By Robert Griswold, Steven R. Kellman and James McKinley
Saturday, June 2, 2007
Q: I own a condo that I have rented out for 13 years. I'm concerned about my property manager.
The last tenant sublet my condo to another person. The new occupant caused considerable damage before he was removed, and I found out about the damage through a third party, not my property manager.
Then, without my knowledge, the property manager brought in a "contractor" he found through a small ad in a local newspaper to do the repairs. The work was never completed, but my property manager bugged me about paying the contractor, whom he appears to use on many of his managed properties.
After I paid the contractor, I found out that he was unlicensed and that there was an arrest warrant out for him. He had stolen a custom fan from the dining room and other materials I had purchased to repair the condo. The front door, which is a custom-fit door, also was damaged and will be expensive to replace.
I was able to track down the former tenant who was on the lease and got him to pay for most of the repairs, except the front door. I can't find the contractor, and both the fan and the front door still need repairs that I feel I have already paid. What should I do?
Property manager Griswold replies:
A: Consider yourself lucky that you were able to get the former tenant to voluntarily pay for most of the damages. You will have to pay for the front-door repairs. You should do this immediately through a licensed contractor or trusted handyman that you hire and supervise.
The next item on your agenda should be to terminate your property management agreement as soon you can under the existing contract.
I am a property manager, so I know it's possible that a tenant can quietly leave without telling you and another tenant can quietly move in, especially if the rent continues to be paid by the original tenant.
However, the issues about the contractor clearly indicate that the property manager is unprofessional. You are bound to continue to have problems. I would cut losses and hire a competent property manager.
You should also file a police report about the stolen property. You may want to seek reimbursement for the stolen items with a small-claims action against the property management company.
Unless it's gross negligence, property managers typically are not responsible to indemnify their clients in all circumstances when the rental property is damaged by a contractor, the work is not completed properly or things are stolen. That is why you carry rental property owner's insurance.
However, this property management company appears to have failed to conduct background or reference checks on the contractor.
The arrest warrant may not have been reasonably discovered by the property manager, but in most jurisdictions, it's easy enough to find out whether someone has a contractor's license.
References should always be verified the first time a property manager uses a contractor.
Q: Isn't it illegal for a condominium association's covenants, conditions and restrictions to prevent a condominium owner from renting to Section 8 tenants?
James McKinley, a lawyer for landlords, replies:
A: Section 8 housing is a federally subsidized program that pays a portion of the qualified tenant's rent. I am not aware of any jurisdiction where a landlord would be engaging in illegal discrimination for turning down a Section 8 resident if the landlord is not participating in the program. However, a condominium association does not have the right to prohibit a property owner from participating in the Section 8 program.
Steven Kellman, a lawyer for tenants, replies:
A: Condominium associations function like mini-governments. Many times, what they do is in conflict with local law. They also seem to get away with many things that they should not.
They accomplish this because they are a private governing body empowered by the homeowners who sign on to the governing rules, such as those covenants, conditions and restrictions, when they buy the unit.
Those rules may include what color you may paint your door and whether you can put a banner of your favorite football team in the window. (Before buying a condominium or a home in any project governed by an association, read all the rules carefully.)
There may also be rules about using the units as rentals or restricting them to owner-occupants.
If the units may be used as rentals, limiting the tenants to unsubsidized ones may run afoul of federal laws that govern some subsidies, such as Section 8. I believe that an association that doesn't allow Section 8 tenants but allows market-rate tenants raises a red flag that the rule is illegal.
This column on issues confronting tenants and landlords is written by property manager Robert Griswold and San Diego lawyers Steven R. Kellman, director of the Tenants Legal Center, and James McKinley, member of the Moffitt & Associates law firm, which represents landlords. E-mail your questions to Griswold at rgriswold.inman@retodayradio.com. Questions should be brief and cannot be answered individually.
Copyright 2007 Inman News Features
Distributed by Inman News Features
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