5 Extra Steps When Purchasing an Investment Property in Philadelphia
This post was inspired by a recent Trulia question we answered .
The "extra" steps needed to buy an investment property in Philadelphia for the purpose of renting are all about the professionals you surround yourself with and anticipating the future.
1) Determine if you want your property under a corporate name or your personal name. Your accountant or lawyer can possibly advise you on the benefits of each.
2) Make sure your home owners insurance policy covers your needs as a landlord. The homeowner policy you purchase should take into consideration vacancy coverage in addition to the typical fire and flood. Consult a professional and ask about their policy on making claims due to negligence of a tenant, neighboring homes, and any scenario you can think of. Fact: Stuff happens!
3) You should get a rental license and familiarize yourself with the process at City Hall. The fee is minimal but knowing the right time to visit the licensing office can save you a lot of time. The lines can be long.
4) Make sure you register for PGW's Landlord Cooperation Program. In Philadelphia, unpaid gas bills follow the property so if you tenant does not pay, you may be stuck with the bill. PGW has a program for you at PGWworks .com.
5) Prepare for large ticket items such as HVAC systems, the roof, windows, and sewage systems. Do not forget about Home Warranties. Those appliances that are not new will require service.
If I give it more thought I am sure a I can come up with 10 extra steps you need to consider. Perhaps interested and informed investors can chime in and add a few tips to my list.
Regards - Stephanie Somers
For more information on Philadedlphia investment properties, visit Philly Investor Hub !
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The Somers - Philadelphia Real Estate
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