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HOAs Hate Renters


By billdeegan   Follow   Thu, 1 Nov 2012, 1:39am PDT   2,498 views   16 comments   Watch (2)   Share   Quote   Permalink   Like (1)   Dislike  

http://www.multifamilybiz.com/PR/1403/Homeowners_Associations_Rage_War_Against_Renters_C...

Citing a troubling trend taking place in the United States by HOAs and local governments to limit the number of renters in single-family home developments, Mr. Deegan called these restrictions “misguided, discriminatory and based on societal and cultural stereotypes.

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Mr Happygoluckofus   befriend   ignore   Thu, 1 Nov 2012, 1:48am PDT   Share   Quote   Like (3)   Dislike     Comment 1

That has always been the case.
Any renter that doesn't dart from their car to their door, and never look out their windows or door, until they make a morning mad dash back to their car. Will incur the wrath of the Condo board.

E-man   befriend   ignore   Thu, 1 Nov 2012, 3:48pm PDT   Share   Quote   Like (5)   Dislike     Comment 2

If a complex has more than 50% renters, the lenders will not finance a purchase. That means cash purchase only. When people pay cash, they expect a discount. Then the downward spiral starts.

HOA members typically consist of homeowners. Homeowners just want to protect the value of their property. It's hard to blame them.

HEY YOU   befriend   ignore   Thu, 1 Nov 2012, 6:37pm PDT   Share   Quote   Like (4)   Dislike     Comment 3

If one doesn't want bad neighbors,they should buy all adjoining properties or STFU.

E-man   befriend   ignore   Fri, 2 Nov 2012, 1:12am PDT   Share   Quote   Like (3)   Dislike     Comment 4

HEY YOU says

If one doesn't want bad neighbors,they should buy all adjoining properties or STFU.

In general, people buy condos because they can't afford to buy a SFH. You can't blame them for wanting to protect their asset. However, the restrictions that the HOA put on a complex is a double edged sword. I've seen it works both ways.

That's why be careful what you wish for. :)

lostand confused   befriend   ignore   Fri, 2 Nov 2012, 1:17am PDT   Share   Quote   Like (2)   Dislike     Comment 5

Well plenty of SFH fall under HOA too. I don't like HOAs. It is bad enough you have to deal with the govt and property taxes and code on your own property. To buy a house and have to deal with nosy neighbours deciding what height your plants can be and other nonsense-I would rather keep renting.

Mr Happygoluckofus   befriend   ignore   Fri, 2 Nov 2012, 1:41am PDT   Share   Quote   Like (1)   Dislike     Comment 6

E-man says

In general, people buy condos because they can't afford to buy a SFH.

In South Florida you could buy two SFH's for the price of one desirable Condo. The same for renting in one.
If I were going to rent in a building though, I suppose I would rather live in a commercial rent complex. With clubhouse, gym, and pool facilities that are meant for the renters.

REpro   befriend   ignore   Fri, 2 Nov 2012, 3:58am PDT   Share   Quote   Like   Dislike     Comment 7

Recently I was evaluating a small condo complex. Investor owned units exceeded the number of homeowners so cash only sales. Complex built in 80’s but with visible deferred maintenance issues. HOA fee not cheap (no pool), in the area of $300/mo., ring my bell. HOA management disclosed that 27% do not pay HOA fees. I presume in this group are mostly homeowners because if investors put his hard cash, is more likely they pay HOA fee.

zzyzzx   befriend   ignore   Fri, 2 Nov 2012, 4:52am PDT   Share   Quote   Like   Dislike     Comment 8

REpro says

HOA management disclosed that 27% do not pay HOA fees.

I'm surprised that they even told you that.

wave9x   befriend   ignore   Fri, 2 Nov 2012, 5:08am PDT   Share   Quote   Like   Dislike     Comment 9

lostand confused says

Well plenty of SFH fall under HOA too. I don't like HOAs. It is bad enough you have to deal with the govt and property taxes and code on your own property. To buy a house and have to deal with nosy neighbours deciding what height your plants can be and other nonsense-I would rather keep renting.

