so how do you keep good tenants longer treat your tenants like they actually your clients and consider offering so you can definitely tell that the feeling in general is doing a little bit worse than at 19152 we're seeing higher rents and they're closing at higher amounts and much faster so for 19114 a total of 24 units were listed with a median listed price of We're here to share insights and experiences, not legal or accounting advice. Be sure to talk to your attorney, accountant or professional advisor before making any decisions. Everyone's situation is different, get the help that is right for you. Hi, everyone, and welcome back to the Phila Landlord Guy. I'm your host, Yuriy Skripnichenko, the guy with impossible last name. Just think of me as Landlord, Phila Landlord Guy. I'm a licensed real estate broker and certified property manager here in Philadelphia. Today, we're diving into a topic that hits every landlord right in the wallet, the current market snapshot for July 2025. We're going to talk about the growing squeeze on landlords' profits, what today's Phila renters actually want and some smart, no-nonsense strategies to maintain profitability and attract quality tenants in your properties. We'll also dive into a couple specific Northeast Philly zip codes 19114 and 19152. So let's jump right in. First up, let's talk about the squeeze. If you are a landlord in Philadelphia, you are feeling it. Your operating costs are on the rise. One of the biggest culpits lately is property taxes. We've seen various discussions and reassessments in Philly and often that means higher bills for the property owners. When your property tax climb it directly impacts your bottom line you need to be factoring this into your rent analysis and your overall budget don't just assume that the last year numbers will hold true this year then there is insurance cost it's a national trend right now but it hits here in philly heart especially with our older housing stock premiums are not getting cheaper what you can do about it Shop smart. Don't just auto renew without getting competitive quotes. Do not renew for six months policies. Always select one year policy. Look into what your policy actually covers and what it doesn't. Sometimes a slightly higher deductible can save you a lot of money over a year, but make sure it aligns with your risk tolerance. And let's not forget maintenance and repairs. Inflation is not just affecting our groceries, it's impacting the cost of maintenance and material and labor for every repair you make. That lucky faucet, the HVAC tune-up, and your appliance, it all cost more than it was a year or two ago. So how do you mitigate this rising cost without letting your properties fall apart? Well, regular preventative maintenance is key. Catching small issues before they become big and expensive problems is crucial. Also, building relationship with reliable contractors, which I know is not easy in Philadelphia or anywhere for that matter, but that is a lifesaver and make sure that you always have contractors that you can trust and use if something is going to happen in your property or when something is going to happen at your property. And finally, while not always directly paid by the landlord, you increases can also play a role. If you're a landlord in a multifamily building, you may pay gas for everyone or you are paying water for everyone, but also higher utility bills are impacting your tenant's ability to pay rent. If you have everything is electric in the property and we have colder winters and it takes a lot of electricity to warm up, tenants might not be able to afford the rent. So you need to factor those things in and those rising costs, they actually cut in to your profits and you need to make sure that you are adjusting for that. So now let's zoom on a couple of specific Northeast Philly zip codes that many of you either invest in or considering buying in. We're talking today about 19114 and 19152. Let's start with 19114. The zip codes includes a few different neighborhoods. And according to recent census data, the median household income in 19114 is around 76$6,000, which is significantly higher than the median household income in Philadelphia as a whole, which is about$60,000. This tells you a bit about the tenant profile you may find here. As for the housing types, the zip code is characterized by a mix of single family row homes and detached or semi-detached homes. You also will find a good number of smaller apartment complexes and townhomes offering various options for renters. Next, we have 19152. This area covers a few different neighborhoods as well. The median household income in 19152 is approximately$57,000, almost$58,000. This is slightly below the city's median, but it still represents a solid working-class demographic. Housing in 19152 is predominantly single-family row homes, similar to much of greater northwest Philly, along with a decent percentage of duplexes. complexes and some smaller apartment buildings. It's a very stable area with strong sense of community. So now let's talk about the rental market data for the specific zip codes from April through June. We don't have the July data yet. It usually comes up sometimes in the beginning of the next month in August. So in our August solo episode, we will be talking about July, but for now we have data up to June. If you're a landlord and need help staying compliant or navigating this market shift, remember our sponsor, Trust Art Realty. They are offering all of our listeners a free rental analysis or management advice session. To claim your free consultation, send an email to trustartrealty at phililandlordguy.com or click the link in the show notes to fill out a quick form and somebody will get in touch with you. So for 19114, a total of 24 units were listed with a median listed price of$1838 and the median And closed price was$16.50 with average days on the market$36, which tells us that in this neighborhood or in this zip code, you still see that the rents going down before they close. For 19152, we had 25 units listed with a median listed price of$19.50 and the closed price$21.90 with the average days on the market$19. So this is Interesting and a little bit counterintuitive. For 19154 zip code with a much higher median income, the rents are actually lower and they're still dropping for the closing and it takes longer to rent them out. But do not forget that we have more apartment buildings in this zip code and that factors into the pricing. So the price as a median price or average price may be lower due to that. And the days on the market can be higher due to that as well. Where at 191.52, we're seeing higher rents and they're closing at higher amounts and much faster, even though the medium income in the area