Considerate landlords vs abusive landlords in Coatesville, PA

MY friend David DeSimone thinks like this when he manages his properties in Coatesville:


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. 

And in some illegal boarding homes living conditions can be very dangerous.

SEE:

Saturday, January 17, 2015

"She's got political connections, nothing we can do."-Coatesville PD

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. 

SEE:

Sunday, July 12, 2015

Chester County won't be able to plop more Section 8 housing into Coatesville like $6M Roymar Hall

Related:

Monday, April 11, 2011

Section 8 Housing Turning NIMBY on its head and Coatesville is exquisitely positioned to be the epicenter of the next real estate boom of Chester County.

The most outrageous of the "abusive" landlords is Amrit Lal.
SEE:

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.

Landlord Amrit Lal was supposed to pay $110,000 to the City of Coatesville instead Harry Walker and Andrew Lehr allegedly accepted his check for $5,000.

There was a long fought court battle between Coatesville landlord Amrit Lal and the City of Coatesville over unpaid fines for several of his Coatesville properties. After many years and a LOT of legal expenses paid by the City of Coatesville the City of Coatesville won:

MORE AT:

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.