follows the classic wild summer selling months and slow winter months in terms of real estate values and sales. For real estate investors or buyers looking for good deals, shop during the coldest months of the year. The depths of real estate winters in Philadelphia bring tough times for sellers. Last winter (202 2 into 2023), Philadelphia suffered from a staggeringly long DOM of 70 Days in the month of February. This was the longest DOM in 5 years. From our standpoint we see the same thing with renting during the winter, it is not only much slower but also there are some owners who end up offering incentives or decreased rents in order to get people into their units.

While Philadelphia is still considered one of the poorer "big cities" it still finds itself growing and improving. Philadelphia's non-farm employment rose by around 139,000 jobs in April 2023 on a year-over-year basis to 3.09 million. In April 2023, the unemployment rate in Philadelphia was 3.1%, according to the Bureau of Labor Statistics. That's a 1% decrease year over year. The national unemployment rate in April 2023 was 3.4%, down 0.2% year over year. These promising employment statistics should not only benefit the area overall but will also increase the demand for people to both buy and rent housing in Philadelphia.

Buyers & Sellers Forecast

Philadelphia has a very strong housing market and a surprisingly affordable price point for being considered one the the "bigger U.S. cities." This is reflected by the Philadelphia housing supply that should hopefully see an uptick in inventory with the decreasing interest rates. It is also important for buyers and sellers to stay patient during these times. Sellers should adjust their prices accordingly but not settle for an offer they aren't completely content with. Even though prices are lower than they were a year or two ago, the decrease in interest rates should help out as well as the extremely limited inventory. Buyers can also benefit from being patient as inventory should increase and those same houses that they were looking at before will become more affordable. Nevertheless, as a seller we advise that you don't sell unless you absolutely need to or you are going to be very satisfied by your return on investment. As buyers, we advise that you never buy something you cannot afford and to have a budget/plan in place before you even start your home search.

Renters' Forecast

Philadelphia has a very strong rental market which is perfect for investors and renters alike. From an investors standpoint, the average rents are high enough to profit off of your investment while also being in a position to be able to sell your property for a very decent return if needed. From a renters standpoint, the rent in Philadelphia is much more reasonable than in other "big cities" while also having more units/houses than those same comparative cities. Additionally, with jobs increasing and unemployment decreasing it should attract more people to the area that might not be ready for the commitment of buying a home. Moreover, the schools in and around the area help sustain the rental market, especially in the areas close by to those schools and appealing to college students.

Renting During The Slow Season

Thu, 30 Nov 2023 17:59:20 GMT

Tips and Tricks for Finding Renters During the Slow Winter Season

Social Media

Stay on top of all your social media platforms. If you feel as though you aren't getting enough responses from your posts and stories try joining and posting into groups such as "properties for rent." This way you are getting your listing more looks by the people who are most likely to want to rent it. Staying active on social media is also a great way to keep people aware that your listing is still active.

Virtual & Video Walkthroughs

Providing virtual or video walkthroughs are great ways to "preview" the property. This helps with getting people who are hesitant too come see the property take a look and see if it is suitable for them. This also works great since people are less likely to be out and about during bad weather. Just make sure your walkthrough is done professionally (good video quality, format, and clear narration) and you cover as much of the house as you can.

Community Outreach and Referrals

Going to local events can be a great way to find people interested in moving to properties in or surrounding that area. Moreover, the in-person aspect might not produce as many leads but better quality one since you are able to do an informal screening yourself. Referrals can also be a great tool! Sometimes other renters or people in general have friends looking to move other times an added incentive (such as a discount in the next months rent or some other type of referral fee) can be a great tool especially if you are really desperate or are struggling to find someone.

Offer Different Rental Terms

Sometimes people do not want to sign a yearly lease during the offseason especially if they know it will renew on a year-to-year basis. You can appeal to this grouping of people by offering a 6 month/18 month lease. Even though the goal is to find a renter that will stick around for a while, this strategy helps ensure that your property doesn't sit vacant.

Discounts or Other Deals

If you are having a really tough time and are getting desperate you can try to offer reduced rent, one-time discounts, or incentives such as taking away a pet fee or including utilities with the rent. We do not recommend this approach in most cases as it might compromise the quality of applicants that apply, however, these incentives might give your listing the push it needs to get someone to fill that vacancy.

Conclusion

SCREEN YOUR APPLICANTS! No matter what approach you choose to try from the above make sure you screen your applicants. This includes running their credit, criminal history, rental history (prior judgements, evictions, and payment history), and their income. It is not worth filling the vacancy if it is going to cause more problems down the road. If you need any more help with renting out your property or any other steps in the rental process don't hesitate to reach out to your friends at ANCHOR!

LCP Program Philadelphia

Thu, 26 Oct 2023 19:51:04 GMT

PGW's Landlord Cooperation Program

This brief article will go over what the LCP by Philadelphia Gas Works is, how it works, and how to apply for it! We consider this to be an essential for all landlords in Philadelphia as it limits your liability and can potentially save you hundreds if not thousands of dollars.

What is the Landlord Cooperation Program?

When it comes to paying gas utilities, tenants usually switch the service into their name and pay it as they would their electricity. However, when it comes to water bills we always recommend that the owner keeps the bills in their name. This is due to the fact that if a tenant switches the water into their own name the owner would then stop receiving bills and becomes unaware of any delinquencies that might be accruing on the account. What makes this even more significant is the fact that despite the bill being switched into the tenants name the water bill balance will always stay with the property which makes the owner liable for whatever amount may have been accrued. This could lead to very high balances, potential shutoffs, liens, and headaches. Moreover, did you know that in Philadelphia the gas bills work the same way as the water, and if that's the case then why do tenants switch the gas to their name, wouldn't it cause the same issue?

That's where the LCP program by PGW comes to the rescue! By enrolling in this program the outstanding balance on a tenant's gas bill will stay with them even after they move out of the property. This way the owner isn't liable for paying bills that they did not accrue themselves.

How does the Landlord Cooperation Program work?

This program works quite simply, once you apply you are covered going forward regarding any balance your tenant might accrue and not pay while living at your property. It is important to renew your rental licenses and update them in the LCP system. The LCP system is usually fairly reliable with notifying you but in any case you want to make sure you are keeping everything up-to-date in the system to avoid any complications.

How to Apply for the Landlord Cooperation Program.

You can apply by going to LCP through Philadelphia Gas Work's website. You will just need the name associated with whoever owns the property (individual or entity) as well as an up-to-date rental license. If you are having trouble with uploading the rental license (which can sometimes happen) you will need to reach out to a LCP representative or someone form Licenses and Inspections to get that cleared up (who you need to reach out to depends on what the problem might be). Once everything is uploaded your account will be active almost instantly!

In Conclusion

As far as we are concerned this program is the perfect way to protect you from any negligence you might encounter with renting out your property. We highly recommend all landlords to at least look into this program since we have seen it help countless people make sure that they aren't being charged for something they did not use.