is lower than the median for the whole city. That is an interesting trend, but you can see that both of these areas are still very stable. Northeast Philly zip codes with good tenant basis, and both of them are renting pretty fast, which definitely helps you. So for the entire city of Philadelphia in June, the median listed price was$1850, and the median closed price was also$1850, with an average days on the market$47. So you can definitely tell that the feeling in general is doing a little bit worse. than Northeast zip codes, but still 47 days is better than what we were seeing in the previous months. At the same time, we are in the hottest rental season right now, and 47 days, it's a significant number of days on the market for this time of the year. Quick update, our Jumpstart Northeast Philly program is live and we're accepting applications now. If you are in Northeast Philly and you're looking to learn how to find, buy, finance, fix, rehab cell. or rent a property in Philadelphia, this program is built for you. It is based on proven success of Jumpstart Germantown program and focused on building local wealth while improving our own neighborhoods. You also will hear from multiple industry experts such as lenders, contractors, zoning experts, and more sharing real practical knowledge to help you succeed. Don't wait. Space is limited. The first program is running in September. The application process is open to apply. Click the the link in the show notes, or go to trustartrealty.com, select resources, jumpstart Northwest. So beyond the specific zip codes, let's look at the broader market picture. According to the recent BiggerPockets insights, the national housing market is definitely shifting. Thousands of homes are sitting unsold and inventory is up nearly 30% year over year. And pending sales are slipping, but at the same time, we're still seeing as on a national level, we're still seeing the median list price hitting, going up. And at the same time, we're seeing more price cuts than in any June in years before. about 20% of listings getting price cut. What's interesting for us in Philadelphia is the regional breakdown. Sunbelt markets are seeing a flood of listings while the Midwest and Northeast, where we are, remain tighter. Another BiggerPockets report highlights that after a huge run of high prices and bidding wars, things are finally shifting and price growth has slowed to just 1.4% annually which is below inflation meaning that disciplined investors can now actually buy at a relative discount all of this data supports that we're seeing the market is normalizing renters are savior and they have more options it is no longer just about providing a basic roof over their heads tenants are prioritizing certain amenities, we're seeing a strong demand for things like unit laundry, central air conditioning, updated kitchens and bathrooms, decent appliances. If your property still has the same kitchen from the 70s or the 80s, you're going to struggle to compete with newer units, even if they are in less desirable areas. These are the upgrades that make a big difference in attracting and retaining quality tenants. But also when you're thinking about upgrade, don't think just about the cosmetics appeal of it. Make sure that all the mechanicals are there because if you just make cosmetics and you have old plumbing or old electric, it will break down and it will damage all of your cosmetic appeal. So this brings us to the price and pressure. With more and more new construction hitting the market, especially in areas like Center City, Northern Liberties and Fishtown, there is more inventory available. This This means that the rent growth may be flattering or you may even need to adjust your pricing downwards to avoid loan vacancies. Overpricing your unit, even by a little, can lead to weeks or months of vacancy, which is far more costly than a slightly lower rent. So how do you keep good tenants longer? Tenant turnover is a killer for your bottom line. The cost of cleaning, minor repairs, or bigger repairs, advertising, and lost rent during vacancy adds up fast. Focus on retention strategies. Be responsive to maintenance requests. Treat your tenants like they're actually your clients and consider offering small incentives for lease renewals. A happy long-term tenant is your most valuable asset in this game. Now for the actionable strategies. What can you as the Philly landlord do in this environment? First, smart renovations. Don't just throw money at the property. Focus on upgrades that provide the best ROI. In older Philly, housing stock, cosmetic updates, fresh paint, modern light fixtures, updated kitchens and bathrooms often yield the most bang for your buck. Especially energy efficiency upgrades like Better Window or HVAC systems can also attract tenants by lowering their utility bills. Remember, you don't need a gut rehab to stay competitive. Second, conservative budgeting and robust services. With rising property taxes, insurance, and maintenance costs, your profit margin margins shrink quickly. Ensure your financial models account for all of these increases. And perhaps most importantly, build your cash reserves. This isn't optional. You have to have cash reserve in case if you have longer vacancy or if your renter is going underwater and you need to cover all the expenses on the property. So finally, effective marketing screening. In a more competitive market, your marketing needs to be top notch. High quality photos, detailed description and clear communication are essential. And when it comes to screening, do not lower your standards. Finding a good tenant starts with a good thorough process. Make sure that you utilizing comprehensive background checks and credit pools and income confirmation and everything that you do to make sure that you get a good tenant in place. All right, that wraps up today's solo update. We covered the increase in operating costs impacting Philly landlords, the evolving demands of today's tenants, and actionable strategies for smart renovation, robust budgeting, and effective marketing. We also took a closer look at the demographics and housing in 19114 and 19152 zip codes alongside with the latest national market trends that affects us locally. Staying on top of these changes isn't optional, is critical to protecting your investment and planning for the future. If you find this podcast helpful, please take a second to follow, rate, and review the Philly Landlord Guide whenever you listen. It really helps us grow and reach more Philly Landlord guys and girls like you. Don't forget to follow us on all social media at Philly Landlord Guy. Next time I'll be back with another guest. You won't want to miss it. Thanks for tuning in. I'll catch you up in the next episode.