Housing Bust Spurs Rental Fears

Inspections Proposed, and Groups Are Vetting Possible Tenants

For years, Prince William thrived as a mecca for first-time home buyers. Now, county officials say they believe that the housing crash and the rise in foreclosures have led to a sharp increase in renters.

In just one month, between August and September of last year, the number of owners living in their homes in Prince William fell from 93 to 85 percent -- by far the most dramatic one-month drop in the Washington region, where rental rates have largely remained stable.

Some members of the Board of County Supervisors are worried that speculators who have snapped up properties in the ruins of the housing bust will "destroy neighborhoods," Supervisor Maureen S. Caddigan (R-Dumfries) said.

Those fears have prompted some homeowner associations to start vetting potential tenants before they are cleared to rent and recently gave rise to a proposal for a targeted rental inspection program. The plan would give county agents unprecedented access inside homes to ensure they are safe and well-maintained. County officials said an inspection program could protect property values by pressuring renters to keep up their dwellings.

Michelle Casciato, chief of the Neighborhood Services Division, recommended that the board consider creating an inspection program after noticing that as owner-occupied rates fell, building maintenance cases and code enforcement calls from residential tenants increased.

"In our experience, when you have higher rates of renter occupancies, community maintenance standards start to slide," Casciato said. "It's fairly well-documented that rental property is not maintained at the same rate."

State law allows counties to establish residential inspection districts, giving owners 60 days to register all rental property within those boundaries. Once the inventory list is created, agents can inspect homes to ensure they are up to code and safe. Inspectors would have access once every four years, unless a complaint is registered.

The idea has complications. Before county employees can enter homes in a given community, they have to declare the communities blighted -- a step county leaders are not sure they are ready to take. Also, creating an inspection program would cost money, and Prince William is strapped for cash.

Supervisor Frank J. Principi (D-Woodbridge), whose district includes some of the oldest houses in the county, said he can envision moving forward only if problems with renters worsen. "We need to continue to monitor this to determine whether we are seeing a trend, and if we are, then nip it in the bud," he said.

Some homeowner associations decided they couldn't wait. At Wildwood, a Manassas subdivision, the HOA board decided three months ago to vet renters before they're permitted to sign a lease. Landlords are now required to submit background and credit checks on prospective tenants before gaining board approval.

"We had to do something. It was extremely out of hand," Leon Walker, the board's president, said of damage caused by renters, who make up more than one-third of the 92 condominium development. Although Wildwood residents used to feel like there was nothing they could do, Walker realized homeowners have "more control over the community than you think."

Among the hardest hit areas in Prince William are the Marumsco neighborhoods of five communities on the densely packed eastern end of the county, where vinyl-sided tract homes erected more than 50 years ago line winding blocks. One out of every 6.5 homes there is a rental.