Does Absence of Owner-Tenant Occupancy Data Affect MPR?

[J Grant]

The reconciliation section has the EA's that are allowed. No other EA's are allowed. Too many confuse EA's with just plain assumptions. Such as the assumption that our data sources are reliable.

Agree.
A few posters , usually commercial appraisers who do not do URAR work, will advise appraisers to make an EA. They either do not know, or do not care , that their advice is incorrect because making an EA other than the printed assumptions on the URAR form is not allowed. .

 

[Zoe]

Here is another kicker for you personally. If complex is say 80% tenant occupied as reported by management? What inferences does that give you in your appraisal?

See? Do you think income approach would be both applicable and necessary?

 

[Zoe]

Agree.
A few posters , usually commercial appraisers who do not do URAR work, will advise appraisers to make an EA. They either do not know, or do not care , that their advice is incorrect because making an EA other than the printed assumptions on the URAR form is not allowed. .

Ya'll have a bunch of time shares in Florida. I'm sure that complicates things as well. Like an owner stays a month or two and leaves and rents out the rest of year. All that comes into play on what the condo association bylaws will allow.

 

[J Grant]

Ya'll have a bunch of time shares in Florida. I'm sure that complicates things as well.

No it does not. Most residential condos do not allow time shares (fractional ownership)

We do have a fair amount of snowbirds or short term rentals but only in certain buildings. Many condos , ( and it is reported on the MLS listings ) restrict rentals because they want to retain a predominantly owner occupied environment. Thus they have rules like no renting until after 2 years occupancy, or each unit owner only allowed to rent one time a year and not for less than 90 days, any tenant must be approved by the condo board

Other buildings are lenient and typically have more rentals, the worst of them often are condos converted from a former rental complex where investors can tend to own a number of units

 

[Zoe]

No it does not. Most residential condos do not allow time shares (fractional ownership)

We do have a fair amount of snowbirds or short term rentals but only in certain buildings. Many condos , ( and it is reported on the MLS listings ) restrict rentals because they want to retain a predominantly owner occupied environment. Thus they have rules like no renting until after 2 years occupancy, or each unit owner only allowed to rent one time a year and not for less than 90 days, any tenant must be approved by the condo board

Other buildings are lenient and typically have more rentals, the worst of them often are condos converted from a former rental complex where investors can tend to own a number of units

That makes sense. I'm sure many single family homes in Florida operate on same basis. Many single family homes in high attraction areas operate that way. Of course on a single family home, the owner is the landlord and management company on many single family homes.

Most of your condos' operating on time shares or owner/occupied vs lease are probably on the beach and need approval from management of the Condo association.

Orlando is not on the ocean beach. You probably have a bunch there.

 

[Dublin ohio]

Now you could say I am trying to get in touch with management but have not been able to contact them yet and that would buy you a little time. Everybody connected to the transaction would help you contact management. You would be getting contact numbers and probably a call from management.

Not sure how it is in your area. But the vast majority of mgmt companies around here use a pay service. Anywhere from $50-$200. So a call from the mgmt company gets you the website of the pay service

 

[Zoe]

Not sure how it is in your area. But the vast majority of mgmt companies around here use a pay service. Anywhere from $50-$200. So a call from the mgmt company gets you the website of the pay service

It varies here from project to project, but most use a management company that keeps up with all of it. We don't have a ton of huge condo complexes. We have several but not very many. I would say most are maybe 50- 100 units or less. I haven't studied because it varies so much between different locations. But we are nothing like Florida in number of big condo developments.

Most of ours are either on the MIssissippi River or elderly housing scattered around the whole county. Shelby County is huge for a County. It is largest County geographically in TN. It has 7 different city jurisdictions.

Nashville maybe has more, but I don't think they have a ton either.

 

[Zoe]

If was guessing, I would guess California, New York, or Florida have the most condo development units. I did some conversion units years ago where they were converting like an old,old structure into condo's. it was fun and wasn't that difficult. That was before the crash.

 

[maugust]

In my area you can check the tax record for how many units are owner occupied. It's a valid alternative source.

 

[Zoe]

In my area you can check the tax record for how many units are owner occupied. It's a valid alternative source.

We don't have that option here. Wow, that means somebody has to report to the tax assessor office. I can see where that would be helpful. That goes back to like Florida where so many are owner occupied sometimes and rent out rest of the year.

I can see Maryland having a ton of condo units that are time shared or rented. Baltimore has best crab cakes I have ever eaten. Ya'll have a bunch of ocean front property.

Your fresh lump crab cakes are to die for. LOL People advertise lump crab cakes. I'm like these are not lump crab cakes. LOL

Go to Baltimore if you want lump crab cakes.