Slum Lords

Started by TamaraW • 10 replies • 1761 views

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TamaraW (Ohio)
Posts: 193

Posted:

We currently have an investor, who has 2 homes in our 151 home neighborhood. This man finds tenants straight from the Police Department, or so it seems. They violate about every rule and when he gets a violation he sticks up for the homeowner and not the community R&R's, Decs and bylaws. He does not pay his monthly assessments when the homes are not rented (only to catch up when they are) and we have just recently had to evict one of his tenants, I am sure leaving him a huge legal bill. We have a lien on one property for non-payment and I am sure before we can bring him into foreclosure, he will pay the bill.......

My point is - The BOD and PM have to continually violate this guy, babysit his renters, force him into compliance (currently having him replace all of the shrubbery in the front of his home the old renters tore out, fix the cable wire that is hanging on the side of the home from the top of the house to the ground). He does not care about his properties, he only cares about making the money.

I know the BOD and PM have a job too do, but it appears to me this guy is just a slumlord and dealing with him and his tenants on a daily/wkly/monthly basis is just ridiculous and upsetting to the homeowners as well.

Questions -
Anyone have to deal with this and how have you handled it?
IF not in the governing documents can a BOD declare an investor a slumlord and look to get him out?
Has anyone adopted rules into their documents that investors must do a regular check on their properties? I ask this because we do have alot of renters and although most of them are good, some investors just seem to be absent for years.

FrancescaM (Washington)
Posts: 264

Posted:

When I was on our board a couple od years ago, we had a similar experience. but only with 1 unit.

The man rented out to those who were HUD only. He had some good renters, but the last set took the cake. There was graffitti on their door, they had trash piled on thier balcony, there was more than one time they left thier trash in our lobby.. we just opened the trash and looked for a peice of mail. The resident verbally attacked one of our vendors, a hos board member and had what appeared suspicious activity throughout the night with visitors in and out. It got to the the point when we asked the homeowenr to come in with his renter.. and threatend small claims case to the max amount of 5k per each unit in out building if thing did not quiet down. We had the advice of our HOA atty and PM behind us. The renters were evicted and the unit was sold shortly thereafert. The whole entire inside had to be gutted out, stirpped down to points to the studes. the damage done inside was NOT eve describable... seek legal advice if its that bad.

GeorgerwilliamsW (Indiana)
Posts: 975

Posted:

I have no experience with such a problem. But I do have a thought (one of a very few) . . .

Do your documents contain a general nuisance clause such as, "No noxious, destructive or offensive activity shall be allowed in any Homes, on any Lots or in the Common Area or any part thereof, nor shall anything be done thereon which may be or may become a nuisance to any other Owner or to any other person at any time lawfully residing on the Property."

If so, you may be able to seek an injunction against the owner. I would suspect it would take some time and several trips to court, as well as some significant legal costs. Then, with the injunction in hand, two outcomes may obtain. First you can call the local police to enforce the injunction. And second, you can seek to have the owner held in contempt of court with a fine or jail sentence.

A good attorney may also uncover some local ordinances about nuisances that could be enforced.

TamaraW (Ohio)
Posts: 193

Posted:

Quote:

Posted By GeorgerwilliamsW on 09/13/2008 9:31 AM
I have no experience with such a problem. But I do have a thought (one of a very few) . . .

Do your documents contain a general nuisance clause such as, "No noxious, destructive or offensive activity shall be allowed in any Homes, on any Lots or in the Common Area or any part thereof, nor shall anything be done thereon which may be or may become a nuisance to any other Owner or to any other person at any time lawfully residing on the Property."

If so, you may be able to seek an injunction against the owner. I would suspect it would take some time and several trips to court, as well as some significant legal costs. Then, with the injunction in hand, two outcomes may obtain. First you can call the local police to enforce the injunction. And second, you can seek to have the owner held in contempt of court with a fine or jail sentence.

A good attorney may also uncover some local ordinances about nuisances that could be enforced.

We have that clause! One of the ones we used to evict his renters. I will pass the injunction question to our Attorney and PM.

TamaraW (Ohio)
Posts: 193

Posted:

What is an injunction? Just for my own personal knowledge?

MicheleD (Kentucky)
Posts: 4,491

Posted:

Quote:

Posted By TamaraW on 09/13/2008 9:59 AM
What is an injunction? Just for my own personal knowledge?

The more legal minded could probably answer better, but basically it's court-ordered compliance.

You go to court to ask someone to either stop doing something they shouldn't be doing or to do something you allege they are required to do.

If the judge finds you have sufficient proof that the person involved is doing something they agreed not to do (by way of the deed restrictions) or NOT doing something they are required to do (by way of the deed restrictions), the court orders them to comply.

Then it becomes an issue of contempt of court if they don't abide by the judge's ruling.

Which can sometimes have serious consequences, but I certainly wouldn't want to be held in contempt of court.

The judge could impose fines or even jail time to remedy the contempt.

GlenL (Ohio)
Posts: 5,491

Posted:

Tamara, we had a person who was notorious for not paying their Association fees up to the point of foreclosure, then pay them and the fees involved (which were not cheap) and start the whole process again. What seems to have curtailed his behavior so far is the BOD changed the collection policy doubling the late fees for egregious repeat offenders.

I would also stop into the County/City Clerks Office for a friendly chat. Explain the problems you are having with this person and ask if they can suggest anything to help you. These people are the gatekeepers of information, they know what all of the different departments are supposed to be doing and just who to ask for help with a particular problem. This might range from the Fire Department stopping by regularly to make sure the rental property has working smoke detectors to who knows what.

BTW Did you know that Ohio now has a law that requires owners of residential rental property to register it with the county auditor? This is a link to our County's form.

http://www.clermontauditor.org/upload/RESIDENTIAL_RENTAL_PROPERTY_REGISTRATION.pdf

Studies show that 5 out of 4 people have problems with fractions

TamaraW (Ohio)
Posts: 193

Posted:

Thanks guys, Glen - I do know this. I remember seeing it in the mail and was amazed that if you did not sign up for the 2.5% reduction, then they would assume you were a rental and then get fined for not registering your home.

MicheleD (Kentucky)
Posts: 4,491

Posted:

Quote:

Posted By GlenL on 09/13/2008 10:44 AM

BTW Did you know that Ohio now has a law that requires owners of residential rental property to register it with the county auditor? This is a link to our County's form.

http://www.clermontauditor.org/upload/RESIDENTIAL_RENTAL_PROPERTY_REGISTRATION.pdf

Wow, Nice.

I think I'll ask our board member who is a retired judge if he'd like to do some research on this for Kentucky!

KirkW1 (Texas)
Posts: 1,665

Posted:

Richardson Texas has taken very active steps to try and get rental units to be maintained. Apartment buildings are subject to annual inspections. They won't enter units that are rented out unless the tenant requests them. But they will all units were requested. A police officer goes along to ensure security in the event that a tenant requests entry but is unable to be present.

They also setup where single family dwellings and duplexes had to pass a city inspection before a new tenant could be brought in.

MaryA1 (Arizona)
Posts: 7,043

Posted:

Quote:

Posted By MicheleD on 09/13/2008 7:43 PM

Wow, Nice.

I think I'll ask our board member who is a retired judge if he'd like to do some research on this for Kentucky!

Maricopa Co, AZ also has this law. I believe there's a fine but can't recall the amount. The prop. tax is about double for rentals and that is why so many property owners who rent their properties aren't too keen on informing the Co. Also, Glendale (where I live) has a requirement to obtain a City business license if you are renting your property.

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