Over the past few years, there has been a major increase in renters in condos and HOAs, in part due to the surge of investors buying in community associations.
Although, many associations have a process for collecting information on leased units, it is not uncommon that the records may be incomplete or inaccurate for a variety of reasons. Not knowing who is leasing – whether legally or illegally – exposes the association to greater risk and liability. If the Board believes it is important to have this information and control, then it makes sense to implement a structured program that ensures compliance to the greatest extent possible.
More importantly, it doesn’t cost your community anything to use TenantTrack Plus! The investor owned units are assessed a minimal charge on an annual basis as long as they lease the unit. The service includes more than just enforcement of covenants.
For the Board of Directors, benefits include:
- No cost to the association
- No impact on dues
- On demand, cloud based program available anytime
- Minimal charge to investor-owners as long as they lease the unit
- Accurate monthly reporting
- Detailed lease administration
- Current landlord and tenant database
- Compliance oversight
- Standardized leasing with board approved addendums
- Financial controls
- Insurance management/assurance of proper renter’s insurance
- Lease permit wait list
- Tenant pre-screening
- Easily exportable data
- Minimized liability to the association for tenant misbehavior
- Peace of mind that the rental process is properly administered
For Owners and Tenants, benefits include:
- Fast, convenient and secure online rent payments
- Tenants can pay their rent online in seconds
- Online rent payments are automatically entered into TenantTrack Plus
- Online credit checks
- Association approved lease applications and addendums
- Owner Portal
- Rent Tracking and Collection
- Tenant Database
- Tenant Occupancy Percentage
- Tenant Portal
- Tenant Screening
- Vacancy Tracking
- Website Management
- Work Orders
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 an association. 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.
- Control/Access – 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.
Click here for a more information about how your community can benefit from TenantTrack Plus!