Thread: How do problem rentals impact single-family home values?

Background: A rental home has created a slew of problems/ concerns in our neighborhood, which is zoned as a single family residential district. To begin, it was leased before it had proper permits and inspections from the city, thus making it an illegal rental. A family of six moved in and were soon joined by a family of three. In total, there were four adults and five children in a 3-bedroom house with 1,100 square feet. Beyond the overcrowding, there are problems with noise, trash and suspicious coming and going day and night. At one time, there were seven cars associated with this property.

A city inspector told us it's next to impossible to prove the home is overcrowded because they have to give the tenants 24-hour notice before they conduct an inspection. That gives them plenty of time to get the extra beds and other signs of over-occupancy out of sight.

Questions:

• How do rental properties that come replete with the host of problems described above affect nearby property values?
• What are reliable, proven and research-driven sources of information on this topic?
• We're doing our utmost to protect the investment we made in our home while improving the neighborhood.
• Our desire is to gather legitimate information as we attempt to resolve the issues surrounding the problem rental property with the city and adjacent landlord.
• What we're trying to avoid are the token and emotion-driven "not in my backyard" and "you're lowering my property value" arguments that come across as arbitrary and difficult to prove/ support.

I spoke to some real estate agents I know and they shared some info on this subject. They said problem properties most certainly have an adverse impact on adjacent home values.

It seems not to be a matter of if problem rentals lower nearby real estate values, but how much they drive them down.

Aw man, I know exactly how you feel, as of now we are renting a room and is currently having that kind of a problem too.. Noisy neighbors, overcrowded, not to mention, the bathroom! Urgh! We have to share it with the other tenants so it gets flooded most of the time! So annoying.. And what's really pissing me off is that the landlord doesn't even do anything about it as long as he gets the rental fees.. I'm seriously thinking right now if the house actually has legal permits..And even if it does have the permit, I'm wondering if it is at least inspected properly... We want to move out as soon as possible but our money would go to waste, we're just waiting to finish our down payment and we'll leave as soon as possible..
It really is best to buy your own house, if you have saved enough money of course, but for the meantime, I think it's better to rent an apartment or a condo..

Your post is like a exam. Reading comprehension lol

Owning a house is a really great idea. Renting is just a waste money and not convenient.

It is really hard if you are renting a space or house with your family. It takes a lot of patience if you can't afford to build your own house.

Fort Bonifacio Apartment for Rent