Managing your rental property can be overwhelming. Whether it's staying on top of everything you have to renew, accounts you need to mange, collecting funds, coordinating maintenance, or any of the other functions involved, it definitely ends up taking up a lot of your time. We here at ANCHOR want you to know that we are here to help you with all the above and much more. Reach out to us today to see how we can help you with your investment!

Prepare Your Home for Winter

Thu, 28 Sep 2023 18:55:27 GMT

Winter is Coming!

As we enter fall we know that winter is just around the corner. Usually around this time is when we see a greater influx of work orders especially as they pertain to the weather outside. In this article we will go over some of the best practices for home owners and renters alike, these tips and tricks are aimed to help you keep the costs and headaches low as you enter the colder months.

Service Your Heating System

Whether you contact us or your own HVAC person, we recommend that you service your system to make sure everything is good to go before it starts working at its max. The sooner you do this the less likely you will have to wait in line once the HVAC companies are at their busiest. You should also make sure your air filter is up-to-date and maintained at all times.

Inspect The Roof

If you do this yourself, make sure you are safe and taking all the precautions you need to in order to ensure your safety. Check for any holes, damage, missing shingles, damaged flashings, and etc... Getting this caught early could save you lots of time and money in the future. You can also hire a professional to inspect this for you, just make sure its someone you can trust and wouldn't give you false information!

Seal and Caulk Doors and Windows

Making sure your doors and windows are properly sealed/caulked is a great way to ensure that the heat stays in and the cold stays out. This will help keep your gas or electric bills lower by hopefully requiring your system to run less.

Clean Out Your Gutters

The gutters should be cleaned at least once in the spring and once in the fall. Properly cleaned gutters can help you avoid leaks and blockages.

Turn Off Exterior Water Sources

If you have outdoor faucets or any other type of system that draws water from inside and pushes it out make sure you shut off the valves for those water sources, drain them out (by turning them on once they are shut off), and then insulating them with some type of cover.

Store Equipment

Things such as grills, lawn mowers, and other outdoor equipment can get really damaged by the cold weather. If you can try to store these items in either your basement or outdoor shed, it will help them last longer and stay in better shape.

Don't Procrastinate!

If you see a problem or feel like something could turn into a problem, make sure to address it before it gets worse. If you are with our management company please inform us of any concerns to make sure they get addressed and if you are reading this article for your own purposes make sure you follow all of the above to prevent bigger headaches in the future!

PHA Section 8 Process

Tue, 29 Aug 2023 17:28:46 GMT

PHA's Section 8 Process from Start to Finish

In this article we will outline the whole section 8 process from start to finish including some pros and cons towards the end! We have dealt a lot with PHA and we definitely know all the ins and outs so feel free to contact your friends at ANCHOR in case you have more questions or need some help even after reading this article!

The Process

What makes a property eligible for section 8? The answer is any property is eligible for section 8 as long as it passes PHA's qualifications which will be outlined below. You can either advertise your property as one that only accepts section 8, one that accepts either (section 8 or non section 8), or one that doesn't accept section 8.

If your property does in fact accept section 8 than you need someone with a section 8 voucher to be interested in your property. The important contingency with the voucher is that it specifies the amount of bedrooms the voucher is good for and the dates the voucher is eligible for. If the voucher is for more bedrooms than the property has in it (such as a 3 bedroom voucher for a 2 bedroom house) than the voucher might still be acceptable but you can expect it to be for less rent (out of PHA's portion). If the voucher is for less bedrooms than what the property has in it (such as a 3 bedroom voucher for a 4 bedroom house) than that voucher will most likely not be applicable for that property. If the voucher is eligible for your property and the applicant wants to proceed you are good to proceed with the process. We here at ANCHOR like to screen the applicants before we commit to them to make sure they have the qualifications to be good tenants going forward. We do this by running a background check to see if they have any prior evictions, criminal history, and that they do have some type of funds coming in so they will be able to pay their portion of the rent.

Before we proceed any further we have to make sure that your property has a rental license and the owner does not have any tax holds. Then, once that's confirmed, we have the applicant drop off their voucher and application so we can fill it out. Once it's filled out they usually come back to sign it so we can send it to PHA through our portal. Once they receive the application and confirm that everything is correct then they schedule a date for the initial inspection.

When PHA comes out for the initial inspection they have a specific checklist of items that they are looking for at the property, the results can vary depending on the inspector that comes out to the property so we wait for them to give us a checklist (if the property fails) so we know exactly what repairs need to be done. PHA will schedule a re-inspection date if the property failed the first time around so all repairs need to be done by that date or the property gets placed under abatement by section 8 preventing you from being able to go forward until the necessary repairs are made.

Once the property passes the inspection PHA will determine what portion of the rent is paid by them and what portion will be paid by the tenant. Once that is determined they will schedule a lease signing with the tenant and will usually send the lease a couple days before the signing. Move-in payments are usually at the owners discretion. We recommend collecting a security deposit and first month's rent but in some cases you might want to collect last month's rent as well.

Pros and Cons

Just like with anything in life dealing with section 8 has its own pros and cons. One of the main cons with section 8 is the regular maintenance that needs to be done. Section 8 will schedule an inspection once every 2 years and if your property fails inspection they can withhold their portion of the rent. This can become a real problem if you are dealing with a tenant that causes damage to the property because either way it will be on you, the owner, to rectify those damages. Additionally, the tenant needs to recertify every 2 years. This is usually not as big as a problem because they know that if they want to receive the support, they need to do the recertification. The main pro with section 8 is the fact that you know that they will pay a portion of the rent until the person moves out or is evicted. This can bring good peace of mind especially if you have dealt with delinquent tenants in the past. We know that dealing with PHA can be complicated and we are hoping that this article helps! As always you can contact your friends at ANCHOR to help you with the investment that you put lots of time and money into.

Condominiums vs Homes - What's The Right Investment for You?

Mon, 31 Jul 2023 20:15:08 GMT

What is a better investment, a condominium or a house?

The answer depends on how much risk you are willing to put into your investment and how much of a reward you are looking to get out of that investment. This article will go over a ton of the pros and cons for each as a rental property and then finish of by comparing the both of them to hopefully help you get all the information you need for your decision!

Condominium

A condominium (also called a "condo") is a large property complex comprised of individual units, and each unit is owned separately. Ownership usually includes a nonexclusive interest in certain "community property" controlled by the condominium management.

Condominium management is usually made up of a board of unit owners who oversees the daily operation of the complex, such as lawn maintenance, snow removal, and building updates. Below we will explain what we have personally seen as pros and cons for using a condo as a rental property.

Pros Cons

Amenities Condo Fees

Security Harder to Show The Property

In-House Maintenance Potentially Longer Wait Times

Equity Land Ownership

Well Maintained Community Rules

Parking Parking Fees

Lower Upfront Cost Higher Monthly Cost

Able to Make In-Unit Improvements Can't Alter Shared Space

Single-Family Home

Owners of single-family homes purchase the home structure and the land it sits on, while condo owners own just the unit they live in, not the larger building or the land on which it's built. Pictured above is a row-style single family home but a conventional stand-alone house can also be considered a single-family home.

