HomeMy WebLinkAbout2024-587 (2)
CityClerk
From:City_Attorney
Sent:Tuesday, October 15, 2024 1:54 PM
To:CityClerk; Ramirez, Jonathan
Subject:FW: Goall to reduce renter’s cost
From: preston.wright dcc-mgmt.com <preston.wright@dcc-mgmt.com>
Sent: Tuesday, October 15, 2024 11:25 AM
To: Stafford, Bob <bob.stafford@fayetteville-ar.gov>; Jones, D'Andre <dandre.jones@fayetteville-ar.gov>; Mayor
<Mayor@fayetteville-ar.gov>; City_Attorney <city_attorney@fayetteville-ar.gov>
Subject: Goall to reduce renter’s cost
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Good Morning,
I’m emailing you with concerns regarding the new reports of efforts to “cut costs for renting a home” by
regulation. I’m a property owner and landlord in the City of Fayetteville, with
approximately 38 beds in three properties. Our market comprises mostly of young professionals and the
workforce, with about 38% of the total students. Our costs are increasing much faster than our income. For
example, with our size company, the insurance
market is forcing us to reduce the number of students or lose insurance coverage, prevent us from getting
coverage, or pay very high premiums. Our insurance premiums, property taxes, and maintenance costs are a
greater percentage of income than ever before. We
review those fees every few years to be sure our application fees cover the costs of processing the
applications.
To start, application fees are not a profit center for us. We charge enough to recoup the back-in cost for the
financial and background checks, processing, and allow the convenience of
using credit cards. Th allowable number for application fees being explored don’t bother us at the outset and
are higher than we charge now. However, there is an issue if the fee is "in total" and must include the cost for
financial checks if a guarantor
is used or the financial and background checks if there is a co-applicant. Those are real costs that will be
passed on to others or included in the rent, resulting in no cut in cost for the renter.
You should also note that it is common for applicants to shop and submit several applications. The result is
that we must still process the application, resulting in our back-in service
changing us the cost whether or not the applicant actually rents the apartment. This only adds to someone
else’s cost if we have to return those fees per the new regulation; not cutting the cost only passing it to
someone else.
However, our biggest concern is using another landlord's application and process results to measure against
our property process. BTW: Our applicant can actually choose to get a copy of
the report when filling out our application. We have concerns:
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Our parameters may not be the same, resulting in processes that may hinder an application’s ability to
rent from us. Our individual properties have different parameters as we have a leased furnished
property and utilities paid.
Using another property owner's report will not allow us to base application reviews the same. Looking
at those reports may or may not tell us those parameters, such as minimum credit scores, felony
convictions, crimes against people, or if there are restrictions regarding registered offenders.
For safeguards so that we are receiving a true background report, reports indicate that a notary may be
used to validate the report. A notary of the landlord or applicant's signature? I would assume that the
signature of at least the applicant would be required (even for us to accept it as true). This seems to
increase the applicant's cost and time burden potentially. We are 100% online, so getting a notarized
copy in hand is questionable as we have applicants who are out of state/country.
I’m unsure of the potential conflicts this would cause between the city requirement and federal credit
reporting and privacy regulations.
Again, we are a small property owner and don’t work to scale. Once we have an applicant for processing, we
ask others to hold before submitting; we rarely have more than none submitted
but have those that fail for various reasons. Or fail to respond after approval or not continue placing a deposit.
So, how do we cut the cost of renting? Create a positive partnership between smaller developers or
landowners that nourishes their desire to do business with the city. Reduce our burden
of meeting the same regulations and requirements, such as these, as the big box investors. If there are bad
actors, focus on those instead of punishing all for their actions. I think you’ll find we want to do the right thing
and will also help keep Fayetteville
unique.
Thank you for your time,
Preston Wright
Office 479-231-3000
Direct Office 479-335-3318
Mobile 501-580-9045
Fax 479-335-1281
www.DCC-Mgmt.com
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