So, now you are considering purchasing rental properties in Reading, Pa, or you are a Realtor working with an investor in Reading. What is the next step towards getting those "golden" rental permits? It's not as difficult as you may think.

  The first thing to consider, hopefully before making that offer on a rental property, is whether or not the property is a "legal" rental. The question to ask before making that offer is "Does the property currently have permits for each unit?" If the seller is not able to answer that question or says "no", then you need to be somewhat concerned. A quick phone call to the Reading Codes office can tell you whether the property has been permitted for rentals in the past or not. Please remember that the answer you receive over the phone should only be used as a guideline. Each property will have to go through a Zoning Permit Application process.

   Ok, so now you have been told by Codes that the property should be able to be considered a rental, what's next? At the time of settlement, the buyer must initiate a Health and Safety Inspection. The fee for this inspection varies depending upon the number of rental units in the property. Once requested, the City has up to six months to inspect the property. This inspection is basically a Codes inspection. Any violations found must be repaired, with the proper trades permits. The only way to avoid this inspection is if the property was already Codes inspected within the past six months. Of course, if there were any violations cited those must be corrected before settlement.

  The next step, and you don't have to wait until after the Health and Safety Inspection, is to apply for your rental permits. There is a three part process for this and should be done at the same time. You must fill out an application for a Zoning Permit, a Business Privilege License, and a Rental Permit for each unit in the property. The Zoning Permit is done just once, the Business Privilege License and the Rental Permits are renewed each year. If you own more than one rental property in Reading you will only need one Business Privilege License each year. It basically gives you permission to operate a "business" as a landlord in the city.

  There are many people who ask me how difficult it is to have rental properties in Reading, Pa. They have heard from other Realtors and Investors that the City of Reading is cracking down on rental property owners. I hear the fear in their voices as I say to them, "Relax, the city codes are not so scary."

  Basically the City of Reading is trying to ensure safe properties and improve the value of the neighborhoods. For the last 2 decades the city codes enforcement has been less than perfect. The result is seen in many properties which are now falling apart. Most of the homes in Reading are about 100 yrs old and for many the age shows.

  Since I have been a Realtor I have seen people from PA, NY, NJ, CT, DE, CA, FLA, MD, AR, MA, TX and more states buying up city homes faster than one could imagine. The reason for this is that the Berks County, Pa market is priced well and a beautiful area to live and invest in. What often happens with out of state investors, buying properties for rentals, is that since they are not here, the properties often become neglected.

   The City of Reading has seen a decline in property condition and now has decided to do something about it. Their intentions are primarily good, but sometimes their methods can be confusing. In the last year the city has passed a few ordinances regarding how a person can become a landlord in Reading, and once a landlord how to take care of the property. The process of getting the appropriate rental permits can be cumbersome, but if done properly it should be smooth sailing afterwards. The key is to work with a knowledgable Realtor who is experienced in dealing with the city codes office and stays current on the changes in city government.