Pros Cons

Fully Owned Fully Responsible

More Space More Maintenance

Worth More Costs More

Can alter the building/lot Liable for building/lot

No Additional Monthly Fees No amenities

Less Rules and Regulations Lower chance of Enforcing Complaints

Less Security Easier to Show the Property

Summary

Choosing between a condo and a house should be based of what works best for you at the time. As yourself questions such as: Will I live there before I rent it out? Will I want to sell it one day? How much am I willing to put down to buy a property? How much liability do I want to take on?

From our standpoint a house is definitely a more profitable investment in the long-run because if you are able to pay off the mortgage you won't have to worry about monthly fees aside from utilities, meanwhile, for a condo you will always have some type of monthly fee that is subject to increase every year. However, if you care more about limiting the amount of responsibility and liability you undertake a condo offers more security since you only have to worry about the maintenance inside the unit. If you have more questions or are looking to start or continue your investment journey, don't hesitate to reach out to us to see what the best fit is for you!

Closing On Your Property

Fri, 30 Jun 2023 19:47:37 GMT

This is everything you need to know when it comes to closing on your property!

Introduction

You have searched the area, went to countless open houses, and have finally decided on the property you are getting. After finding your lender and getting all your numbers lined up you are officially ready to go to settlement. While it might seem like everything is said and done with there are still a couple more steps you have to take in order to ensure that everything goes through.

Things that need to be done prior to closing

The following is a list of things that need to be done prior to closing;

Home Inspection (make sure it includes termites, radon, mold, and lead)
Make sure that any contingencies from inspection or otherwise are resolved
Determine sales price and any other fees needed (such as lawyer fees or other charges that would be due at the time of closing)
Figure out your mortgage (who's your lender, what's your rate (interest & principal and make sure you LOCK IT IN), what kind of loan, term of the loan, down payment required, points paid, tax returns filed, sufficient income, and much more that you should ask your lender about before deciding anything)
Choose a title company that will do a title search, send you a closing statement (all the funds you will need at closing), and provide a location from where you can sign all of the paperwork needed
Do a final walkthrough to ensure you are getting everything that you had agreed upon in your sales contract

Closing

A few days prior to closing the title company will send you a closing statement outlining all of the fees and exactly how much you need to bring to closing. The closing funds need to be with certified funds, usually a cashiers check will work best for this, it can be obtained from your bank. Once you determine the exact time you closing will take place you will show up with your realtor and someone from the title company to go over all of the paperwork and have you sign it. Make sure to get copies of everything and to read through all of the paperwork before you sign it.

After Closing

Now that you have the keys the title company will send off all the necessary paperwork to make sure everything is recorded properly such as the deed and the mortgage paperwork. However, you aren't quite done yet! Now that you officially own the property make sure that all the bills associated with the property are going to the appropriate address as well as fixing any repairs that the seller wasn't responsible for fixing on the sales agreement. Moreover, if the property is not your primary residence, rather an investment, make sure to contact us at ANCHOR so we can take a lot of these burdens off of your shoulders as well as make your life easier going forward!

Refinancing Your Property

Tue, 30 May 2023 19:58:30 GMT

Is refinancing your property the right move for you?

Refinancing the mortgage on your house means you’re essentially trading in your current mortgage for a newer one – often with a new principal and a different interest rate. People choose to refinance their homes for different reasons, in this article we will list some of those reasons as well as our recommendations for choosing a specific path. Additionally we will explain the process once you do decide to refinance.

Lower Your Interest Rate

Probably the most common reason people refinance is to lower their interest rates as interest rates get better. Always keep an eye out on interest rates and how they are trending to ensure you get the most out of this option!

Changing a Loan Term

This involves refinancing from a longer term (typically 30 years) to a shorter term (typically 15 years) or vice versa (15 years to 30 years). Going from a higher term to a lower term loan usually results in a better interest rate as well as paying lest interest over the entire term. People going from a lower term to a higher term are usually keen on lowering the monthly payment despite the overall interest being significantly more.

Changing the Type of Loan

This option could be done for multiple reasons such as going from a fixed rate to an adjustable rate or by going from an FHA loan to a conventional loan. If you are refinancing for this reason make sure the type of loan you are opting towards is the right fit for you!

Cash Out

This is the most popular among investors as it helps you lower the interest rates on your home as well as using the difference (what your loan was worth to the new loan type) to either invest back into your home (improvements & repairs), use the cash to invest into other properties, or even just pocket the cash for yourself!

Refinancing Process

Step 1: Is to choose your lender, do this by shopping around and seeing who offers you the best rate or you can always use your preferred lender. Once you choose the lender ask them about what paperwork they want in order to go through with your application. These documents usually require your financial status such as paystubs, W-2s, bank statements, and other forms of income.

Step 2: If you find a rate you like make sure to remember to lock it in, if you opt to float your rate you could run the risk of getting a higher rate, however, if things go well you could possibly get rewarded with a lower rate.

Step 3: Once your lender receives your application they begin the underwriting process and order for your home to be appraised to determine its value to the lender.

Step 4: Closing your loan could entitle some final closing costs or even some money that is owed to you so be aware of everything to make sure everything goes by smoothly.

If you have any questions feel free to contact us so we can either answer them or refer you to one of our trusted resources to ensure you are getting the most out of your investment!

The Zoning Process in Philadelphia

Fri, 28 Apr 2023 19:53:56 GMT

Zoning can be a complicated process so it is good to know exactly how it works, what needs to be zoned, and how you should go about getting zoning for your property!

The following will serve as a quick reference guide to the zoning process in the Philadelphia area. However, if you have any questions about zoning or are looking to get your property re-zoned please reach out to a zoning lawyer to best serve your needs and give you proper legal advice for your situation!

What is Zoning?

Zoning refers to municipal or local laws or regulations that govern how real property can and cannot be used in certain geographic areas. Zoning can be different in every county so make sure you are aware of the specific rules and regulations in your county!

What doesn't require zoning in Philadelphia?

Before we dive into all the different situations for which you would need zoning lets first list out all of the things that don't need a zoning permit in the city of Philadelphia (according to the official website of the City of Philadelphia government). However, it is still important to make sure there aren't any other requirements or other types of permits needed to do any of the below.

Alterations to an existing structure that do not change the area, height, floor area, or current legal use.
Fences at or below the height allowed by the Zoning Code.
Canopies or awnings (120 sq. ft. or less) for one-or-two-family dwellings.
Sheds, playhouses, pergolas, and similar structures (in the rear yard and 120 sq. ft. or less) for one-or-two-family dwellings.
Concrete or other hard surface materials, such as driveways and patios.
Decks. A deck can’t be more than 12 in. above the ground or over any basement or other story.
Equipment like generators or air conditioners (as long as they are not within a required setback from the property line and service the property).
Exterior painting of murals (as long as the mural is not serving as advertisement).

The following are the different situations that would require a zoning permit

This link is a questionnaire (by the city of Philadelphia) that will help you determine which kind of permit you need for your particular situation. For all of the below, i f it gets denied you would need to file for an appeal to the Zoning Board of Adjustments and are recommended to do so with a legal specialist. Additionally, for some of the below an accelerated plan review would speed up the process to be reviewed within 5 business days but is an additional $1,050 ($350 is due once you apply the rest to be paid once approved).

