If you live in a PUD, more commonly known as a subdivision, rental properties can impact your home’s value in a myriad of ways. If the house is next door to you, you hope they are conscientious about the lawn and pets. If you are thinking about selling, all homes in the subdivision sold in the last six months affect your appraisal. Properties acquired as rentals tend to have sold cheaper, which is why they were attractive to an investor.
If you have a Homeowners Association any home that does not pay their share of the dues adversely affects the association. Dependent upon the lease the tenant may or may not be required to pay the annual HOA dues. If those dues aren’t paid many HOAs fine and lien the properties making them very hard to sell, and often making the tenant hostile. No one likes to live near a hostile neighbor regardless of the situation.
In some areas the governments have stopped housing indigent people. They have instead allowed the private housing sector to take over the Section 8 program. We know of cases where homeowners could not sell their homes for multiple reasons: owed too much or maybe a job transfer forced a move. These homeowners found tenants in the Section 8 programs where the government pays the rent for the tenant. If the government is paying their rent, it is probably safe to assume there isn’t a great deal of income left for yard maintenance and general upkeep.
In the last few years during the height of the foreclosure sales we have seen a huge increase in investor purchases. Rental properties are in almost every development. Many of these properties have been sold to an LLC, Limited Liability Company or purchased as part of a portfolio that will be sold to foreign investors.
If you have a complaint about a vicious dog or a badly maintained lawn to whom do you complain? If you complain to the tenant they may or may not care. Searching the tax records of your local county you may find the owner, but what have you found? Finding an out of state corporation, an LLC, or even worse an overseas corporation tells you nothing about finding a real person whom you can tell the lawn is a mess or the dog is scary.
Homes in America right now and for the last 3 years have been sold to investors on an alarming scale. HUD recently sold the defaulting mortgage notes of 124,000 single residence homes to one investment company.
Tenants occupy properties in any price range. No matter what the price range a bad tenant can make life miserable for the surrounding homeowners. But so can a bad homeowner! Most homeowners however take pride in what is their single biggest asset. In any case, being a good neighbor by offering help instead of criticism is usually the best way to solve a problem.
Build bridges not fences and the whole world will be a better place to live.
By Noelle Stewart a Stewart Sister