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July 29, 2025 15 mins

Operating costs are rising fast — from property taxes and insurance to maintenance and utilities — and they’re squeezing profit margins. In this episode, I explain how to adjust your rent analysis, control costs, and protect your cash flow without sacrificing property quality.

I also dive into updated rental market data for two Northeast Philly zip codes:

19114: Median listed rent $1,838 → closed at $1,650, avg. 36 days on market

19152: Listed at $1,950 → closed at $2,190, avg. just 19 days on market

We compare these figures to citywide trends and discuss why some units rent faster — even in lower-income areas — and what that means for your pricing strategy.

Plus, I share actionable strategies to stay competitive in a market that’s normalizing: smart renovations, budgeting, marketing, and tenant screening.

 If you’re a landlord looking to stay profitable and attract quality tenants, this episode is packed with the tools you need.

This episode is brought to you by TrustArt Realty, your full-service property management partner in Philadelphia. Whether you’re just getting started or scaling your portfolio, TrustArt helps you stay compliant, efficient, and profitable.

 Apply for our Jumpstart Northeast Philly Program — built to help new developers learn how to find, finance, fix, rent, or flip property in our neighborhoods. Apply here: https://trustartrealty.com/jumpstart-ne-philly  

Get a FREE Property Management Evaluation: Click here to fill out the form  info@trustartrealty.com  

267-929-1500

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Transcript

Episode Transcript

Available transcripts are automatically generated. Complete accuracy is not guaranteed.
SPEAKER_00 (00:00):
so how do you keep good tenants longer treat your
tenants like they actually yourclients and consider offering so
you can definitely tell that thefeeling in general is doing a
little bit worse than at 19152we're seeing higher rents and
they're closing at higheramounts and much faster so for

(00:23):
19114 a total of 24 units werelisted with a median listed
price of We're here to shareinsights and experiences, not
legal or accounting advice.

(00:43):
Be sure to talk to yourattorney, accountant or
professional advisor beforemaking any decisions.
Everyone's situation isdifferent, get the help that is
right for you.
Hi, everyone, and welcome backto the Phila Landlord Guy.
I'm your host, YuriySkripnichenko, the guy with
impossible last name.
Just think of me as Landlord,Phila Landlord Guy.

(01:04):
I'm a licensed real estatebroker and certified property
manager here in Philadelphia.
Today, we're diving into a topicthat hits every landlord right
in the wallet, the currentmarket snapshot for July 2025.
We're going to talk about thegrowing squeeze on landlords'
profits, what today's Philarenters actually want and some

(01:26):
smart, no-nonsense strategies tomaintain profitability and
attract quality tenants in yourproperties.
We'll also dive into a couplespecific Northeast Philly zip
codes 19114 and 19152.
So let's jump right in.
First up, let's talk about thesqueeze.
If you are a landlord inPhiladelphia, you are feeling

(01:48):
it.
Your operating costs are on therise.
One of the biggest culpitslately is property taxes.
We've seen various discussionsand reassessments in Philly and
often that means higher billsfor the property owners.
When your property tax climb itdirectly impacts your bottom
line you need to be factoringthis into your rent analysis and

(02:10):
your overall budget don't justassume that the last year
numbers will hold true this yearthen there is insurance cost
it's a national trend right nowbut it hits here in philly heart
especially with our olderhousing stock premiums are not
getting cheaper what you can doabout it Shop smart.
Don't just auto renew withoutgetting competitive quotes.

(02:33):
Do not renew for six monthspolicies.
Always select one year policy.
Look into what your policyactually covers and what it
doesn't.
Sometimes a slightly higherdeductible can save you a lot of
money over a year, but make sureit aligns with your risk
tolerance.
And let's not forget maintenanceand repairs.

(02:55):
Inflation is not just affectingour groceries, it's impacting
the cost of maintenance andmaterial and labor for every
repair you make.
That lucky faucet, the HVACtune-up, and your appliance, it
all cost more than it was a yearor two ago.
So how do you mitigate thisrising cost without letting your
properties fall apart?

(03:16):
Well, regular preventativemaintenance is key.
Catching small issues beforethey become big and expensive
problems is crucial.
Also, building relationship withreliable contractors, which I
know is not easy in Philadelphiaor anywhere for that matter, but
that is a lifesaver and makesure that you always have
contractors that you can trustand use if something is going to

(03:40):
happen in your property or whensomething is going to happen at
your property.
And finally, while not alwaysdirectly paid by the landlord,
you increases can also play arole.
If you're a landlord in amultifamily building, you may
pay gas for everyone or you arepaying water for everyone, but
also higher utility bills areimpacting your tenant's ability

(04:01):
to pay rent.
If you have everything iselectric in the property and we
have colder winters and it takesa lot of electricity to warm up,
tenants might not be able toafford the rent.
So you need to factor thosethings in and those rising
costs, they actually cut in toyour profits and you need to
make sure that you are adjustingfor that.