By renting, you will still be answering to the HOA board via your landlord. And on top of that you will be answering to your landlord who will have additional limitations and requirements imposed upon you.

033   befriend   ignore   Sun, 4 Nov 2012, 6:10am PST   Share   Quote   Like   Dislike     Comment 10

REPro,
The building can't get financing because....

1) more than 15 percent of the units are delinquent on HOA assessments. As of 2011, FHA is counting REOs;

2) more than half of the complex is being rented out already;

3) When deferred maintenance becomes, say, roof failure, tenants can stop paying rent until the problem is fixed by the HOA.

4) Which won't happen soon at 27 percent in arrears.

I'd bet some of this 27 percent aren't paying their mortgage while enjoying rental income. This will go on until, well, the roof fails.

033   befriend   ignore   Sun, 4 Nov 2012, 7:26am PST   Share   Quote   Like (1)   Dislike     Comment 11

Regarding the original link from "Renter Nation":

SIOUX FALLS, SD - What do Homeowners Associations have against renters? That is the question being asked by renting lifestyle advocate Bill Deegan, the CEO of Renter Nation, the country’s only nationwide group “by, for and about residential renters.”

FLUSH A CITY WITH CASH FROM OIL AND GAS, AND SPOILED BRATS TEND TO PROLIFERATE IN IT.

Citing a troubling trend taking place in the United States by HOAs and local governments to limit the number of renters in single-family home developments, Mr. Deegan called these restrictions “misguided, discriminatory and based on societal and cultural stereotypes.”

THIS ISN'T ABOUT CONDOS AT ALL. WHAT SITUATION IS HE TALKING ABOUT?
ANTIOCH?

As recently reported by USA Today, HOAs and many municipalities across the country are basing these restrictions on the false premise that renters “bring down property values.” As Mr. Deegan asserts and as supported by respected university studies including those conducted by the University of Pennsylvania’s Wharton School, there is no empirical evidence to suggest that the presence of renters in a community cause property values to decline.

IT DEPENDS.

In fact, according to Mr. Deegan’s group, restricting the number of renters in a community is just another example of discrimination directed toward a minority group. The number of homeowners outnumbers renters by two to one. “To single out more than 100 million hardworking Americans because we rent flies in the face of true American values of equality. Can you imagine communities restricting other minority groups in this day and age? We can’t either and that’s why we continue to fight for the respect and dignity due all who rent their homes,” Mr. Deegan added.

"RENTERS" ISN'T A PROTECTED GROUP. IS HE BITCHING ABOUT THE 55 AND UP COMMUNITIES IN SUN CITY AND SUCH? THEY'RE NOT DOING WELL.
OR IS HE TALKING ABOUT ANTIOCH?

In commenting further on the University of Pennsylvania study, Mr. Deegan noted that the Wharton analysis concluded that “homeowners are no happier, healthier or engaged in their community than renters.”

PROBABLY NOT, ESPECIALLY IF THEY BOUGHT THEIR HOUSE 2005-2008. THAT APPEARS TO HAVE BEEN AN EQUAL OPPORTUNITY SCREW-OVER.

“Renter Nation will continue to stand in the forefront of the fight against cultural and societal bias directed toward renters, the renting lifestyle and the providers of multifamily housing,” Mr. Deegan concluded.

MULTIFAMILY HOUSING =! SFR.

Renter Nation is an operating unit of Sioux Falls, South Dakota based Media Demographics, Inc. Media Demographics is a leading provider of innovative marketing solutions to the multifamily housing industry.

I DIDN'T KNOW THERE WAS MULTI-FAMILY HOUSING IN SIOUX FALLS. REALLY?

HE SHOULD COME TO SAN FRANCISCO, BUT, EH, HE COULDN'T AFFORD IT. IS THAT THE NEXT DISCRIMINATORY THING?

gbenson   befriend   ignore   Mon, 5 Nov 2012, 2:04am PST   Share   Quote   Like   Dislike     Comment 12

I am on a HOA board and most of my rentals have a governing HOA. Not having to deal with all the exterior stuff is how I can manage a dozen properties and still hold down a full time job and have enough time left over for my family.

