18 Jun 2010
When The Lakes of Boca Raton started seeing the number of renters climb as the economy deteriorated, Alan Kellock discovered they were the only community in their zip code in West Boca that didn't have screening policies in place.
Owners could rent to anyone, and the homeowners had no say.
They will as of July 1, when their documents will require anyone who wants to rent to pass a criminal background check, employment and rental history and credit report. "We have had a number of problems with rental properties, which triggered this big change and why 75 percent of owners voted for this," said Kellock, chairman of the governing documents committee.
"It only takes one renter to make owners aware of the potential problems of letting anyone live there," Kellock said. "Simply by saying we have that obstacle to get past for renters discourages people who know they'll never get approved."
Renting has changed the landscape in many communities in West Boca, as absentee condo and homeowners scramble to hang onto properties until the real estate market rebounds and they can sell them profitably.
The impact of the increasing number of renters living in private communities was apparent at the June 8 meeting of the West Boca Community Council, which represents 120 member communities in West Boca.
The meeting was an update on the new, sweeping state law 1196 on condo and homeowner associations, which goes into effect on July 1.
Many of the questions for attorney Donna DiMaggio Berger were on how to deal with homeowners not paying their maintenance, and banks not maintaining or paying the condo or homeowner fees on foreclosed properties, the two biggest issues communities are facing.
But some questions were on renting, as communities try to take over foreclosed properties and rent them out to make up for shortfalls on maintenance fees. Members wanted to know if under the new law the association still had to go to court to take over abandoned units and rent them out. The answer was yes. And if the new law puts time limits on banks so squatters or people looking for vacant homes for drugs lab couldn't occupy the properties. The answer was no.
"If someone in the home is a renter, can we get our back dues from them?" an audience member asked Berger, managing partner of Katzman, Garfinkel & Berger and executive director of the Community Advocacy Network.
As of July 1, condominium, cooperative and homeowner associations may demand what's owed to the association from delinquent units.
"Everyone has had this groundswell of rental activity," Kellock said in a phone interview.
In his community, the renter issue came up when 5 percent of owners renting reached more than 10 percent, said Kellock, who also handles the website and communications for the West Boca council.
One renter even had to be forcibly evicted for not paying, he said.
"The absence of pride of ownership tends to foster different behavior than owners…" he said. "A neighbor may not be a good citizen by having all night parties or not may not keep up the property."
Real estate agents and some owners do their own screenings, said Kellock, who is a residential broker himself and discovered The Lakes was the only one in that didn't require tenant approval.
"We had never had a rental policy in 25 years. It was strictly between the owner and tenant," he said. "We were becoming a magnet for people who couldn't get past a screening. Now we will have more control over who moves in here and how they behave. We're making it known, if you want to live here you have to go through the hurdles."
by Marci Shatzman, Sun-Sentinel Forum reporter
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