Change of Use Permit

The above permit is required if you are increasing or decreasing the amount of units at your property, changing from commercial to residential or vice versa, establishing retail location/business office/restaurant/daycare, or converting a warehouse into an artist studio. The fees for these permits are, $25 - $100 for filing fees and $174 for the permit fee.

Adjust Property Lot Lines

The above is required if you are combining lots, trying to split a lot into multiple lots, or reconfiguring the property lines between adjoining lots. The fees for these are permit fees of $232 for less than 30,000 square feet or $580 for more than 30,000 square feet ( a $100 filing fee will be required for both and will go towards the permit fees).

Signs

The Department of Licenses and Inspections (L&I) issues these approvals and applies for number of signs, type, size, location, height, & illumination or lighting. Certain sign types don't need zoning approval and they are listed as the following; Window signs installed in up to two windows or doors (the sign can’t take up more than 20 percent of the transparent glazed area of a door or window), signs located in a building’s interior that are more than 18 in. from, or on more than a 45 degree angle to any window or opening (these signs are not intended to be visible from the outside), digital and video screens on outdoor equipment such as fuel pumps and ATM’s (limited to 1 sq. ft.), signs that give directions and are under 10 sq. ft. in area and under 7 ft. in height, and temporary real estate signs. If the proposed signs fit certain standards, you do not need to submit plans. Check if your sign complies with Philadelphia's EZ Sign Standard for Zoning . Accessory signs (located at the same place as the activity or business they advertise): $232 per sign & Non-accessory signs (advertising goods or services found at a different location): $365 per sign (with a $100 non refundable fee).

New Construction or Additions

Zoning approval is required to get a building permit. For smaller projects, such as additions to single-family homes, the Department of Licenses and Inspections can review zoning and building code requirements at the same time. For larger projects, such as new construction of apartments or mixed-use buildings, you should complete the zoning process before submitting your building permit application. The might also need to be reviewed by the City Planning Commission, Development Services, & The Philadelphia Water Department. The fees for these permits are, $25 - $100 for filing fees and varying permit fees.

Parking

You need a Zoning Permit to create new off-street parking. If parking is part of your development project, such as new construction or an addition, you may request it on the same zoning application. The fees for these permits are, $25 - $100 for filing fees and $174 for the permit fee.

Demolition

You need zoning approval to demolish an entire building or structure. Zoning approval is required to file for a Complete Demolition Permit. There is a $25 filing fee and a $58 permit fee.

What is Property Management

Wed, 29 Mar 2023 18:18:12 GMT

I get asked all the time on what is property management and what are the roles and responsibilities of property managers. While responsibilities and duties of property managers are certainly different from company to company, I am going to give everyone reading this an overview of what we do at ANCHOR so you have a benchmark and reference point. However, before you sign a contract with anyone make sure you are aware of all their policies, procedures, and contract terms.

Quick Overview

A property manager serves as the middleman between the landlord (property owner) and the tenant. While a property managers role may certainly vary, they usually handle most rental related tasks for your property, however they ae not allowed to preform any tasks without consent from the ownership. Typically the way the management companies make money in return is by collecting some type of management fee which can range from 2% to 15% depending on the level of difficulty with the property and what is being asked by the owner towards the company (our standard is 10% with an annual fee). The main departments within a management company may vary but at ANCHOR we have it split into the following, maintenance/turnovers, collections/legal, utilities (water, gas, and electric), licensing/city communications, leasing, and marketing/promotions (each individual department handles their own customer service as to give informed answers to those who are inquiring). While all the offered services are generally taken in some cases owners opt to do certain things themselves such as maintenance or leasing which should be ok but just confirm that before signing any contracts.

Owner Side

For example we here at ANCHOR handle all of the following for our owners;

Finding Tenants - Getting leads, showing the property, background checks, credit checks/history, income verification, and collecting move-in costs (this service is included but usually involves a fee given to the leasing agent in charge of the property, we charge 1 month of the rent which seems to be the standard across most companies)
Personalized Leases - Specific tenant responsibilities or any other special requirements you might have as a landlord
Collections - in-house team as well as caller agents who are in charge of making sure funds are coming in on time and correctly, they deal with government agencies that provide funding, and explaining charges and non-charges
Maintenance/Turnovers - Coordinate with our specialized list of vendors for any type of maintenance issue, field calls and emails from tenants, coordinate lock changes and alarm installs, coordinate with vendors to complete unit turnovers, and keep up on warranties/mandatory tests (the actual fees associated with the work that has been completed is either paid by the tenant or owner - depending on where responsibilities lie)
Legal - have readily available access to a lawyer or have their firm on retainer for advice, issues, and court hearings
Licensing & Utilities - Keep in contact with the city, local municipality, government entity, or local utility company to make sure the licenses on the property are active and up-to-date as well as utilities being paid off and operational.
Marketing/promotions - Marketing the properties as well as offering promotions such as referral programs and other great deals throughout the year

Tenant Side

For example we here at ANCHOR handle all of the following for our tenants;

Showing Properties - Each property should have a real estate agent assigned to it that is in charge of showing you the property and answering any questions you might have regarding the property or your own qualifications to rent it.
Certified Leases - While the leases are not always to someone's liking its important to know that the lease is transparent and has no hidden clauses. Even if you go through a management company it is still important to make sure you are going through the entire lease as to not be surprised by any information later on.
Payments - having great software apps (we use AppFolio) for easily paying rent, submitting work requests, and viewing documents is essential in this day and age, however, also offering in person or mail services is usually a good standard practice
Maintenance/Turnovers - Its important to offer a team that is able to coordinate between the owner, tenant, and vendor, as well as, insuring quality control throughout the entire process.
Utilities - Providing updates regarding utilities such as when to pay a water bill or if someone needs to be sent out for an unusually high water bill or other utility issue.
Government Programs - Dealing with these programs to insure that you are getting the help you need from them as well as they are getting everything they need from you.

So why should I choose ANCHOR?

We here at ANCHOR are a premier property management company who have been in the f ield for over 15 years. We not only have the experience and knowledge to provide you unbeatable service, but we also have seen property management advance over these past years with all the rules and regulations that have come with it. We are always staying up-to-date with the latest news and trends as well as developing strong relationships with government organizations and trusted contractors. To see if working with ANCHOR is the best fit for you please contact us through our website or directly to info@anchorrealtypa.com!

How to Deal With Squatters in Pennsylvania & Maryland

Mon, 27 Feb 2023 21:13:49 GMT

Squatters can be a problem for any homeowner and while we wish that no one ever has to deal with squatters it's still important to know their rights, your rights, and the right ways to deal with the process of getting them out. Below we will outline how to do this specifically in Pennsylvania and Maryland.

What is Squatting & What are Squatters?