(04:21):
So now let's zoom on a couple ofspecific Northeast Philly zip
codes that many of you eitherinvest in or considering buying
in.
We're talking today about 19114and 19152.
Let's start with 19114.
The zip codes includes a fewdifferent neighborhoods.
And according to recent censusdata, the median household

(04:44):
income in 19114 is around 76$6,000, which is significantly
higher than the median householdincome in Philadelphia as a
whole, which is about$60,000.
This tells you a bit about thetenant profile you may find
here.
As for the housing types, thezip code is characterized by a
mix of single family row homesand detached or semi-detached

(05:07):
homes.
You also will find a good numberof smaller apartment complexes
and townhomes offering variousoptions for renters.
Next, we have 19152.
This area covers a few differentneighborhoods as well.
The median household income in19152 is approximately$57,000,

(05:27):
almost$58,000.
This is slightly below thecity's median, but it still
represents a solid working-classdemographic.
Housing in 19152 ispredominantly single-family row
homes, similar to much ofgreater northwest Philly, along
with a decent percentage ofduplexes.
complexes and some smallerapartment buildings.

(05:48):
It's a very stable area withstrong sense of community.
So now let's talk about therental market data for the
specific zip codes from Aprilthrough June.
We don't have the July data yet.
It usually comes up sometimes inthe 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 toJune.

(06:10):
If you're a landlord and needhelp staying compliant or
navigating this market shift,remember our sponsor, Trust Art
Realty.
They are offering all of ourlisteners a free rental analysis
or management advice session.
To claim your free consultation,send an email to trustartrealty
at phililandlordguy.com or clickthe link in the show notes to

(06:33):
fill out a quick form andsomebody will get in touch with
you.
So for 19114, a total of 24units were listed with a median
listed price of$1838 and themedian And closed price was
$16.50 with average days on themarket$36, which tells us that
in this neighborhood or in thiszip code, you still see that the

(06:58):
rents going down before theyclose.
For 19152, we had 25 unitslisted with a median listed
price of$19.50 and the closedprice$21.90 with the average
days on the market$19.
So this is Interesting and alittle bit counterintuitive.

(07:20):
For 19154 zip code with a muchhigher median income, the rents
are actually lower and they'restill dropping for the closing
and it takes longer to rent themout.
But do not forget that we havemore apartment buildings in this
zip code and that factors intothe pricing.
So the price as a median priceor average price may be lower

(07:44):
due to that.
And the days on the market canbe higher due to that as well.
Where at 191.52, we're seeinghigher rents and they're closing
at higher amounts and muchfaster, even though the medium
income in the area is lower thanthe median for the whole city.
That is an interesting trend,but you can see that both of

(08:05):
these areas are still verystable.
Northeast Philly zip codes withgood tenant basis, and both of
them are renting pretty fast,which definitely helps you.
So for the entire city ofPhiladelphia in June, the median
listed price was$1850, and themedian closed price was also
$1850, with an average days onthe market$47.

(08:28):
So you can definitely tell thatthe feeling in general is doing
a little bit worse.
than Northeast zip codes, butstill 47 days is better than
what we were seeing in theprevious months.
At the same time, we are in thehottest rental season right now,
and 47 days, it's a significantnumber of days on the market for

(08:50):
this time of the year.
Quick update, our JumpstartNortheast Philly program is live
and we're accepting applicationsnow.
If you are in Northeast Phillyand you're looking to learn how
to find, buy, finance, fix,rehab cell.
or rent a property inPhiladelphia, this program is
built for you.

(09:10):
It is based on proven success ofJumpstart Germantown program and
focused on building local wealthwhile improving our own
neighborhoods.
You also will hear from multipleindustry experts such as
lenders, contractors, zoningexperts, and more sharing real
practical knowledge to help yousucceed.
Don't wait.
Space is limited.
The first program is running inSeptember.

(09:33):
The application process is opento apply.
Click the the link in the shownotes, or go to
trustartrealty.com, selectresources, jumpstart Northwest.
So beyond the specific zipcodes, let's look at the broader
market picture.
According to the recentBiggerPockets insights, the
national housing market isdefinitely shifting.

