Item A: On-Site Management for Multi-Unit Rental Housing

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ECC UGENE ITY OUNCIL AIS GENDA TEM UMMARY Work Session: On-Site Management for Multi-Unit Rental Housing Meeting Date: November 28, 2012 Agenda Item: A Department: Planning and Development Staff Contact: Nan Laurence www.eugene-or.gov Contact Telephone Number: 541-682-5340 ISSUE STATEMENT The work session is an opportunity to share information about on-site management concepts for multi-unit rental housing, and for council consideration and direction on these issues. BACKGROUND The concept of requiring on-site management for multi-unit rental properties surfaced during the council’s consideration of the Capstone student housing project. On May 9, 2012, the council approved a multi-unit property tax exemption (MUPTE) for the Capstone project, which included a requirement that Capstone provide on-site management of the property. The council directed staff to conduct research on how property managers and other communities are managing the impacts of larger rental housing developments including on-site management requirements, and to bring this item back for council consideration by the end of the year. To address the council’s requests, staff contacted property managers and conducted an informal survey of 10 other communities to find out how they were protecting community livability and preventing undesirable behavior for larger multi-unit rental properties. The property managers who specialize in student rental housing stated that they used on-site live-in management and wrote lease provisions to cover tenant behavior. Conversely, property managers specializing in non-student rental housing preferred on-site property management but not live-in resident management. They explained that a live-in manager resulted in unintended consequences, such as decreased project revenue by dedicating a unit and limiting who might apply for the position. Both types of property managers agreed, however, that effective management of the property is crucial. The survey of 10 communities indicated several techniques were used to address the impact of larger rental housing developments. A summary of staff’s research is available in Attachment A. In general, communities addressed the issue of promoting appropriate behavior in four different ways: 1) establishing occupancy limits; 2) developing informative materials/programs for tenants and property managers; 3) specifically applying nuisance ordinances to rental housing; and 4) creating incentives for property owners to better manage their properties. S:\CMO\2012 Council Agendas\M121128\S121128A.doc