Squatting is the action of occupying an unoccupied area or building that the individual does not own or have any legal permission to occupy. Therefore, a squatter is a person who unlawfully occupies an uninhabited building or unused land. A squatter can almost be any individual that fits the above criteria, however, depending on who they are and their circumstances they could have rights that allow them to stay at the property.

Definitions

Adverse possession - a doctrine under which a person in possession of land owned by someone else may acquire valid title to it, so long as certain requirements are met, and the adverse possessor is in possession for a sufficient period of time, as defined by a statute of limitations.

Color of Title - refers to irregular ownership of a property and the absence of one or more legal documents from the claimant. Color of Title does not affect how long a person has had continuous possession; however, it can help a person prevail in court against an opposing claim.

Wrongful Detainer - the action used to evict houseguests, family members, friends, and/or squatters that refuse to leave a property after being asked.

Ejectment - name of a process issued by a party claiming land or other real estate, against one who is alleged to be unlawfully in possession of it.

How to Prevent Squatters

The best way to avoid directly dealing with squatters at your property is by taking active measures to ensure that they are unable to occupy it in the first place. The following is a list of some of the things you can do as an owner:

Visit the property on a regular basis
Install a security system as soon as your property becomes vacant
Put up "No Trespassing" or "Private Property" signs around the property
Make sure windows and doors have secure locks
Serve a written notice to the squatter as soon as you are notified by their presence
Offer them to sign a rental agreement to avoid having to go through an ejectment or wrongful detainer

Squatters Rights in Pennsylvania & Maryland

Continuous Occupation - A squatter must stay for a certain continuous duration of time to be eligible to file an adverse possession claim. In Pennsylvania, a squatter will need to have occupied the property for at least 21 years (20 years in Maryland) to file a claim. This entire period must also be uninterrupted. The squatter must not have abandoned the property during those 21 years. Even leaving for a week can render their adverse possession claim null and void.
Actual Possession - The squatter must have a physical presence on the property. In addition, they must also treat the property as if they were the actual owner. The squatter can establish actual possession by documenting certain efforts including performing regular maintenance, cleaning up the property, and making beautification efforts.
Open & Notorious - The squatter must also make their occupation obvious to anyone including neighbors and even the actual property owner. If a squatter tries to hide their occupation of the property, their adverse possession claim would fail.
Exclusive Possession - The squatter seeking to own the property through adverse means must also prove ‘exclusive possession’. Exclusive possession means that they must be the only occupants of the property.
Hostile Claim - Simple Occupation – This defines ‘hostile’ as mere property occupation. The squatter occupying the property may or may not know who the land belongs to. Awareness of Trespassing – According to this definition, the squatter is assumed to know that their actions amount to trespassing. In other words, they must know that they don’t have a legal right to occupy the property. Good Faith Mistake – Only a handful of states follow this definition. Here, the trespasser is assumed to have made a good faith mistake by occupying the property. The deed in their possession may in this case be invalid or incorrect without them knowing it.

How to Remove Squatters in Pennsylvania & Maryland

In Pennsylvania the process of getting out squatters is called an ejectment while in Maryland it is called wrongful detainer . Even though the names are different the process is essentially the same for both states. In total it takes around $3,500 to file this claim but the whole process can cost anywhere from $3,000 - $10,000 (depending on the costs of the following requirements. A hearing would only occur if the squatters contest the claim that you file. They would need to be able to show proof of everything outlined in the "Squatters Rights" section to be able to present a decent case. Once everything goes through and the lockout is scheduled there needs to be a representative at the property (owner or someone on behalf of the owner), Sherriff, locksmith, as well as a moving company or other party that is able to move all of the squatters items into a storage unit. The storage unit must be bought for 30 days after the day of the lockout from which the squatters need to schedule a time to pick their stuff up from it. Once the 30 days have passed you are allowed to discard of their things.

Final Notes

While the above certainly gives you a good outline on what squatters are, what their rights are, and the process of removing them from your property, make sure to seek advice before dealing with a squatting situation on your own. Sometimes there is more to a situation than you can see on the surface so it is important to seek legal advice and/or professional help when dealing with a squatting situation. Moreover, having a property management company such as ANCHOR Realty can be a huge help in terms of preventing a squatting situation or remedying it if it occurs due to our specialized teams and past experiences. Contact ANCHOR today to get help with your situation or to see if we are the right property manager for you!

Citations

Bitton, D. (2023, February 13). Maryland squatter's Rights & Adverse Possession Laws. Property Management Blog by DoorLoop. Retrieved February 27, 2023, from https://www.doorloop.com/laws/maryland-squatters-rights#:~:text=A%20squatter%20must%20inhabit%20your,legal%20ownership%20of%20the%20area.

DeSantis, C. (2022, February 21). Squatter's rights Pennsylvania - A Guide to PA Adverse Possession Laws. DeSantis Property Management in Pittsburgh. Retrieved February 27, 2023, from https://desantispropertymanagement.com/pennsylvania-squatters-rights/#:~:text=In%20Pennsylvania%2C%20a%20squatter%20will,possession%20claim%20null%20and%20void.

Evictions , M. (2022, September 6). Wrongful detainer. MEO Services. Retrieved February 27, 2023, from https://marylandevictionsonline.com/wrongful-detainer/

University , C. (2022, June). Adverse possession. Legal Information Institute. Retrieved February 27, 2023, from https://www.law.cornell.edu/wex/adverse_possession

Wood, S. (2022, November 2). Do squatters' rights still exist? Able Investigations. Retrieved February 27, 2023, from https://ableinvestigations.com/do-squatters-rights-still-exist/

2023 Rental Market Trends

Tue, 31 Jan 2023 16:04:52 GMT

4 Things to Watch in Rental Market Trends for 2023

Like many aspects of the U.S. economy, the rental market has seen unprecedented growth. The housing market, in general, has been especially strong, with homeownership costs soaring over the past year. This has caused prices to skyrocket across all aspects of the rental market. And although a slight decline in median rent was seen earlier this autumn, rental prices expect to remain strong throughout 2023.

Here are some other rental market trends both property managers and potential tenants should keep in mind for the coming year:

Record Inflation and a Continued Surge in Costs

As previously mentioned, rental prices have grown in markets across the country. This rental market trend is partly due to the record inflation the nation is experiencing. The costs of utilities, food, transportation, healthcare, housing, and more have all experienced double-digit inflationary pressures putting pressure on the American economy. Yet, even with this explosion in growth, the markets continue to flourish, leading to increased demand and even higher prices.

This rental market trend is expected to continue throughout 2023, with some analysts predicting a nearly 4% rise in price growth by mid-2023. Additionally, interest rates for those interested in purchasing a home and obtaining a mortgage will continue to rise, pushing more consumers into the rental market.

The Resurgence of Mixed-Use Rental Properties

Prior to the pandemic, mixed-use rental properties saw a rise in demand. Areas where renters shared space with entertainment venues, retail environments, and restaurants became increasingly popular as a rental market trend. Yet, as construction slowed during the height of the pandemic, the construction industry moved back to more traditional rental buildings.

