Business, property management, real estate

$320 in permits

Last week I had a conversation with a property manager in a nearby city – a small city in Pennsylvania.  He said “You don’t want to work in this city, it is horrible!”  I thought I knew what he was talking about because it is an economically challenged city.   He replied, “Oh, yes that is true but guess how much it costs for a permit to change a water heater?”  I guessed $100.  Nope – $320!

$320?!?!  Just for the permits to change a water heater??????  Let’s assume that we can replace a water heater for $1,000 (some may be higher/some lower).  That is a 32% tax on top of the cost.  PLUS you can’t do the paperwork on line.  You need to go into the city government center, fill out a building permit, plumbing permit and electric permit.  Of course you need to hire a master plumber (forget $1,000).  You need to get the work inspected by a plumbing inspector and an electric inspector.  FOR A NEW WATER HEATER!

I guess the tenants are going without hot water during all of this government intervention.

http://www.amazon.com/Why-Dont-Invest-Real-Estate/dp/1490346279/ref=sr_1_2_bnp_1_pap?ie=UTF8&qid=1396620527&sr=8-2&keywords=brian+fulmer

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