The Greatest Economics Lesson from Softbox on Vimeo.
David's properties are among the best values for renters who want to live in the City of Coatesville. When David acquires a property he guts it down to the framework and then rebuilds it up to code. New wiring, plumbing, insulation, drywall and flooring goes in. When it's up to code the property is ready to rent. If the market allows a profit he will sell it. But in the meantime it is generating profits.
There are other landlords in Coatesville that use David's basic business model and treat people with dignity and respect.
David's rental property owner business model depends on safe streets.
But there are many politically connected landlords operating in the City of Coatesville who have what I call an abusive business model.
They buy decrepit properties at sheriff sales do nothing or a minimal fix up and rent the properties to low income people. Codes inspections can be infrequent and political connections can limit the efforts of the city to enforce codes.
The abusive property model depends on unsafe streets keeping property values low. In this way illegal drugs and abusive landlords have a symbiotic relationship.
Some landlords own single family homes and operate them as illegal boarding homes.
They put several unrelated people in single family homes rented by the week or month.
Living conditions can be poor.
Saturday, January 17, 2015
Nonprofits can also be rental property owners. Those nonprofits benefit from low property values.
High crime drives property values down. Section 8 subsidies are statewide. Non-profits can acquire many properties at little expense. Operating at minimal expense means more cash left over. A nonprofit may be very profitable for the operators of the nonprofit. Involving public officials can ratchet up the personal profitability of nonprofit operators.
Sunday, July 12, 2015
Monday, April 11, 2011
Tuesday, August 23, 2011
In 2007 the PA Commonwealth Court ordered landlord Amrit Lal to pay the City of Coatesville $110,000. It never happened.