Now, as the housing market continues unprecedented expansion, mixed-use developments have gained momentum with builders. Malls across the country have made a shift to now offering residential properties alongside retail and dining spaces. Even on a smaller scale, these types of properties have grown increasingly attractive to potential renters. Expect mixed-use properties to gain momentum throughout 2023 and into 2024.

Age Diversity in the Rental Market

Another trend being seen is that renters of all ages are eagerly entering the market. Both millennials and baby boomers are flooding the rental market looking for living spaces. This, in turn, has driven property owners to offer a range of features for their units. These can include ramps and ease-of-access accommodations to older residents, as well as cutting-edge digital communications to appeal to younger generations.

Single-Family Residences Still Reign Supreme

Single-family residences continue to be extremely popular with renters. Consumers interested in family-friendly environments, access to both indoor and outdoor areas, and convenient living spaces continue to drive single-family homes as a leading rental market trend. Single-family rentals are a great option for families, yet they also expose renters to potential problems if an economic downturn occurs. The increased cost of living in a single-family home leave renters particularly vulnerable to inflation.

ANCHOR Realty NE is one of the leading property management companies in Philadelphia . We offer a range of services, from property management to real estate investment. If you’re interested in learning more about one of the best apartment realtors in Philadelphia and Baltimore, contact our team today!

Marketing Your Rental Properties

Mon, 21 Nov 2022 15:23:23 GMT

What You Need to Know About Marketing Your Rental Properties

Now that you have made significant real estate investments in your portfolio, you want to start getting people into them to start making a profit. You’ve renovated the space, added amenities, and created a space people should want to move into. However, finding qualified tenants to fill your vacancies can prove more challenging than you anticipated.

If you’ve been inundated with applications from unqualified applicants, it can waste valuable time getting people into your rentals. To get the right people into your properties, you may need to rethink how you advertise and market your space’s availability. Here’s what you need to know about marketing your rental properties more effectively.

Rethink Your Rental Listing

The first step towards bringing in more qualified leads is rethinking how you present your properties to potential renters. If your listing doesn’t put its best foot forward, the higher-end renters you’re targeting might pass it by, and you’ll be left with people that may not be able to meet your expectations.

Highlight your property’s best features and take advantage of engaging images and videos to pique people’s interest. Making your listings more dynamic will hold potential renters’ attention and give them more reasons to stick around and explore your listing.

Set the Right Price

On the home rental market, finding the right price for you and your potential renters is vital to your long-term success. Conducting thorough market research of your immediate area and comparable properties will help make this part of the process go more smoothly. Does your neighborhood’s typical rental prices skew high? What kind of amenities do they offer? Knowing this can help you set a competitive price that doesn’t scare off potential leads.

Choose Your Platform Carefully

Choosing where to list your rental property plays as big of a role as the content of the listing itself. In most cases, different real estate apps and platforms have specific demographics that they serve and are popular with.

If you are in an area that tends to target upper-middle-class residents, choosing a platform that has more single young professionals still making a name in their career may not give you candidates who can meet your rental prices, and your listing sits there for months on end, not gaining any traction.

Know Your Peak Rental Season

Like most industries, the rental market has its own peak seasons when more people are looking for a new home to rent. Typically, the spring and the summer see more people on the hunt for a new home, but these factors can vary based on your location. Know when your particular area tends to see spikes in demand and new tenants, and plan your listing strategy around capitalizing on these opportunities.

Leverage Social Media to Your Advantage

It’s not just the rental platforms that can help jumpstart your search for qualified tenants — social media can help increase your reach. With the right mix of community groups and established networks, you can get your listings in front of more eyes than you would otherwise. Using platforms like Facebook, YouTube, Instagram, and Twitter to promote your properties, virtual tours, and even unique platform specific listings can help improve your prospects dramatically.

Turn to ANCHOR Realty NE for Your Rental Marketing Needs

ANCHOR Realty NE has helped countless property owners market their properties with our rental property management services in Philadelphia, PA . We work with our clients to present their properties in uniquely dynamic ways, drawing the interest of qualified renters and filling your vacancies quickly. Learn more about our marketing services and how we can help better position your rental property for the future!

Meta Description:

Has your rental property been sitting unoccupied for long stretches? It could be how you’re marketing it. Learn how to give your listing a boost now!

What Is a Good Cap Rate for Multi Family Properties?

michael@anchorrealtypa.com (Michael Dvorkin) — Wed, 31 Aug 2022 15:22:14 GMT

Before you jump into purchasing a multi-family home, understanding metrics like cap rates can help identify how much of the investment will come back to you. The higher the rate, the better it is for investors, but what exactly does a good cap rate mean? Read on to learn about how valuable cap rates are for your next real estate venture and how it affects the other factors that go into a multi-family property.

What Is a Cap Rate?

Cap rate (capitalization rate) is your return on investment, assuming the property was purchased in cash. It shows how long your investment will take to reward you and, of course, when to expect to earn a profit. Cap rates are calculated using this formula:

Cap Rate= (Income - Expenses) / Purchase Price

A higher cap rate means you can expect your return on investment sooner, while a smaller cap rate calculation means your multi-family investment might take longer to reward you.

Why Is a Cap Rate Important?

So what exactly is the value of a higher cap rate? Cap rates help you make better investment decisions by narrowing down the property's value. The lower your cap rate, the lower your risk, but you will likely receive lesser returns. A higher cap rate may mean a riskier investment (dangerous area, old property), but they offer higher rewards that might be worthwhile for a well-diversified portfolio. Understanding cap rates can help investors to:

Identify Risk Level
Analyze and Compare the Value of Investments
Calculate ROI of Properties

These three metrics are extremely valuable when diving into an investment, and property managers like ANCHOR Realty NE push investors to understand the importance of a good cap rate.

What Is a Good Cap Rate for a Multi-family Home?

If you're looking to invest in a multi-family home, a good cap rate is around 4-10%. Multi-family homes usually have lower cap rates than most properties, where it's standard to find an 8-10% cap rate. This is a broad range, but additional factors can cause these numbers to fluctuate. In addition to the cap rate, you also want to pay attention to the asset's class, location, and property type.

Regarding asset class and age, the cap rate for multi-family homes is divided into four classes: A, B, C, and D.

Class A is for properties ten years or younger, B represents properties between 10 and 20 years, C is for properties 20 to 30, and D is for properties older than 30. Newer properties are less risky and, as such, have lower cap rates, while older properties are much riskier and have higher rates.

Real estate investors typically look to large markets for valuable properties. Tier 1 properties have an average cap rate of about 3.75-4.75% and are located in major cities like New York, Los Angeles, Seattle, San Diego, and San Francisco. Tier 2 properties have an average cap rate of 4-5.25% and are located in mid-major cities like Atlanta, Minneapolis, Philadelphia, Phoenix, and Portland. Tier 3 properties are between 5.25 and 7% and are in smaller markets like Kansas City, Oklahoma City, and Salt Lake City.

Invest Wisely With ANCHOR Realty NE

Cap rates are just one of the many metrics to consider when investing in your properties. It's important to consider the other factors and how they affect the risks of choosing your next investment. Determine your goals and the returns you're seeking for any potential acquisitions. The last thing you want to do is jump into a decision without a proper understanding of cap rates and the other influences on property value.

