OWNER OCCUPIED PREFERRED

By Darlys Walker

Published August 14, 2013

One of the most common complaints heard in a Condominium or HOA community is just how little respect the "RENTERS" have for maintaining and caring for the property.  Boards will spend an enormous amount of time developing stringent leasing provisions in an effort to ensure only quality residents reside as their neighbors.

Having spent 20 years in the multi-family industry, leasing apartments and dealing with transient occupants, the average renters stay is 16-months.  I have first-hand knowledge of the destruction caused by frequent move-in and move-outs, the "devil may care" attitude shown towards the common areas and the lack of consideration shown to neighbors when it comes to noises and other disturbances by RENTERS.

Screening potential tenants may seem like a good idea and while it may have an impact on the type of tenant you will get, that impact is too small to measure.    

With my career planted firmly in both the Condo/HOA arena and the Multi-Family-Apartment area, I believe there is a different perception by the RENTER, depending on whom they lease from.

When leasing an apartment, the lease agreements and addendums are very lengthy and the Management staff will spend time reviewing this documentation with the prospect, prior to the actual move in.  The renter knows that if they step out of line, there is likelihood, they will be EVICTED. 

On the other hand when a prospect rents from a private Homeowner, they typically follow a much less formal qualification or move-in procedure. Even if there is a Management company involved, the process is much more lax.   If the renter is leasing in a HOA, they know there are likely few rules and in most cases NO site staff to ensure they don't step out of line.  I believe they also are of the opinion as long as they pay their rent on time; the Homeowner is oblivious to their actions.   If the Renter is leasing from a Condo owner, they have more restrictions to follow and a Management staff present during the day, but since they rent a PRIVATELY OWNED UNIT, they believe they are entitled to be treated as an Owner, often times misusing the common areas and amenities because "Hey I own here (even though they don’t). What can they do, they can’t evict me."

Don't be fooled into thinking that by establishing and implementing strong qualifying criteria your problems will vanish.  Even those individuals with a credit score of 750 and an income of $75K with no criminal history can turn out to be a nightmare in your community. 

We suggest that you verify what rights you have been given in your Condominium documents when it comes to establishing your leasing procedures.  Require the use of a detailed lease agreement and check with your legal counsel on your ability to file eviction papers should the Renter become an issue. 

Not all RENTERS are bad; in fact most of us have likely rented during some point in our lives. Establishing a strict protocol, enforcing it as standard, and educating and training the Renter on acceptable behavior will be beneficial to both the individual Homeowner as well as the Association.