As Denver’s housing costs increase and we face unprecedented economic circumstances, we are seeing a rise in what is called “Creative Housing.”
Creative Housing refers to when independent renters pursue short-term rental solutions that are cheaper and offer less responsibility than a full-length lease. Under a MOD Properties lease, this would considered subletting and would be prohibited, along with any VRBO/AirBNB activities. Our motivation behind this is primarily that if your tenants are advertising for space in your home, even without your permission, and they violate Fair Housing regulations, you could still be liable as the property owner.
The shifting rental culture cannot be ignored though, and we want to support residents who may have an unexpected life change that results in one or more residents wishing to remain in the home. Continuing occupancy is advantageous to all parties when done correctly. See how much money vacancy costs you here
Many inexperienced Landlords will let leaseholders shift around roommates at will without properly formalizing these changes. We’ve inherited these properties and their complicated legal situations in tow. If Landlords/Owners fail to document clear expectations with residents and prospective residents during this process, the risk for liability sky rockets — and so do the legal costs!
Two of the most important items to cover here are 1) prospective residents must apply for and be approved along with re-qualified remaining residents and 2) clear expectations for the security deposit transfer communicated to all parties involved. We’ve seen too many poorly managed lease amendments that offer Owners minimal protection in these areas.