With ANCHOR Realty NE, you'll receive access to various resources and real estate investment advice to help guide you to the right choices. If you're on the lookout for a property manager in Baltimore & Philadelphia , reach out to us today and learn more about a good cap rate and the other metrics that play into a worthwhile investment.

How to Improve the NOI of Your Rental Property

michael@anchorrealtypa.com (Michael Dvorkin) — Tue, 28 Jun 2022 19:17:57 GMT

As a property owner, you have only so much control over your rental property’s long-term profitability. The property’s market appreciation may be almost entirely out of your control, but there are steps you can take to increase your cash flow. By focusing on improving your net operating income, you increase the investment value of your property and ensure you see financial growth. Here are five ways you can increase your rental property’s NOI.

Increase the Rent

One way to improve your NOI is to increase the rent to match market rates. This is often easier said than done, but with the right guidance from property managers in Baltimore or Philadelphia , you can easily determine if your rental fees align with the market rates. Real estate professionals will help you compare your property to other rental properties in your area, conduct a market survey, and analyze your vacancy. Based on this information, you will know if your rents are too low.

Renovate the Property

You can charge a rental premium on your property if it is well-maintained or provides upgraded features. Renters are drawn to places with the latest appliances and fixtures and are often willing to pay more for these amenities.

Consider remodeling the interior of your rental property to increase your NOI. Add new plumbing fixtures, lighting, or cabinet doors to make the rental feel more modern. Alternatively, you can boost the property’s curb appeal by repainting the exterior, sprucing up the landscaping, and adding more lighting. You will be amazed by how much of an impact these minor improvements can have on your rental income.

Implement a Stronger Screening Process

If you want to improve your rental’s NOI, you will need to avoid situations where rent goes uncollected. By screening potential tenants, you reduce the likelihood of experiencing evictions, unexpected move-outs, and property damage. It’s best to entrust the tenant screening process to a property management company to leave no stone unturned.

Save Water and Energy

Water and energy are some of the largest expenses rental property owners face. You can significantly impact your rental’s NOI by reducing water and energy consumption. Consider installing low-flow toilets, showerheads, and aerators as well as sensors on the irrigation system to save water. To save on electricity, install LED lighting fixtures and bulbs. You may also want to install light sensors and motion sensors to cut back on wasted energy.

Get Professional Guidance to Boost Your NOI

Increasing your property’s NOI can be challenging since it largely depends on the rental market and can be affected by things like tenant move-outs and property damage. While you may not be able to generate the income you were hoping for every year, you can keep the above ideas in mind as you strategize ways to improve your revenue streams and decrease operating expenses.

For more ways to improve your NOI, get in touch with ANCHOR Realty NE. Our experts will provide the real estate investment advice you need to maximize the value of your properties. Contact us today for all the best ways to boost your rental’s NOI. You can also check out our Philadelphia & Baltimore properties for rent to see what we can do for you.

Looking Ahead: Our 2022 Real Estate Predictions

Thu, 20 Jan 2022 19:16:01 GMT

Over the past two years, the real estate market has experienced several ups and downs. What is next for this market? As we embark on a new year, we at ANCHOR Realty, NE, wanted to offer you, our valued current and future clients, our outlook on the real estate market in the upcoming year.

Like most economists, we anticipate the Federal Reserve raising the Fed Funds rate, undoubtedly impacting interest rates and the real estate market in 2022. The following is our prediction of things to come in the 2022 rental housing market.

Interest Rates Will Rise

We expect that higher interest rates will drive up the desired rate of return on rental real estate. This will translate into either higher rents or lower prices — or a combination of both. We tend to favor the view that the more likely outcome is a drop in the price of rental properties, which will translate into a higher rate of return to investors.

Financing Costs Will Increase

We also believe that higher rates will result in higher financing costs and will be yet another factor in a slowdown in demand for investment real estate, again resulting in a drop in prices. With time, the rental housing market will become more profitable for investors, especially when homebuyers are faced with skyrocketing mortgage rates and search for alternatives.

Rent Will Stagnate

As the rental housing market continues to recover from the pandemic, we anticipate that rents will stagnate or experience a severe slowdown with inflation pressures. As a result, valuations of investment properties will also remain the same or decline.

Be Patient – A Brighter Real Estate Market Is Coming

Given the above, our advice to clients is to be patient and give the real estate market time to adjust in this post-pandemic world, including adapting to rate increases as well as increases in the rate of inflation. Even though we feel that investors will be able to receive high yields on their rental properties in 2022, we believe that, unless you find a great deal, the best move is to wait until the summer before considering any new real estate purchases. Patience is key in this volatile market.

We wish you and yours a happy and prosperous new year! As always, don’t hesitate to contact us to further discuss your real estate investment goals or to inquire about our property management services .

Do I Need Landlord Insurance? | Anchor Realty NE

michael@anchorrealtypa.com (Michael Dvorkin) — Wed, 22 Dec 2021 18:54:14 GMT

If you rent property, it's important to safeguard your personal finances against losses related to your rental. ANCHOR Realty NE is a property management company based in Philadelphia, PA, that can help you do this. We commonly advise property owners on legal and financial matters impacting their rental properties. This article focuses on when you need landlord insurance to cover your rented condo, house, or apartment.

It's important to note that landlord insurance in Baltimore, MD or Philadelphia, PA, doesn't cover the personal items of the renter. This is why all of our leases require tenants to purchase renters insurance to cover their belongings and liability.

What Is Landlord Insurance?

Landlords insurance provides coverage for a home you rent out on a regular basis. This insurance coverage pays risks specific to operating a rental property. It protects the property against various risks listed in the policy, typically including a loss of rent. You have several options when it comes to adding endorsements to expand your basic coverage for landlord insurance in Baltimore, MD or Philadelphia, PA.

Examples of landlord insurance include:

Coverage for property insured, including additional structures damaged due to a covered loss.
Coverage for personal property used for maintenance and kept on site
Protection against lost rent income
Landlord liability coverage

Does Homeowners Insurance Handle Home Rentals?

Unfortunately, your homeowner's insurance only covers your home if you use it as a primary residence. It doesn't cover events that occur as a result of renting out your property.

You can ask your insurance company if they're willing to add your rental as another location on your policy. If they agree, you can save money because standalone landlord insurance may cost more money than bundling your coverage with your home insurance policy.

It may be worthwhile to find an agent and shop around for the best options available to you.

What Does Landlord Insurance Cover?

A comprehensive landlord insurance policy typically includes the following:

Property damage: This coverage provides peace of mind that your property is covered in case of a natural disaster, electric or gas malfunction, fire, and vandalism. Policies that offer replacement costs are more robust than those offering to reimburse you for the actual cash value of furnishings, fixtures, and other covered items.
Lost rental income: This insurance reimburses you if something occurs to make the home uninhabitable. This could include termites, mold, a sinkhole, rat infestation, or another covered event. Typically, you'll receive reimbursement for lost rental income.
Liability protection: This insurance protects you against legal or medical costs associated with a personal injury suffered by tenants or visitors. Covered incidents include events listed in the policy, such as a beehive or icy walkway.