033 says

I'd bet some of this 27 percent aren't paying their mortgage while enjoying rental income.

Nope, almost every HOA on the planet has a provision that allows rent to be paid directly to the HOA in the event that the owner is late on his HOA payment. In this regard most HOA's like rentals (they almost never miss payments), however the negatives outweigh this positive. There are responsible owners, and deadbeat owners who will up the rent and take anyone who will pay because they don't have to live next to them. Renters just don't have the same sense of responsibility to keep the place up or not piss off the neighbors. IMHO these deadbeat landlords are idiots because I am sitting there watching their units get totally trashed by the tenants, that extra $100/mo they are getting along with the security deposit will never cover the damage the tenants are doing to the unit.

ELC   befriend   ignore   Tue, 18 Dec 2012, 9:39pm PST   Share   Quote   Like   Dislike     Comment 13

E-man says

HOA members typically consist of homeowners. Homeowners just want to protect the value of their property. It's hard to blame them.

If the owner can't generate income for their condo which is often a second home and often under water, then it becomes a foreclosure. So either way it's trouble. I'm so glad I rent now. Condo living sucks. Aholes run the board and the people were much less friendly too. Idiot security guards. Senseless rules.

upisdown   befriend   ignore   Wed, 19 Dec 2012, 12:40am PST   Share   Quote   Like   Dislike     Comment 14

John Bailo says

I recently went head to head in the comments of our local newspaper with a homeowner who basically accused renters of freeloading when it came to property taxes.

In every location that I've ever lived in, the tax rate was higher for rentals. And, some states have an exemtion for retired people that locks in their property taxes and they never increase.

P N Dr Lo R   befriend   ignore   Wed, 19 Dec 2012, 1:23am PST   Share   Quote   Like   Dislike     Comment 15

gbenson says

IMHO these deadbeat landlords are idiots because I am sitting there watching their units get totally trashed by the tenants, that extra $100/mo they are getting along with the security deposit will never cover the damage the tenants are doing to the unit.

Boy that's the truth! I lived in a 14 acre, 214 unit complex called Bordeaux Village in Dallas for 24 years which always had a mixture of owners and renters, but owners usually out-numbered renters. The owners of the unit immediately next to mine at 6463 Bordeaux, 75209, lived off-site, but had a series of good renters for most of the time. However, after a long-term tenant moved out in 2001, they did a complete renovation which included the then popular granite countertops and other nice amenities. They rented it immediately to a lady chiropractor. I knew things were not going to go well after the U-Haul had sat behind our back gates for over a week--I called U-Haul, gave them the truck number and they said it was a week over due--I told them where it was and they came and got it. Then, at night I would smell kerosene. I could tell when I walked by that she was using kerosene lamps--she had used up the previous tenant's electric service, then just continued on with no electricity, burning those lamps every night with whomever would come over--I never really knew who lived there. At 1:30 in the morning, I would be awakened by noises from a crowd in the bedroom which adjoined mine and would continue until around 4:00 a.m. I would relay all this to the owner whom I knew and he was at his wits end. Early on the glass of the back storm door was broken out and I could only imagine what the inside must be like. He finally had to resort to every legal remedy known to mankind to get her out and needless to say she'd destroyed the interior. I had sometimes thought of keeping my place as a rental unit when I moved back to Waco, but that changed my mind for good. I put it on the market in April of 2005 and sold it in June. The buyers completely renovated it and it took them two years to re-sell it. I think it's on the market again.

I still go by there when I visit Dallas and it remains a beautifully maintained property bordered by Lemmon, Inwood and Mockingbird.

http://www.zillow.com/homedetails/6438I-Bordeaux-Ave-6438-Dallas-TX-75209/26904272_zpid/

EBGuy   befriend   ignore   Wed, 19 Dec 2012, 6:18am PST   Share   Quote   Like   Dislike     Comment 16

Pretty soon I bet the mortgage deduction will be going away from what I'm reading.
Only for people who reside in their homes. Investors who own rentals can claim interest as a business expense.

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