Source:


Deaton Investment Real Estate & The Wake County Apartment Association



Monday, July 14, 2008

This isn't Russia. Is this Russia?


You now need to register with the city to own rental property in Raleigh. And you need to pay.

The registration fee is $30 for the first unit and $10/year for every unit you own. Here is an article from the N&O about it.

And another. And another.

The problems with this are ten-fold. It's hard to know where to start, really. Not only has the city created yet another bureaucracy, they have done so at the behest of just a couple of spoiled, vindictive inside-the-beltline neighborhoods pursuing the eradication of rental properties regardless of the fact that they live next to a major university.

While it seems clear to most people with more common sense than a rutabaga that if you move in next to a college you may end up with some rental property nearby. Nevertheless, people in that position are certainly due their peace and quiet. However, and I'll try to say this as clearly as possible: a landlord can't stop a tenant from partying. If the law isn't being broken and rent is being paid on time, eviction really isn't an option. The city believes, however, that by evicting the tenant responsible for the PROP violation, the problem will eventually be solved. As if those tenants will simply move to another neighborhood and never bother anyone again.

The most problematic component of the PROP is the fact that violations remain with the property, even after the bad tenant is gone, whether through eviction or lease termination. How does that help? Again, I'm not sure people really understand rental property. Landlords do not ask for their property to be wrecked, partied in or transformed into a landfill. Tenants sign leases with specific clauses to those very issues. When a tenant does so, they are in violation of their lease. But, a landlord can't physically be at their property every day. It's literally impossible. Weekly checks? Sure, that's reasonable enough. But all it takes is one mattress, one time; on the day the landlord is out of town, to warrant a PROP violation.

Now that the city has funding and a staff, look for a much more aggressive approach toward curbing the ownership of rental property in Raleigh. This vision they have conjured of a shiny happy city where no property is left un-spit-shined like a pair of Meeker's boots licked clean by his councilmen is nothing more than that, a complete and utter delusion of grandeur.

The PROP will not curb blight in the city. It will not stop bad landlords from owning property. What it will do is spike the number of evictions in the city, push poor tenants from property to property, raise rents and strongly bolster the already formidable wall built between city government and the citizens of Raleigh who happen to own rental property.

I would welcome insight on this topic. I will be glad to respond.

2 comments:

Anonymous said...

I've heard talk of PROP, but don't know the details, and I was never served notice by the City of Raleigh, regarding my single-family residential rental. I don't know how they identify rentals and collect fees. They have some additional leg work to do. Aug 12, 2008.

Craig C. Rowe said...

Yeah, we're finding that's the case with a lot of folks. After I published an editorial in the N&O, I received a call from a longtime landlord in Raleigh who was also surprised to learn about it. Too bad. You can learn more about it at our Web site. Visit the "Learn About Multi-family" page on the Deaton Web site. PROP info is the first bold heading.