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The Return of Rooming Houses: What Landlords Should Know About 21st Century Boarding Houses

by Editor | ezLandlordForms
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What images does the term “boarding house” conjure up for you?

Perhaps you’re imagining a dilapidated building in center city occupied by the less-privileged or under-employed; or a single family home where seven students share rooms.  If you’re more familiar with the history of boarding and rooming houses, you may have in mind a working-class home where mostly single, migrant men settled in for a period of time while pursuing a better way of life.  Any one or all of these images would be correct.

American rooming houses date back to the early 19th century where larger cities from Manhattan to Chicago were rife with multi-room houses filled with strangers who shared common areas and sometimes home-cooked meals while pursuing the American Dream.  For many people, this dream was made possible in large part by the affordability of the rooming houses, as the expense oftheir own home or apartment would have meant delaying, or perhaps even foregoing, the American Dream.

The popularity of the rooming houses began to wane after mass industrialization in America, particularly dropping off after World War II.  More Americans were gainfully employed and able to afford their own apartments and homes.  At around the same time, local governments began scrutinizing the accommodations and banning them in many areas.  Rooming houses were said to contribute to the spread of diseases and an increase in urbanized crime.  Bans on rooming houses often came after one too many complaints from neighbors about the overcrowded conditions and the subsequent code violations.

A recent return to the use of rooming houses as a means of surviving in this economic climate has been met head-on with opposition from neighbors and city officials.  For many leaders across the U.S. and Canada, rooming houses are largely considered non-compliant buildings filled with code violations and potential hellions.

Officials in some US cities are planning to raise the bar for landlords insistent on profiting from illegal rooming houses.  For example, Brookhaven, NY boarding house landlords will soon be facing fines rising from $2,000 to $5,000 for first offenses, and from $3,000 to $10,000 for second offenses, in an effort to crack down on what town supervisor Ed Romaine calls “unscrupulous landlords.”

In Fairfax, VA city leaders are planning to impose a fine on the renters for the very first time.  In the past, only the landlords of rooming houses were fined for violations.

In Scarborough, Canada, rooming houses for students are a common source of complaints.  According to the licensing department in Scarborough, there are 120 active files stemming from complaints over suspected illegal boarding houses.  Many are believed to be homes converted to accommodate students.  Scarborough City Councilor, Ron Moeser, reports seeing the number of rooming houses for students rising.

What makes rooming houses illegal in most cities and provinces across the US and Canada is not the shared living concept itself, but the many code violations and safety hazards often associated with it.  Additionally, only a small number of landlords actually register their properties with their jurisdictions and provinces as required.

Officials in both the U.S. and Canada say they recognize the benefits rooming houses offer to those in need of more affordable housing… but not as much as they recognize the complaints from neighbors and the political value of “looking tough on opportunistic landlords.”

There remains a need for affordable, communal living however, and landlords can meet that need through boarding houses if they are willing to observe public safety concerns and local laws regulating zoning and landlord-tenant issues.

Register – A landlord’s obligation begins here. Registering with the local enforcement agency will guarantee compliance with housing codes governing rooming houses, and possibly engender cooperation from the neighbors).  Landlords should also be certain to apply for any permits necessary for structural changes to the home.

Document – Everything should be in writing from rental agreements with tenants (room leases) to daily operations and emergency procedures.  Every tenant’s room should have a copy of a tenant handbook outlining the rules of the house and contact names and numbers for emergencies.  Every tenant should have their own copy of the room lease agreement.

Inspect and Service – Once you’ve registered, it is likely the premises will need to be inspected.  Budget for additional inspection-related repairs, as the inspectors demonstrate to their bosses they actually showed up at each property by documenting problems at each property.  Once occupied, perform preventative maintenance and inspections, and insist that tenants report any repair requests.

Lay Groundwork for Mediation – Inevitably there will be conflicts among the housemates periodically.  You can minimize this by outlining to each tenant at the beginning of their lease agreement that there will be a neutral party assigned whenever there is conflict that is not resolved between parties.  Have someone other than yourself mediate between residents (idea: have this be a rotating obligation among residents, much like jury duty).  This will be helpful in maintaining your neutrality, and ensuring that you are not drawn into the dispute.

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