(09:54):
Thousands of homes are sittingunsold 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 nationallevel, we're still seeing the
median list price hitting, goingup.
And at the same time, we'reseeing more price cuts than in

(10:16):
any June in years before.
about 20% of listings gettingprice cut.
What's interesting for us inPhiladelphia is the regional
breakdown.
Sunbelt markets are seeing aflood of listings while the
Midwest and Northeast, where weare, remain tighter.
Another BiggerPockets reporthighlights that after a huge run

(10:40):
of high prices and bidding wars,things are finally shifting and
price growth has slowed to just1.4% annually which is below
inflation meaning thatdisciplined investors can now
actually buy at a relativediscount all of this data
supports that we're seeing themarket is normalizing renters

(11:01):
are savior and they have moreoptions it is no longer just
about providing a basic roofover 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 thesame kitchen from the 70s or the

(11:24):
80s, you're going to struggle tocompete with newer units, even
if they are in less desirableareas.
These are the upgrades that makea big difference in attracting
and retaining quality tenants.
But also when you're thinkingabout upgrade, don't think just
about the cosmetics appeal ofit.
Make sure that all themechanicals are there because if

(11:46):
you just make cosmetics and youhave old plumbing or old
electric, it will break down andit will damage all of your
cosmetic appeal.
So this brings us to the priceand pressure.
With more and more newconstruction hitting the market,
especially in areas like CenterCity, Northern Liberties and
Fishtown, there is moreinventory available.

(12:09):
This This means that the rentgrowth may be flattering or you
may even need to adjust yourpricing downwards to avoid loan
vacancies.
Overpricing your unit, even by alittle, can lead to weeks or
months of vacancy, which is farmore costly than a slightly
lower rent.
So how do you keep good tenantslonger?

(12:29):
Tenant turnover is a killer foryour bottom line.
The cost of cleaning, minorrepairs, or bigger repairs,
advertising, and lost rentduring vacancy adds up fast.
Focus on retention strategies.
Be responsive to maintenancerequests.
Treat your tenants like they'reactually your clients and

(12:49):
consider offering smallincentives for lease renewals.
A happy long-term tenant is yourmost valuable asset in this
game.
Now for the actionablestrategies.
What can you as the Phillylandlord do in this environment?
First, smart renovations.
Don't just throw money at theproperty.
Focus on upgrades that providethe best ROI.

(13:12):
In older Philly, housing stock,cosmetic updates, fresh paint,
modern light fixtures, updatedkitchens and bathrooms often
yield the most bang for yourbuck.
Especially energy efficiencyupgrades like Better Window or
HVAC systems can also attracttenants by lowering their
utility bills.

(13:33):
Remember, you don't need a gutrehab to stay competitive.
Second, conservative budgetingand robust services.
With rising property taxes,insurance, and maintenance
costs, your profit marginmargins shrink quickly.
Ensure your financial modelsaccount for all of these
increases.
And perhaps most importantly,build your cash reserves.

(13:56):
This isn't optional.
You have to have cash reserve incase if you have longer vacancy
or if your renter is goingunderwater and you need to cover
all the expenses on theproperty.
So finally, effective marketingscreening.
In a more competitive market,your marketing needs to be top

(14:16):
notch.
High quality photos, detaileddescription and clear
communication are essential.
And when it comes to screening,do not lower your standards.
Finding a good tenant startswith a good thorough process.
Make sure that you utilizingcomprehensive background checks
and credit pools and incomeconfirmation and everything that

(14:39):
you do to make sure that you geta good tenant in place.
All right, that wraps up today'ssolo update.
We covered the increase inoperating costs impacting Philly
landlords, the evolving demandsof today's tenants, and
actionable strategies for smartrenovation, robust budgeting,
and effective marketing.
We also took a closer look atthe demographics and housing in

(15:02):
19114 and 19152 zip codesalongside with the latest
national market trends thataffects us locally.
Staying on top of these changesisn't optional, is critical to
protecting your investment andplanning for the future.
If you find this podcasthelpful, please take a second to

(15:22):
follow, rate, and review thePhilly Landlord Guide whenever
you listen.
It really helps us grow andreach more Philly Landlord guys
and girls like you.
Don't forget to follow us on allsocial media at Philly Landlord
Guy.
Next time I'll be back withanother guest.
You won't want to miss it.
Thanks for tuning in.

(15:43):
I'll catch you up in the nextepisode.
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