When you find an insurance agent you can trust, you can also ask them about additional coverage options available with various insurance companies.

Additional Types of Coverage

Riders that expand your landlord insurance policy cost a bit more but may end up saving you money when compared to paying for a covered loss.

Common additional coverage may include the following:

Guaranteed income insurance: This coverage makes up the difference if your tenant doesn't pay all or part of the rent.
Flood insurance: Many landlords don't include flood damage in their insurance. However, you should add it if you own property in a designated flood zone.
Emergency coverage: This coverage pays for your travel expenses if you have to respond to an emergency such as a leaking dishwasher or tenant lockout.
Additional construction expenses: If you have to pay to bring your damaged building up to code, this coverage reimburses you for related construction expenses.

Insurance costs and coverage options vary by state and the insurance provider. So, always ask for landlord insurance quotes to help you narrow down your selection. For more information about landlord insurance, tenant screening , or property management in Philadelphia, PA or Baltimore, MD, get in touch with our team today.

Advantages of Using a Property Management Company

Tue, 09 Nov 2021 15:47:06 GMT

At ANCHOR Realty NE, our property management company can help owners deal with maintenance requests, tenant complaints, as well as rent collection for rental properties and more.

From tenant acquisition and screening to monthly accounting of revenues and expenses, our property management company located in Philadelphia, PA, offers concierge service to owners and keeps tenants happy. Below, we list the main advantages of hiring a property manager.

Find High-Quality Tenants

Experienced property management companies become adept at finding good tenants who are seldom late on rent payments. As a leading property manager in Philadelphia, PA & Baltimore, MD, we have years of experience with tenant acquisition and rent collection, as well as the best way to market our clients’ properties. We understand that high-quality tenants expect great service from a responsive landlord. Additionally, we keep in mind the interests of owners who want to attract long-term renters who pay rent on time.

The tenant screening process involves more than checking criminal backgrounds and financial history. Without sufficient experience dealing with leasing applicants, a property owner could easily end up with bad tenants, making the property difficult to manage. With the recent delays in the eviction process, poor tenants can be hard to get rid of.

Create a Single Point of Contact

Hiring a property manager gives property owners a single point of contact for vendors, tenants, and other partners. With someone else handling their rental property, there are fewer commitments to consider. We all know there are periods of time when managing a property can become a real headache; for owners, having someone manage their property is a huge benefit because it allows them to concentrate on other responsibilities.

Save Money on Maintenance and Repairs

Isn't it time to enjoy the benefits of hiring someone else to handle building maintenance? ANCHOR Realty NE utilizes trusted service providers gained throughout the years to keep up with required repairs. Where applicable, we use licensed professionals to make sure that the job is done right the first time.

Increase Rental Property Value

Identifying any structural or system issues and responding quickly to tenant requests helps us maintain the building properly. Our experienced property managers also conduct preventative maintenance as a way to safeguard against expensive repairs and improve property value.

Maintenance checks, inspections, and detailed documentation are the hallmarks of an exceptional property manager. Additionally, it's important to invest in upgrades on individual units to attract new renters and collect premium rents.

Provide Reporting and Financial Oversight

The advantages of hiring a property management company include instant access to technology. Tenant and owner portals make it easy to collect rent and provide real-time reporting to property owners.

As part of our commitment to cash flow, ANCHOR Realty NE establishes escrow accounts for apartment security deposits. We also handle third-party disbursements for tax, mortgage, utility payments, and routine repairs.

We provide online access to all owner and tenant accounts and use direct deposit to get money into bank accounts faster. Our property managers also provide online access to 1099 statements and annual reports, which are needed for tax purposes.

Contact Our Property Management Company

We would love to help any property owners hand over these time-consuming tasks to professionals and maximize the revenue for their properties. For more information about the benefits of hiring a trusted property management company in Philadelphia, PA & Baltimore, MD — or to buy or sell a property — reach out to our team today!

Tenant Screening: Protecting You and Your Rental Property

Fri, 24 Sep 2021 22:18:29 GMT

Managing your rental property correctly and practicing thorough tenant screening can protect you from facing many problems with your tenants and being forced into pursuing costly evictions. With the help of ANCHOR Realty NE, you get the quality services and advice you need to operate your rental units in Philadelphia, PA, Baltimore, MD, and the surrounding areas with confidence and ease.

How Does the Tenant Screening Process Work?

All rental applicants should be required to go through a thorough screening process as part of the tenant application. This allows you to identify potential issues before they can turn into costly mistakes. The vetting process can take a while, but tenant screening companies can alleviate the burden of time placed on busy landlords who need to direct their attention to other matters.

Tenant background checks should include much more than just verifying their identity. Tenant screening services encompass three main areas: a full credit report, previous eviction records, and criminal records.

By reviewing a tenant's credit scores and eviction history, the tenant screening report can calculate the likelihood that the prospective renter will be a risk. Those that have had previous eviction reports may need to offer additional information or prove their ability to pay rent by verifying their income.

Obtaining a credit history from a reporting agency gives insight into the individual's payment history and other factors that can determine if they are a good fit for the rental property in question.

What Are Tenant Screening Laws?

Fair rental practices in Baltimore, MD & Philadelphia, PA, demand that there are common rules set in place to regulate the rental process, keep the property in a safe condition for tenants, and monitor any pursued eviction. It's essential to stay compliant to avoid fines and potential legal action.

Prospective tenants have the right to be treated fairly, and landlords should be aware of all laws and regulations that they need to follow to avoid unintentional discrimination. Where tenant background checks go a long way toward safeguarding landlords against a potential problem tenant, the Fair Housing Act (FHA) protects a tenant from being discriminated against based upon:

Race
Color
Gender
Religion
Ethnicity
Familial status
Disability

Not all properties adhere to the FHA regulations, but other local and federal laws may apply. Ignorance on either the tenant or landlord is no excuse for not following proper procedures, so all parties must be fully aware of the applicable guidelines in their location.

Advantages of Working with ANCHOR Realty NE

ANCHOR Realty NE is one of the top companies in Baltimore, MD & Philadelphia, PA, for managing your real estate interests. We can help our clients solve tough issues that other managers can't. The tenant screening process is just the first step.

We offer an entire range of useful services for both tenants and landlords. One of the most alluring is online account access. Tenant pay options for both rent and utilities, as well as a hotline to report emergencies or maintenance issues 24/7, are just two examples. Important updates are easily sent to each tenant's email address or posted on their account to keep everyone informed and keep communication lines open.

As a landlord, you will also benefit greatly from receiving expert assistance with each stage of managing your property, from finding the right tenants and tracking lease status to collecting rent and resolving troublesome issues. ANCHOR Realty NE located in Philadelphia, PA, can make managing multiple properties a breeze by saving you time and providing accurate results from all tenant screenings, so you can make a fully informed decision quickly.

For more information about all of our services , including tenant screening, contact us today.