How Rentals Affect Property Values

Consider These Risky Scenarios for Your Community:

Property Values May Suffer

We have all seen communities overrun with rentals. While leasing is not inherently a bad thing, it does present certain issues for community association management companies. If you have too many rental properties in a neighborhood of single-family homes or townhomes, it can cause property prices to stagnate or even drop. That’s because tenants don’t always maintain homes to the level that owners who actually live in the property do.

When homes get rundown, the whole neighborhood suffers.If you live in a condo association with too many rentals, your community could have an issue with future buyers obtaining financing. The Board needs accurate leasing information in order to stay compliant with standards required for FHA financing.

Lack of Proper Insurance

What happens if a renter causes damage to the common area and doesn’t maintain appropriate insurance to cover the incident? The association would bear the cost of repairs and possibly an increase to their premium if a claim is filed.


How can you control an illegal renter’s access to the amenities, such as the pool and fitness center? This is a great question, and one that poses certain challenges. Condos have an easier time if they use an access control system that provides the contact information for every owner. If there are issues with cars: speeding, parking, etc., then compliance helps identify the appropriate owner of the vehicle.

Security and Risk Management

Illegal renting can present security issues if the renter accesses the property without being tracked through an access control system. Unfortunately, there have been many documented incidents where tenant misbehavior poses a security issue to other residents

Safety, Awareness and Involvement

If you don’t know who your renters are, you have no way to contact them to let them know about: potential issues, emergency procedures, community news, projects, events, etc.