Real estate Q&A: Corporate owners of house should be told of poor upkeep
QUESTION: The house across the street was purchased by one of those large investment funds snapping up properties. The upkeep has been less than stellar, and we are worried it will affect our values and neighborhood's charm. Is there anything we can do to encourage the fund to be a better neighbor?
ANSWER: Yes. Initially, if you live in a community with a homeowner's association, the community's rules and standards must be followed by each owner, no matter who or what it is. If you don't live in a managed development, you still have options.
If the problem is bad enough, you can get your town's code enforcement department involved. You can try contacting the firm directly and letting it know what is happening. While these real estate funds are large, the individual properties are managed by local groups. Ask your neighbor who the landlord contact is and politely complain.
If that does not work, contact the corporate ownership. These investors bought the homes to make a profit. They'll be rented for several years, then sold when values have sufficiently increased. So any issues that affect market value should be of great concern to the investment firm.
Think of these funds as a national fast food chain. If an individual store is performing poorly, the corporate headquarters will step in and fix the problem before it hurts the brand and costs too much money. Getting a reputation for poorly maintained properties could cost one of these mega-owners millions of dollars. The corporate office will want to know if a local management company is not doing its job properly.
ABOUT THE WRITER
Gary M. Singer is a Florida attorney and board-certified as an expert in real estate law by the Florida Bar. He is the chairperson of the Real Estate Section of the Broward County Bar Association and is an adjunct professor for the Nova Southeastern University Paralegal Studies program. Send him questions online at http://sunsent.nl/mR20t7 or follow him on Twitter @GarySingerLaw.
The information and materials in this column are provided for general informational purposes only and are not intended to be legal advice. No attorney-client relationship is formed. Nothing in this column is intended to substitute for the advice of an attorney, especially an attorney licensed in your jurisdiction.
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